TANZANIA PORTS AUTHORITY

ANNUAL REPORT & ACCOUNTS

FOR THE YEAR ENDED 30TH JUNE, 2013 LETTER OF SUBMISSION

Offi ce of the Director General One Bandari Road Kurasini P.O. Box 9184 Telephone: (255-22)2110401 Fax (255-22) 2-113432 Email: [email protected]

Date: June, 2014

Dear Honourable Minister,

Submission of the 2012/13 TPA Annual Report and Audited Accounts

Pursuant to Section 73 (2) of the Ports Act 2004, I have the honour to submit the 8th Annual Report of the Ports Authority for the fi nancial year ended 30th June, 2013 as adopted by the Board of Directors at its 57th meeting held on 29th December, 2013.

Yours faithfully,

Prof. Joseph Msambichaka CHAIRMAN OF THE BOARD OF DIRECTORS

| ii | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS TABLE OF CONTENTS Pages LETTER OF SUBMISSION ...... ii ABBREVIATIONS ...... iv 1.0 TPA PROFILE ...... 1 2.0 CHAIRMAN’S STATEMENT ...... 2 3.0 CHIEF EXECUTIVE’S STATEMENT ...... 5 4.0 PERFORMANCE REVIEW ...... 10 4.1 Financial Performance ...... 10 4.2 Operational Performance ...... 20 4.3 Individual Ports Performance ...... 22 4.3.1 Dar es Salaam Port ...... 22 4.3.2 Tanga Port ...... 25 4.3.3 Port ...... 27 4.3.4 Small Coastal Ports ...... 28 4.3.5 Port ...... 29 4.3.6 Port ...... 29 4.3.7 Kyela Port ...... 30 5.0 MARKET ANALYSIS ...... 30 6.0 PORT INVESTMENTS ...... 33 7.0 PORT SAFETY, ENVIRONMENT AND SECURITY ...... 34 8.0 HUMAN RESOURCES AND ORGANIZATIONAL DEVELOPMENT ...... 36 9.0 STATISTICAL TABLES ...... 39

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | iii | ABBREVIATIONS

AIDS Acquired Immuno Defi ciency Syndrome BRN Big Results Now CFS Cargo Freight Station CSC Clients Service Charter DT Dwell Time DOWUTA Dock workers Union of Tanzania EWS Exchange Web Services eSWS Electronic Single Window System EPZ Export Processing Zone GRT Gross Registered Tonnage HIV Human Immunodefi ciency Virus ICT Information Communication and Technology ICD Inland Container Depot ISPS International Ship and Port Facility Security Code KOJ Kurasini Oil Jetty MARPOL Maritime Pollution NASACO National Shipping Agency Company OSHE Occupation Safety Health and Environment OSHA Occupational Health and Safety Authority PMP Ports Master Plan PPP Public Private Partnership SPM Single Point Mooring STRT Ship Turnaround Time SOLAS Safety of Life at Sea SOP Standard Operating Procedure SNCC Student Nonviolent Coordinating Committee TAZARA Tanzania- Railway Authority TEU Twenty–Foot Equivalent Unit TICTS Tanzania International Container Terminal Services TPA Tanzania Ports Authority TRL Tanzania Railway Limited TRT Turnaround Time PFSA Port Facilities Security Assessments

| iv | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 1.0 TPA PROFILE

1.1 Introduction TPA was established by the Ports Act No. 17 of 2004 as landlord port authority. It operates a system of ports serving the Tanzania hinterland and the landlocked countries of , Zambia, Democratic Republic of Congo (DRC), , Rwanda and Uganda.

TPA currently performs the role of both a Landlord and Operator with the main objective of promoting effective management and operations of sea and inland waterways ports, provision of services in relation to loading and unloading of cargo and passenger services, developing, promoting and managing port infrastructure and superstructure, maintaining port safety and security and entering into contracts for the purpose of delegating the powers of the Authority (through licensing and concessioning ports services).

TPA administers a diverse system of Tanzania’s Mainland sea and inland water ways (Lake Ports). The major sea ports are Dar es Salaam, Tanga and Mtwara while smaller sea ports are Kilwa, Lindi, Mafi a, Pangani and . The lake ports are: on include Mwanza North and South Ports, Nansio, Kemondo Bay, and : on Lake , are Kigoma and : and on Lake Nyasa are Itungi Port, Kiwira, Manda Liuli and .

