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Ports are an interface between water transportation and other modes of transport such as road, rail and air transport thereby contributing significantly to fulfillment of place utility of what our economies produce. That is why it is said, transportation is a key factor for promotion and facilitation of domestic as well as international trade. Much as international ports perform the function of international trade, development of its infrastructure is inevitable.

Maritime ports are a key component of the transport system without which economic development in today’s world is hard to be achieved. World Economic development hinges on international specialization and division of labor which in turn entails exchange relationships among nations. These relationships are increasingly getting more and more important with globalization, which makes interdependence among economies and the instantaneous transportation of goods the life lines of global economics.

The aforementioned theme in question challenges African ports and indeed African nations to tap the tremendous economic potentials that are inherent in the role of ports for facilitation of international trade and for propelling economic development of the continent. Our region is endowed with a vast coastline and inland waterways shores, with a capacity of enhancing and facilitating global trade. Africa and indeed Sub-Saharan Africa is well placed to capitalize on our maritime heritage of having numerous potentials, which if properly developed will enhance trade with far reaching social-economic benefits for our countries and the region at large.

Intercontinental trade, as opposed to intra-continental trade, emphasizes the importance of international ports. According to the United Nations Conference on Trade and Development (UNCTAD), more than 90% of goods worldwide is transported by sea although this varies from one region to another. UNCTAD further notes that overland international transportation is essentially not located in Africa, since the Continent’s major international trade partners are located outside the continent. This is different from Europe and North America where commercial relationships are linked within the continents through a network of well-developed intermodal transport networks. Maritime transport and port services are thus crucial for economic growth potentials in Africa including the region of PMAESA region.

The observation by UNCTAD should not be construed to be undermining the importance of intra-regional maritime transportation and its role in the development of our countries; rather, it underlines the significance of maritime transport to which ports are the nodal links to overland distribution of goods and services. With a view to realizing the best out of African Maritime and Geographical Economy domain, we need to accentuate on strengthening Africa’s internal and regional markets in an attempt to achieve regional integration and creation of sustainable Regional Economic Communities (RECs). The role of ports is not limited to transporting goods as inland waters, oceans and seas but are also useful for other activities of economic and social significance like fisheries, offshore renewable energy activities, tourist activities and aquaculture.

The African Union 2050 Africa’s Integrated Maritime (AIM) Strategy notes that in the maritime domain of Africa, the wide variety of related activities are inter-related to some extent and all have a potential impact on the prosperity derivative through their contribution to socio- economic and political stability as well as safety and security. Therefore, policies of our nations, plans, regulations, management of maritime issues and resources should not be confined to a few sectors or activities.

By and large, the plans of our countries on port development mostly take an economic perspective notwithstanding the above AIM Strategy. The importance of wealth creation to the pursuit of objectives of ports and the wellbeing of our people underlies this phenomenon. As a result, investments in port development in some countries in the region tend to be confined to handling of cargo mostly to carter for international trade. Little serious investment is vivid in serving such areas like fishing, tourist industries or provision of service to the society.

An essential pillar in today’s international maritime trade competitiveness is maritime security. In recent years we have learnt the hard way how insecurity in the maritime trade can hamper and destroy its inherent economic benefits. We need to put forward security initiatives in collaboration with our development partners worldwide that can pre-position African ports for growth through meeting international maritime/port security standards.

Diversity of geographical positions of countries in the region provides countries with coastal lines and those without. Out of 15 SADC Members states, 7 are land linked with each of these countries enjoying access to more than three coastal ports. The 15 economies put together translate into a very huge potential. Despite the huge potential our Maritime economy is still not well developed as more than 70% of our trade with the rest of the World is dependent on foreign owed ships.

Furthermore, trade relations within ourselves are severely constrained by poor inland transport links in terms of roads and rail and numerous institutional challenges like the non-tariff barriers. As a result, transport cost to and from Africa is two and a half times higher than to any other continent. Within Africa itself, the cost is as much as ten times higher.

Through effective regional integration, we stand to jointly enhance the potentials of ports to all countries with coastal line and those without in the region. This entails consideration of mutual economic benefits by all committed cooperation or collaboration among our nations and between the public and the private sector as well. That is to say, the potential of a port to the country is  maximized where it is an attractive option to clients, and in this respect, I wish to emphasize transit clients who assure legitimate use of our ports because they can hardly practice illegal and damaging importations through unofficial routes and ports. Despite numerous attempts to foster cooperation through regional integration, we still face demanding situations signified by such issues like nontariff barriers which are more evident in Africa than in Europe and North America.

Shippers and consignees in Malawi, Zambia, the DR Congo, Burundi, Rwanda, Uganda and Southern Sudan should feel at ease to opt for Dar es Salaam port, for instance. The same should be the case with ports of Mombasa, Beira, Durban and Walvis Bay, among others.Only when this is achieved  will the geographical position of our ports be said to derive the best to nations with sea ports and those without.

Investment in port infrastructure, superstructure, handling equipment, ICT, as well as investments in hinterland connectivity should reckon with these orientations. Our regulations, rules, orders and the likes should equally do the same. We also need to upgrade our road and railway networks in such a manner that will encourage the business community to allocate appropriate cargo to appropriate mode of transport so as to realize long term economic growth and prosperity.

Based on the aforementioned, allow me now to account for some of Tanzanian Government efforts towards this end. Tanzania transport sector’s growth and performance have continued to improve due to both government efforts and private sector investment in road rehabilitation, expansion of telecommunications services, modernization of port infrastructure and services, and improvement in marine, railway and air transport services.

The Government of Tanzania has embarked on a multi-sectorial programme that requires redirection of resources in area which will give results in the quickest way possible. The “Big Result Now” (BRN) programme launched in April 2013 includes initiatives seeking to improve the transport infrastructure and services in the maritime and rail subsectors. In the ports subsector alone about 20 project components valued at US$ 1.6 billion were identified and are available for funding. I ask our colleagues, particularly from the private sector and the donor community in general in the region to participate in financing these projects. PPP Policy, PPP law and Regulations are in place specifically aimed at easing what used to be a difficulty experience for the private sector to participate in projects of public economic interests.

The BRN Program is also envisaged to revitalize significantly the railway performance on the Central Corridor which starts at the port of Dar es Salaam linking it with Burundi, Rwanda, Uganda and North Eastern DRC. The Central Corridor is geared to improve steadily such that within the coming two years it be able to handle more cargo than it has ever done before in its history. The component of Dar es Salaam port seeks to increase the capacity of the port by over 30% within two years which will instantaneously impact positively to the Dar es Salaam Corridor that leads to Malawi, Zambia, and DR Congo.

Whatever we strive to achieve should be based on securing long-term success for our ports so that they can deliver a better service to Africa’s industry, economy and secure their position as cornerstones of the Trans-African Transport Network.

By Honorable Dr. Charles John Tizeba (MP)
Deputy Minister for Transport, The United Republic of Tanzania