Shipping body reacts to clearing agents’ claims over business losses

Dar es Salaam. While manufacturers and clearing agents say they were losing business to a state-owned firm, the latter distances itself from their nightmares and calls those adversely affected to follow the laid down complaints’ procedures.

Speaking during a meeting between the Confederation of Tanzania Industries (CTI) and the deputy Minister for Industry and Trade, Mr Exaud Kigahe yesterday, some members said they have lost out since the coming of the Tanzania Shipping Agencies Corporation (Tasac).

In fact, Tanzania Freight Forwarders Association (Taffa) claim that 300 of its 1000 members have failed to renew their membership certificates over claims that there was no longer business for them to do.

Keds Tanzania Co.Ltd project manager Diamond Wang said Tasac was not that quick in facilitating vessel berthing for the owners to unload their goods.

“This increases our operational costs and so does the price of the final product,” noted Mr Wang.

Adding: “It is the final consumer who is going to bear the burden.”

Bakhresa Group Corporate Affairs Director Hussein Sufian said the costs that Tasac makes players to incur does not only add to operational costs, but also deny government revenue due to reduced profit.

Noting that Tasac was unprofessional, he said, its officials were not responding to the complaints’ emails. “They should admit their mistakes and clearly their house.” Noted Mr Sufian.

Taffa President Edward Urio also said Tasac adds operational costs due to delays in berthing time hence vessel demurrage charges.

Vessel demurrage charges, according to him, range from $25,000 to $40,000 per day depending on the capacity of the vessel and the third party agreement.

“With Tasac being a government entity, it usually does not lobby, but wait for the port’s decision which can sometimes take long hence causing additional costs,” said Mr Urio.

Eventually, he said, manufacturers will transfer costs to the end user. It will also atomically have added costs of production and increase the price of their products which will not be able to compete in regional markets like East African Community (EAC) and Southern African Development Community (Sadc).

Mr Urio added that a number of Taffa’s members have reduced a number of their staff to a minimum of three or four, well below from 15 to 20 staff due to reduced works lost to Tasac.

But responding to the issues, Tasac director general Emmanuel Ndomba said there was no a single case of delay that was submitted to his office,

He said if one incurred losses due to delays there were procedures to follow, which are taking complaints to his office, and if not satisfied to the Transport ministry and later on court.

“If all documents and procedures are intact, it takes us as a shipping agency less than 24 hours to issue a delivery order to an importer,” said Mr Ndomba.

Deputy Minister Kigahe said the complaints would be shared with other respective authorities to see how it could be addressed for a win-win situation.