1.2 The TPA Vision, Mission and Value Statements

Vision “To lead the regional maritime trade and logistics services to excellence”

Mission “To develop and manage ports that provide world class maritime services and promote excelling total logistics services in Eastern, Central and Southern Africa”

Values “A stable, systematic and caring organization with Integrity/Trust, Stability, Good Governance, Recognition, Customer Care and Team Work”

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 1 | 2.0 CHAIRMAN’S STATEMENT

2.1 Introduction The Authority maintained satisfactory results while pursuing its role of developing, managing and promoting the port sector in Tanzania. The results displayed in the 2012/13 fi nancial year are the fruits of remarkable management changes, which were made to revitalize port operations. Despite the facts that our ports are facing stiff competition, the volume of traffi c is promising a better future of our ports. Both Management and Staff are committed to withstand this competition and maintain its market share as the regional gateway.

2.2 Our Vision and Mission Prof. Joseph Msambichaka Our vision to lead the regional maritime trade and logistics services to CHAIRMAN OF THE BOARD excellence remained unchanged. I am pleased to report that we lived up OF DIRECTORS to our mission which is to develop and manage ports that provide world class maritime services and promote excelling total logistics services in Eastern, Central and Southern Africa. We fulfi lled this mission in an environment of stiff competition with invaluable support of the Government and various stakeholders notably our esteemed port users.

2.3 Outlook Among the major issues that pre-occupied the Board was implementation of the Government’s initiative of Big Results Now (BRN), expansion and modernization of major ports and development of new gateways to the hinterland. It is our expectation that when these initiatives are concluded the benefi ts attained will be to the advantage of the Authority and nation at large. In order to achieve these endeavors, close cooperation between the Board, Management, Stakeholders and the Government will be upheld. During the period under review the Board was constituted with 9 Directors as follows.

Prof. Joseph Msambichaka Chairman Eng. Julius G. Mamiro Vice Chairman Dr. Jabir K. Bakari Director Mr. John R. Ulanga Director Mr. Said S. Sauko Director Ms. Asha K. Nassoro Director Ms. Caroline T. Kavishe Director Dr. Hilderbrand E. Shayo Director Mr. Jaffer Machano Director

| 2 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 2.4 Acknowledgement I am obliged to acknowledge that, none of the achievement could have been made without the concerted efforts of our dedicated Management, staff and the Board’s vision and determination. I commend and appeal to all of them to up-hold their strong sense of loyalty and dedication.

The support and cooperation of our port users is equally crucial to our success and we shall thus continue to espouse our mission, continuously be customer oriented, improve upon our performance and seize every opportunity that arises.

I extend my thanks to the stakeholders including External aid and development Partners and the General Public who continued to give us their patronage.

Prof. Joseph Msambichaka CHAIRMAN OF THE BOARD OF DIRECTORS

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 3 | 2.5 BOARD OF DIRECTORS AS AT 30TH JUNE, 2013

Prof. Joseph Msambichaka CHAIRMAN

Eng. Julius Mamiro Vice Chairman

Dr. Hildebrand Shayo Dr. Jabir Kuwe Bakari Mr. Jaffer Machano Director Director Director

Mr. John Ulanga Mr. Saidi Salum Sauko Ms. Asha Nassoro Director Director Director

Ms. Caroline Temu Kavishe Director

| 4 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 3.0 CHIEF EXECUTIVE’S STATEMENT

3.1 General The Authority’s performance during the year 2012/13 was satisfactory. Port throughput and operating revenue increased by 13.4% and 10.4% respectively.

3.2 Cargo Traffi c During this period, the total cargo traffi c handled at our ports reached 13.727 million tons equivalent to an13.3% increase from the preceding year. Imports were 10.944 million tons, exports were 2.282 million tons, outwards were 0.271 million tons, inwards were 0.127 million tons and transshipment was 0.1 million tons. Dar es Salaam port continued to Eng. Madeni J. Kipande dominate the market share by handling 12.545 million tons or 91.3% of Ag. Director General the total cargo. Tanga port handled a total of 0. 457 million tons or 3.3% of total cargo and Mtwara port handled a total of 0.203 million tons or 1.4% of total cargo. Smaller sea ports of Kilwa, Lindi and Mafi a handled a total of 0.049 million tons or 0.3% of total cargo. Lake ports (Mwanza, Kigoma and Kyela) on the other hand handled 0.472 million tons, or 3.4% of total cargo.

