The Minister for Works, Transport and Communication, Prof Makame Mbarawa (left) and the Tanga Cement Company Limited managing director, Reinhardt Swart carry one of the bags of cement that were being packed into a container so it can be transported by rail to Kigoma and Mwanza. This follows a deal that was signed by the cement manufacturer and Tanzania Railways Limited in Tanga yesterday. PHOTO|SALIM
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Tanga Cement Plc (TCPLC) and Tanzania Railways Limited (TRL) yesterday signed a Memorandum of Understanding (MoU) that will see the former transporting its products by rail to its customers in Kigoma and Mwanza regions.
Tanga. Tanga Cement Plc (TCPLC) and Tanzania Railways Limited (TRL) yesterday signed a Memorandum of Understanding (MoU) that will see the former transporting its products by rail to its customers in Kigoma and Mwanza regions.
The agreement, which increases TRL’s scope of operations, considering that the state-owned railways firm will now be required to ply the Tanga line, was graced by Minister for Works, Transport and Communication, Prof Makame Mbarawa
Besides, the deal also offers Tanga Cement Plc a safer, environmentally-friendly and more efficient mode of transport.
The cement manufacturer’s managing director, Mr Reinhardt Swart and TRL’s acting managing director, Mr Masanja Kadogosa represented their two organisations at the signing ceremony yesterday, paving the way for the latter to start transporting over 35,000 tonnes of cement per month.
This is equivalent to one-third of the plant’s existing monthly production of 105,000 tonnes.
Speaking during the signing ceremony and flagging off for the first train under the arrangement in Tanga yesterday, Mr Swart said the agreement offers Tanga Cement Plc with the much-needed logistics solutions that will improve efficiency, enhance its competitive advantage and reduce transport costs.
“As a local cement manufacturer, an efficient distribution scheme is crucial for our competitive growth. Rail is globally preferred as a more cost-effective and environmentally friendly mode of transport than trucks for cement, and we look forward to using the rail network to further enhance the efficiency of our distribution system to our customers,” he said.
According to Mr Kadogosa, TRL has allocated five locomotives and a shunting locomotive to Tanga Cement Plc to transport some 20,000 tonnes of cement each month from Pongwe to Kigoma and some 15,000 tonnes more from Pongwe to Mwanza.
Tanga Cement will be required to pay for the freight services in advance thus ensuring funds are received in good time by TRL.
“We are delighted to provide the local factory with a sustainable transport solution that will positively impact their customers and the Tanzanian community in general,” he said.
Prof Mbarawa was recently quoted as saying that the government was in final talks with Tanga Cement Plc to use the Usambara Railway line for product distribution, in a move intended to minimise damage to the country’s road network.
