TICTS is set to invest over 30bn/- for facility expansion

Ticts chief executive officer, Paul Wallace

The Tanzania International Container Terminal Services Ltd (Ticts) plans to invest at least 30bn/- in 2015 for port facility expansion, including purchasing two new key cranes to match the increasing cargo at the Dar es Salaam port.

 

Ticts chief executive officer Paul Wallace (pictured) said on Wednesday that the buying of the two cranes and the general port infrastructure improvement were part of the firm’s long term investment plans in the country.

 

“The main challenge we see is the increasing number of containers (TEUs), and to cope with the changing business environment, we are working hard to continue investing in the infrastructure,” he said.

 

The facility currently handles around 500,000 TEUs per year, while the number has been growing at 10 per cent annually.

 

The company which is owned by Hutchison Port Holdings (HPH) by 55 per cent handles 75 per cent of Tanzania’s imports and exports.

 

Wallace, who has only six months in the country as the company’s CEO said the container handling firm would invest between $300m and $400m in the next five years to tap the potential to be brought about after the completion of the Central Corridor that also aims at expanding the central line to standard gauge.

 

“Tanzania should look at how to connect the landlocked countries with proper infrastructure system. That is very important because these countries bring in good revenue to the country,” he said.

 

Zambia and Democratic Republic of Congo (DRC) are the leading landlocked countries in using the Dar es Salaam port but a large share of the cargo is transported through roads.

 

Last week, President Jakaya Kikwete led his Rwandan counterpart, Paul Kagame to visit the Ticts premises and they were happy that the facility is now a safe place for businesses.

 

Wallace said it was a good move for the heads of state to pay such a visit and express their confidence on the to continue with business.

Tanzania ports handled 14 million metric tonnes of cargo in 2014 and the target is to reach 18 million tonnes by the end of 2015.

 

The World Bank, Trade Mark East Africa and other partners pledged last year that they will give the port authority $565m for expansion projects.

The port authority plans to dredge berths 1 – 7.