3.3 Financial performance The Authority’s overall operating revenue increased by 10.4% and surplus before tax by 32.8% as compared to the previous year. The operating revenue earned was TZS. 417,316 million and surplus before tax was TZS. 128,281.9 million.

During the period under review, the Authority remained fi nancially sound with current and quick ratios standing at 2.19:1 and 2.17:1 respectively.

3.4 Development program The Authority continued to implement the Ports Master Plan (PMP) 2009-2028 together with the Corporate Strategic Plan (2011/12 – 2015/16) that aimed at the modernization and expansion of ports within the country. Among the key projects that were implemented during this year were; Replacement of Single Point Mooring and Pipeline System at Dar es Salaam port and the Construction of one stop center which is still ongoing. The Authority also managed to procure several ports equipment so as to promote effi ciency.

During this fi scal year the Authority also managed to engage several consultants to carry out Feasibility Studies. Among the Feasibility Studies that were completed are; Development of Port and Economic Zone at Mtwara and Developing a New Port at Mwambani Bay - Tanga.

Despite these achievements, the Authority continued to face a number of challenges, which include inadequate rail services, prolonged dwell time for hinterland cargo, high berth occupancy at the Container

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 5 | Terminal and KOJ at Dar es Salaam port and high turn round time of trucks due to road congestion in Dar es Salaam city and Non Tariff Barriers along the corridors .

As the Authority intends to develop and modernize its ports so as to meet the future demand, it is our expectation that the involvement of the private sector is necessary for funding and expertise.

3.5 Appreciation We pay tribute to the shipping lines, importers and exporters we guarantee superior services through team work. Special tribute to our collaborating partners, the Railways, Ships’ Agents, Customs Authorities and we promise to maintain the good relationships for our mutual benefi ts.

3.6 Conclusion The port industry is becoming more challenging and demanding. We shall endeavor to therefore provide user friendly and value for money services so as to increase our market share. This is achievable since the Authority aims higher, acts professionally and is guided by a set of well formulated corporate goals.

Eng. MMadeni d i JJ. KiKipande d AG. DIRECTOR GENERAL

| 6 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 3.7 Organizational Structure as at 30th June, 2013 TPA

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 7 | 3.8 MANAGEMENT TEAM AS AT 30TH JUNE, 2013

Eng. Madeni J. Kipande Ag. Director General

Jones W. Macha Clemence R. N. Kiloyavaha Apolonia Moshi Ag. Deputy Director General (ID) Ag. Deputy Director General (CS) Ag. Port Manager - Dar es Salaam

Christian Chiduga Gladson N. Urioh Rajah R. Mdoe Personal Assistant to Ag. Director of Planning Director of Finance Director General & Investment

Peter D. Gawile Lucas P. Mganga Alexander M. Ndibalema Francisca K. Muindi Ag. Director of Human Director of Ag. Director of Director of Marketing Resource & Administration Management Services Engineering

| 8 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS Kokutulage Kazaura Johnson Noni Phares Magesa Alhaji Hassan M. Kyomile Ag. Director of Legal Services Director of Internal Ag. Director of Director of Procurement Audit Information Communication & Supplies Technology

Janeth Luzangi Dr. Mkunde S. Mlay Joseph I. Msaki Lazaro Twange Ag. Corp. Communications Chief Medical Offi cer Ag. Director of Ag. Chief of Security Manager Operations

Musa Biboze Modest Kakusa Kassim Chamshama Awadh A. Masawe Chief Fire & Safety Port Master Mtwara Principal Bandari College Port Master Tanga Offi cer

Eng. Johnson Mutalemwa Absalom L. Bohella Sebastian Nandi Port Master Mwanza Port Master Kyela Port Master Kigoma

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 9 | 4.0 PERFORMANCE REVIEW

4.1 Financial Performance During the year ended 30th June, 2013 operating revenue earned by the Authority amounted to TZS. 417,316.0 million. This was higher by TZS. 39,361.2 million or 10.4%, compared to TZS. 377,954.8 million earned in 2011/12.

