Government Removes Storage Charges at Dar es Salaam Port to Alleviate Congestion
The government of Tanzania has announced the removal of all storage charges at the Port of Dar es Salaam. This move aims to ease congestion and support the smooth resumption of operations following a post-election lockdown that severely disrupted port activities.
The disruption had far-reaching consequences, not only for Tanzania but also for East and Central Africa. Several landlocked countries, including Zambia, Malawi, Rwanda, Burundi, and the Democratic Republic of Congo, rely heavily on the Dar es Salaam port for their imports and exports of essential commodities such as copper, fuel, fertilizers, agricultural produce, and manufactured goods.
Plasduce Mbossa, the director general of the Tanzania Ports Authority (TPA), confirmed that the removal of storage charges is intended to ease the financial burden on importers and freight forwarders affected by the lockdown.
“We are removing all storage charges, and if there are any other operational challenges, we are working closely with stakeholders to resolve them,” Mr Mbossa stated.
Daniel Malongo, chairperson of the Tanzania Shipping Agents Association (TASAA), explained that operations at the port came to a complete standstill during the lockdown.
“It was practically a total curfew; we could not release trucks or remove cargo,” he said. “There were no staff to issue documentation, no internet connectivity to process customs clearances.”
At the height of the disruption, 17 vessels were anchored at DP World outside the main harbor waiting to dock, while 10 others were stuck at the Adani terminal, unable to discharge their cargo.
“The losses were enormous,” Mr Malongo added. “Idle vessels cost about $25,000 per day, translating into millions of dollars in cumulative losses for shipping companies and the government.”
Despite the losses incurred, he acknowledged the government’s efforts following the resumption of operations. An initiative has been implemented to address the backlog at Terminal One by deploying additional cranes to expedite ship departures.
Furthermore, the government has convened a meeting with all stakeholders to find sustainable solutions for easing commodity congestion, as many ships remain loaded while consumers await their cargo.
“We also appreciate the government’s decision to waive storage charges, which has provided much-needed relief during this period,” he said.
The resumption of port operations followed a presidential directive issued on November 3, which allowed government institutions and logistics operators to return to work and restore internet access.
Both the TPA and DP World terminals have since reopened, enabling vessels to begin discharging cargo destined for neighboring countries.
However, the effects of the shutdown continue to linger. According to Talib Rashid, an executive councilor of the Tanzania Freight Forwarders Association (TAFFA), the lack of internet access during the lockdown made it impossible to process documentation, further delaying cargo clearance.
“Even though the port was technically operating 24 hours, we were instructed to return home by 6 p.m., and movement between the main port and dry ports was restricted,” he said.
“We have since held discussions with the Tanzania Shipping Agencies Corporation (TASAC) and TPA, and there are directives to consider waivers or subsidies to offset the extra costs incurred.”
Regional Impact and Lessons Learned
The temporary paralysis at Dar es Salaam highlighted the vulnerability of regional trade routes to domestic political disruptions in transit countries.
Oscar Mkude, an independent analyst, noted that the cargo that recently arrived at the port was scheduled for removal after remaining there for an extended period.
“Some shipments arrived but were unable to enter the port on time, leading to increased costs, including expenses for accommodating drivers depending on the nature of the cargo,” he said.
He pointed out that the impact extends beyond the supply chain; significant losses have also been incurred. In terms of political risk insurance, many countries in Africa lack such services.
As a result, most traders operate on trust that their goods will be shipped and delivered without issue. However, when political risks arise, these disruptions often translate into substantial financial losses.