Six projects to gobble up huge chunk of Transport budget

Dar es Salaam. A least six major projects will get the lion’s share (over 92 percent) of the Transport ministry’s development funds in the next financial year.

Transport minister Makame Mbarawa on Monday asked Parliament to approve a Sh2.72 trillion budget, with Sh2.61 trillion being set aside for development projects.

Sh2.4 trillion will be channelled into six projects, including the ongoing construction of the standard gauge railway (SGR) for which Sh1.5 trillion has been budgeted.

Prof Mbarawa said SGR work to be carried out next financial year includes completion of the Dar es Salaam-Morogoro (300km) and Morogoro-Makutupora (422 km) sections.

“Work will also continue to be undertaken on the Makutupora-Tabora (368 km); Tabora-Isaka section (165 km); Mwanza-Isaka (341 km) and Tabora-Kigoma (506 km) sections,” he added.

Other activities will be the commencement of the construction of the 156.6km section between Uvinza and Musongati, procurement of equipment and training of SGR personnel.

“The funds will also be used to finance initial SGR operations between Dar es Salaam and Dodoma and implementation of strategies aimed at building up the new railway’s cargo business,” Prof Mbarawa told the House.

Sh324.5 billion has been set aside for the acquisition of new aircraft for Air Tanzania Company Limited (ATCL).

“This will facilitate the purchase of three new aircraft – one medium-range plane, one short-range aircraft and one cargo plane capable of carrying up to 23 tonnes of cargo,” Prof Mbarawa said.

The funds will also be spent on a new engine for ATCL’s Boeing 737-9 MAX fleet and facilitating initial operating costs for a Dash 8 Q400 aircraft.

ATCL is also expected to improve its office buildings and hangars with the allocation.

The minister said the national carrier’s performance has been improving steadily, with the airline carrying 850,660 passengers from July 2023 to March 2024 compared to 826,594 passengers transported during the previous corresponding period.

ATCL also transported 5,034.2 tonnes of cargo within and outside the country compared to 2,680.9 tonnes that were carried from July 2022 to March 2023, representing an increase of 87.78 percent.

“This increase can largely be attributed to the acquisition of the Boeing 767-300F freighter, which is capable of carrying up to 54 tonnes of cargo. The plane transports cargo between Dar es Salaam and Nairobi and Dubai once a week, as well as other destinations,” Prof Mbarawa said.

The ministry plans to spend Sh190 billion on the procurement and rehabilitation of marine vessels.

A new passenger and cargo vessel that will operate on Lake Tanganyika will be constructed and a feasibility study carried out for the construction of a new cargo ship that will sail on the Indian Ocean.

A shipbuilding factory capable of handling vessels weighing up to 5,000 tonnes operating on Lake Tanganyika will also be built.

Other notable projects are be the rehabilitation of Kilimanjaro International Airport (KIA), for which Sh50 billion will be allocated,  and further development of the Dar es Salaam Maritime Gateway Project (DMGP) at the cost of Sh51.1 billion.

The government also plans to spend Sh294.8 billion on the repair and maintenance of the existing metre gauge railway (MGR) and procurement and refurbishment of related equipment.

“Also in the pipeline is the improvement of signalling, communication and electrical systems on the MGR; enhancement of ICT systems, installation of fences and signs and a feasibility study and preliminary design for the rehabilitation of the MGR section between Kilosa and Kidatu,” Prof Mbarawa said.

He added that challenges that were faced in the implementation of the current budget include climate change, global economic recession, fuel price surges, high demand for financing, inadequate skilled personnel and the invasion and destruction of transport infrastructure.

Parliamentary committee’s views

Since the transport sector is vital for economic development, Parliament’s Infrastructure Development Committee advised the ministry to strive to enhance efficiency and innovation in order to improve transport services in the country.

“The committee advises the government to ensure that SGR services between Dar es Salaam and Dodoma commence as soon as possible so that Tanzanians can enjoy this efficient mode of transport and the government can significantly increase its revenues,” said committee chairman Selemani Kakoso.

The committee also asked the government prepare a strategy to improve collections on railway lines that are currently operational.

 “This strategy should go hand-in-hand with deliberate efforts to improve infrastructure, including allocating budgets for regular and prompt maintenance when the railway infrastructure is affected by calamities such as heavy rainfall”.

On ATCL, the committee asked the government to devise better operational methods that will enhance the airline’s efficiency to improve services and enable it to operate profitably and ultimately increase government revenue.

Mr Kakoso said there is also a need for full oversight of the implementation of all projects to ensure that they reflect high standards, sustainability and value for money.

Promising rise in port cargo handling

The Tanzania Ports Authority (TPA) witnessed a significant rise in cargo handling, reaching 20.72 million tonnes from July 2023 to March 2024, according to Prof Mbarawa.

This was an increase of 42.31 percent on the 14.56 million metric tonnes were handled during the corresponding period in 2022/23.

Prof Mbarawa told Parliament that these results signify the fruitful outcomes of targeted improvements at local ports in addition to effective marketing strategies.

TPA also handled 805,167 containers, up from 688,609 units, which was an increase of 16.92 percent.

“This increase in cargo volume and containers can be attributed to various ongoing strategies, including the improvement of Dar es Salaam, Tanga, and Mtwara ports,” Prof Mbarawa said.

Significant marketing efforts to promote and seek more business opportunities from neighbouring countries, namely including Rwanda, Burundi, Uganda, Zambia, Malawi, the Democratic Republic of Congo (DRC) and Zimbabwe have also resulted in a positive outcomes.

Prof Mbarawa told the National Assembly that as a result of these efforts, cargo transported to neighbouring countries increased to 8,871,438 tonnes in 2023 from 8,239,112 tonnes in 2022, representing growth of 7.67 percent.

At Dar es Salaam Port TPA, has continued to implement various tasks, with dredging reaching a depth of 15.5 metres and the expansion of the ship entry and turning gate reaching a width of 200 metres, making it possible for the port to accommodate large vessels with a length of up to 305 metres.

“Feasibility studies for the improvement of berths number 8 to 11 and the construction of berths number 12 to 15 are ongoing,” Prof Mbarawa said.

The minister noted that during the time, the second phase of the improvement of Tanga Port was completed, including upgrading two gates with a total length of 450 metres; upgrading the container storage area with a size of 6,400 square metres and the purchase of a total of 16 pieces of machinery.

“The government, through TPA, has commenced the implementation of the Kisiwa Mgao port construction project, specifically for handling dirty cargo such as coal and cement,” he said, adding that the feasibility study was completed in February 2024 and procurement procedures for the contractor and consulting engineer are currently well underway.

“With regard to the Port of Bagamoyo, the government has completed the compensation process for residents to be affected in the 55-square-kilometre project area,” he said.

 Prof Mbarawa added that the relevant feasibility study is in its final stages.