The Authority’s operating expenditure during the period was TZS. 291,437.2 million as compared to TZS. 283,145.8 million in the year 2011/12. The expenditure was higher by TZS. 8,291.4 million or 2.9%, as compared to 2011/12.

The Authority’s operating surplus before tax was TZS. 128,281.9 million as compared to TZS. 96,567.3 million realized in 2011/12. The increase in surplus was TZS. 31,714.6 million or 32.8%.

Table 1 depicts the fi nancial performance of the Authority during the year in comparison with previous year.

Table 1: Overall Financial Performance Highlights (TZS. Mil)

2012/2013 2011/2012 Net Increase/ % (decrease)

Total Revenue from Operation 417,316.0 377,954.8 39,361.2 10.4

Total Operating Expenditure 291,437.2 283,145.8 8,291.4 2.9

Surplus from Operations 125,878.8 94,808.9 31,069.9

Non-Operating Revenue 11,336.3 11,141.2 195.1 1.7

Non-Operating Expenditure 9,933.2 9,382.9 449.7 4.8

Surplus Before Taxation 128,281.9 96,567.3 31,714.6

Provision for Taxation 17,097.0 23,988.6 6,891.6 28.7

Net Surplus for the Year 111,184.9 72,578.7 38,606.2 53.2

4.1.1 Financial Position and Key Performance Ratios During the year under review, fi nancial position of the Authority has improved as compared to fi nancial year 2011/12 as shown in Table 2.

| 10 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS Table 2: Financial Position (TZS. Mil) 2012/2013 2011/2012 Net Increase/ % (decrease)

Total Non-Current Assets 567,495.9 486,995.0 80,500.9 16.5 Investment in Deposits 169,925.9 84,564.9 85,361.0 100.9 Current Assets 171,400.5 185,284.8 (13,884.3) (7.5) Assets Held for Sale 7.5 39.9 (32.4) (81.2) Total Assets 908,829.7 756,884.6 151,945.1 20.0 Capital and Reserves 658,658.3 570,276.8 88,381.5 15.5 Non-Current Liabilities 171,845.8 149,421.9 22,423.9 15.0 Current Liabilities 78,325.5 37,185.9 41,139.6 110.6 908,829.7 756,884.6 151,945.1 20.0 Average Equity 614,467.6 534,938.1 79,529.5 14.7 Average Total Assets 832,857.2 697,262.7 135,594.5 19.4 Net Working Capital 93,075.0 148,098.9 55,023.9 37.2 Inventories 1,167.0 1,280.1

The above data portray that non-current assets represented 62.4% or TZS. 567,495.9 million of total assets amounting to TZS. 908,829.7 million. During the year 2012/13 the Authority’s non-current assets increased by 16.5% from TZS. 486.995 million in 2011/12 to TZS. 567,495.9 million in 2012/13.

In addition to that, Authority’s performance ratios for the year under review as compared to previous year are shown in Table 3.

Table 3: Key Performance Ratios Profi tability Ratio 2012/2013 2011/2012 2010/2011 Gross Profi t(Surplus from Operations) Margin 30.1% 25.1% 29.1% Net Profi t (Surplus) Margin 26.6% 19.2% 23.7% Return on Assets (ROA) 13.3% 10.4% 12.9% Return on Equity (ROE) 18.0% 13.0% 15.0% Liquidity Ratio Current ratio 2.19:1 4.98:1 2.47:1 Quick Ratio 2.17:1 4.94:1 2.43:1 Net Working Capital Ratio 0.10:1 0.19:1 0.07:1 Activity Analysis Ratio Assets Turnover Ratio 0.50:1 0.54:1 0.55:1 Capital Structure Analysis Ratio Debt to Equity Ratio 0.38:1 0.33:1 0.28:1

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 11 | As depicted from above table, it is evident that profi tability ratios are on the increasing trend as all ratios are above the previous two years whereas liquidity ratios both current and quick ratios have remained sound above standard rates of 2:1 and 2:1 respectively.

4.1.2 Financial Risk The Overall fi nancial risk management focuses on the unpredictable fi nancial markets and it is aimed at minimizing potential effects on the Authority’s fi nancial performance.

The specifi c risk management policies of the Authority are as follows:-

• Liquidity Risk The Authority has a prudent liquidity risk management through maintaining suffi cient and adequate cash and marketable securities to cover committed credit facilities, working capital as well as capital projects requirements.

