We’re not here to kill off private firms, says Tasac
What you need to know:
Tanzania Shipping Agencies Corporation (Tasac) has mentioned its areas of jurisdiction on clearing and forwarding activities, explaining the role of other private agencies in the sector. It cleared the fear among private Freight Forwarders who were worrying to be kicked out of the business after starting its operations.
Dar es Salaam. Tanzania Shipping Agencies Corporation (Tasac) has allayed fears that it has become a state-owned monopoly that is out to kill off private enterprise in the clearing and forwarding business.
Tasac was established under the Tanzania Shipping Agencies Act (Act No. 14 of 2017), and started operating in April, last year, with mandates as both the sector regulator and clearing and forwarding agency.
Private players have voiced their concern that Tasac is gradually being transformed into a monopoly that will eventually push private firms out of business.
Tanzania Freight Forwarders Association (Taffa) secretary-general Tony Swai recently called for an urgent 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.
Mr Swai added that the government should strengthen its clearing unit within the Government Procurement Services Agency and confine the role of Tasac to that of a regulator.
He said monopolisation of the business by the State will kill off private players who are supposed to pay fees to Tasac.
However, Tasac managing director Emmanuel Ndomba said at a news conference yesterday that the corporation’s aim was not to throttle private enterprise, but to regulate the industry and foster competition on a level playing ground.
“It’s not true that Tasac is exclusively taking over all clearing and forwarding functions or prohibiting other companies from engaging in the business. We are here to regulate the sector and compete with other companies in the market,” he said.
Mr Ndomba added that one of Tasac’s key objectives was to promote efficiency at Dar es Salaam Port by eliminating bureaucracy and reducing costs.
He also dismissed claims that Tasac had effectively become a monopoly, saying there were clear boundaries in the firm’s business operations.
Tasac’s exclusive mandate is limited to carrying out clearing and forwarding functions involving the importation and exportation of minerals, mineral concentrates, mining machinery, products and/or extracts related to minerals and petroleum, as well as arms and ammunitions, live animals and government trophies.
Mr Ndomba confirmed that a Bill seeking to extend Tasac’s areas of operations had been tabled Parliament.
“If the proposed amendment to the relevant law is approved, we will be solely responsible for handling all imported fertiliser, chemicals, industrial and domestic sugar, cooking oil and wheat.”
The corporation will also take charge of oil and gas, petroleum products, tanker ships, pure car-carrier vessels, cruise vessels, exhibition vessels, casual callers, chartered vessels and military vessels.
“But there are so many other products which other forwarders can handle. For instance, the law does not mention the handling of containers,” Mr Ndomba said, adding that private players still had a key role to play in the business.
