Broader mandate for state shipping firm sparks outcry

Dar es Salaam. The mandate of Tanzania Shipping Agencies Corporation (Tasac) has been extended.

In line with the amendment of the Tanzania Shipping Agencies Corporation Act, 2017 passed by Parliament last week, Tasac will also handle tankers, car carriers, cruise vessels, casual callers, chartered vessels and military ships.

The law has also broadened Tasac’s role from a shipping agency to provision of clearing and forwarding services in other modes of transport. This means that the State-owned agency’s mandate has been extended to roads, border posts, airports and pipelines.

This has set alarm bells ringing among shipping agents, whose role will now be restricted to handling container ships.

“Our views as key stakeholders were not considered. The industry regulator now has a monopoly on the shipping agency business with the exception of container vessels at this stage. We think this is contrary to the original objective, which was to promote competition and effective management in the marine transport sub-sector,” said Tanzania Shipping Agents Association (Tasaa) executive secretary Abel Uronu. “At least 11 companies with about 500 employees face imminent demise in this new era of the business being monopolised by a state agency.”

The government said in the Bill submitted under a certificate of urgency that the purpose of the exclusive mandate was to curb malpractices in the importation and exportation of goods transported by ship.

The goods include minerals, mineral concentrates, machinery, equipment, petroleum products, firearms, ammunition, live animals, government trophies, fertiliser, industrial and domestic sugar and cooking oil.

The move is also aimed at increasing government revenue, controlling illegal immigration and enhancing national security.

The amendment means that government, through Tasac, will be competing with private players in the clearing and forwarding business.

Tanzania Freight Forwarders Association (Taffa) secretary-general Tony Swai said there was a need for a dialogue with the government on the matter.

“I don’t think the original intention was for Tasac to become an active player and compete with private entities. It is supposed to be a regulator charged with ensuring a conducive business environment and level playing ground in the industry,” he said.

“The government could strengthen its clearing unit at the Government Procurement Services Agency and confine the role of Tasac to that of a regulator. Monopoly in this business will kill off private players who are supposed to pay fees to Tasac.

“It seems that some people are deliberately distorting the role of the new agency,” Mr Swai said.

The amendment dealt yet another blow to freight forwarders after the government allowed individuals to start clearing their goods from Dar es Salaam Port without engaging agents effective from today.

The government has abolished the Surface and Marine Transport Regulatory Authority (Sumatra), which regulated rail, road and marine transport, and formed two separate agencies – Tasac and the Land Transport Regulatory Authority (Latra).