Sumatra halts disputed cargo tracking system

Dar es Salaam. The Surface and Marine Transport Regulatory Authority (Sumatra) has directed the Tanzania Ports Authority to put on hold the planned introduction of the Electronic Cargo Tracking Note (ECTN).

TPA announced in July that it had entered into an agreement with Belgium-based Antaser BVBA to introduce the system at Dar es Salaam port, but the decision was met with strong opposition from shipping and clearing agents.

Sumatra says in a communication to TPA seen by The Citizen that the use of ECTN would lengthen the cargo documentation process and introduce additional costs to shippers and that such costs would eventually be passed on to final consumers.

“TPA should instruct Antaser BVBA to withdraw the notice to introduce ECTN and the associated schedule of costs to users which were uploaded on the Antaser website,” says the communication signed by acting Sumatra Director General Ahmad Kilima.

According to Sumatra, the introduction of ECTN would have had added an extra 135 euros on containerised imports into Tanzania. The system further requires every user to maintain a credit balance of not less than 250 euros with Antaser BVBA at all times.

“Thus it has been established that the use of ECTN will have cost implications on shippers, and such costs would be borne by importers directly and eventually passed on to final consumers,” says Sumatra.

The regulator has also directed TPA to instruct Antaser BVBA to use the same channel to inform shippers that the introduction of ECTN had been suspended until further notice.

Sumatra says TPA should consult with the regulator in accordance with the existing regulations and procedures before introducing the new system.

“TPA should conduct meaningful consultations with all stakeholders with a view to establishing potential benefits and costs of the envisaged system.”

Sumatra says the introduction of ECTN by itself would not simplify the cargo documentation process.

“It would require more time on the part of the shipper to complete the documentation process and places huge financial burden on shippers not only in form of paying for every ECTN but also maintaining credit balance all the time with Antaser BVBA.”

Contacted for comment, Tanzania Shipping Agents Association chairman Emmanuel Mallya commended the suspension, saying there had to be extensive consultations among stakeholders before any decision that could have far-reaching implications was implemented.

“Shipping lines and shipping agents have in place systems that track cargo and provide all the required information. This new system was a duplication of existing systems,” he said.

ECTN, which was initially scheduled to become operational on September 1, was said to be aimed at avoid undue delays and eliminate added cost to shippers, but importers said they would have to dig deeper in their pockets.

Following stiff opposition, TPA postponed the introduction of ECTN until further notice.

Ms Janeth Ruzangi, TPA acting corporate and communications manager, told The Citizen that the system was deliberately delayed to integrate it with other systems and involve shipping stakeholders.