Truck operators want a piece of the SGR pie
Dar es Salaam. Truck owners view the standard gauge railway (SGR) as an investment opportunity instead of a potential competitor.
The Tanzania Truck Owners Association (Tatoa) says a number of its members have expressed interest in striking deals with the government to run the SGR under a public-private partnership (PPP) arrangement.
“In fact, a number of our members have already submitted their proposals to the government through the relevant ministry. We have not submitted proposals as an association, but as individual member companies,” Tatoa vice chairman Elias Lukumay told The Citizen recently.
He said the operators were considering a number of options, including buying freight wagons that will complement those operated by Tanzania Railways Corporation (TRC).
“That way, TRC will have enough wagons at its disposal. It will also enable transporters both within and outside the country to move more cargo than is currently the case,” Mr Lukumay said.
He added that Works, Transport and Communication minister Isack Kamwelwe said during a recent meeting with Tatoa that truck operators should consider investing in some aspects of the first phase of the SGR linking Dar es Salaam and Morogoro, which is currently under construction.
Reached for comment, Works, Transport and Communication permanent secretary Leonard Chamuriho said the government would give any proposal from the private sector due consideration.
“We have not received any proposal so far, but as soon as it arrives it will be given the consideration it deserves. The government’s aim is to provide quality infrastructure. Investment is another thing altogether,” he said.
According to Mr Lukumay, the SGR will raise Tanzania’s profile in transport in East and Central Africa. This will result in more business for truck owners.
Tatoa chief executive Octavian Kivyiro said rail is one of the cheapest ways of transporting goods over long distances, adding that partnership with the government in the SGR project is the way to go following recent changes to rules governing vehicle axle loads.
“We will remain in business, but the most important thing is to see how we can work with the government and benefit from rail transport,” he said.
Mr Kamwelwe said earlier this month that the procurement of locomotives and wagons to be used on the Dar es Salaam-Morogoro section of the SGR had been completed ahead of the launch of services in December.
While truck owners seek to partner with the government in running the SGR, bus owners are bracing for stiff competition.
There are fears that SGR trains, which are expected to haul passengers and cargo between Dar es Salaam and Morogoro at speeds of up to 160kph, could have a devastating impact on bus services between the two destinations.
It is estimated that SGR trains will zip between the two urban centres in about one-and-a-half hours. In contrast, buses now travel between Dar es Salaam and Morogoro in about four hours, thanks to strict enforcement of speed limits along the 200km route.
Tanzania Bus Owners Association (Taboa) spokesperson Thabit Mfaume earlier this month played down fears that the launch of SGR services between Dar es Salaam and Morogoro would signal the end of bus operations between the two destinations.
“Bus services are here to stay. The most important thing on our side is to improve our services. Many of our members are already doing just that. The Dar es Salaam-Morogoro route will soon have the most modern buses operating in East Africa,” he said.
Taboa secretary-general Enea Mrutu asked the government to take a closer look at the Dar es Salaam- Morogoro highway, saying there were too many traffic checkpoints and “overzealous” traffic police officers.
This, he added, made it difficult for bus operators to offer services that were to their customers’ expectations.
SGR project manager Machibya Massanja said the project was not conceived with the intention of driving bus and truck operators out of business.
“SGR and road transport services will complement one another. In fact, business will rise sharply for bus operators,” he said.