• Credit Risk The potential credit risk involves short term cash and trade receivables which are managed as follows:-

¾ Short Term Cash Surpluses The Authority deposits her short term cash surpluses with banks of high credit standing at diversifi ed portfolio.

¾ Trade Receivables Regular port service users/customers are required to deposit money in advance to cover services to be rendered. Additional cost of service rendered is settled through normal business transactions through rising of invoices. Irregular port service users/customers are normally required to settle their bills in cash terms.

• Foreign Currency Risk Foreign currency risk is managed at an operational level and is monitored by the Finance Directorate. Losses arising from foreign liabilities are managed through forward contracts.

| 12 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS

To: Chairman, Board of Directors, Tanzania Ports Authority, P.O. Box 9551, DAR ES SALAAM

RE: REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF TANZANIA PORTS AUTHORITY FOR THE YEAR ENDED 30TH JUNE, 2013

Introduction I have audited the fi nancial statements of Tanzania Ports Authority (TPA which comprise the statement of fi nancial position as at 30th June, 2013, statement of comprehensive income, statement of changes in equity and statement of cash fl ows for the year then ended, and a summary of signifi cant accounting policies and other explanatory notes set out from pages 22 to 46 of this report.

Directors Responsibility for the Financial Statements The Board of Directors of Tanzania Ports Authority is responsible for the preparation and fair presentation of these fi nancial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control system relevant to the preparation and fair presentation of fi nancial statements that are free from material misstatements, whether due to fraud or errors; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Responsibilities of the Controller and Auditor General My responsibility as auditor is to express an independent opinion on the fi nancial statements based on the audit. The audit was conducted in accordance with International Standards on Auditing (ISA) and International Standards of Supreme Audit Institutions (ISSAI) and such other audit procedures I considered necessary in the circumstances. These standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depended on auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the Authority’s preparation and fair pre- sentation of the Financial Statements in order to design audit procedures that were appropriate in the circum- stances, but not for the purpose of expressing an opinion on the effectiveness of the TPA’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 13 | In addition, Sect. 10 (2) of the PAA No. 11 of 2008 requires me to satisfy myself that the fi nancial statements have been prepared in accordance with the appropriate accounting standards and that; reasonable precau- tions have been taken to safeguard the collection of revenue, receipt, custody, disposal, issue and proper use of public property, and that the law, directions and instructions applicable thereto have been duly observed, expenditures of public monies have been properly authorized.

Furthermore, Sect. 44(2) of the Public Procurement Act No.21 of 2004 and Reg. No. 31 of the Public Pro- curement (Goods, Works, Non-consultant services and Disposal of Public Assets by Tender) Regulations of 2005; requires me to state in my annual audit report whether or not the auditee has complied with the provi- sions of the Law and its Regulations.

I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my audit opinion.

Unqualifi ed Opinion In my opinion the fi nancial statements give a true and fair view of the fi nancial position of the Tanzania Ports Authority as at 30th June, 2013, its fi nancial performance and its cash fl ows for the year then ended in ac- cordance with International Financial Reporting Standards and comply with the Ports Act, No. 17 of 2004.

Emphasis of Matter

I draw attention to note 30.0 that the Authority has litigation proceedings fi led before the court of law by M/s Mvita Construction Company which could result in the Authority suffering material losses of approximately TZS 337.7 billion (a proposed sum in the arbitration). In addition the Authority has other pending law suits in various courts of law of TZS 20.6 billion (2011/12: TZS 20.05 billion) the outcomes of which are not certain.

Also the Authority has unresolved disputed Corporation Tax Assessments pending at Tax Appeals Board amounting to TZS 75.5 billion.

Report on Other Legal and Regulatory Requirements

Compliance with Procurement Laws

In view of my responsibility on the procurement legislation, and taking into consideration the procurement transactions and processes reviewed as part of this audit, Tanzania Ports Authority has not complied with the provisions of the Public Procurement Act, 2004 and its related Regulations of 2005 in the following areas:-

(i) Advance Payment to Toyota (TZ) – TZS 1.3 billion

| 14 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS Shortfalls of the procurement include; Advance payment to Toyota (TZ) which contravened Regulation No.122 G.N 97 of Public Procurement Regulations, 2005; Payment was made prior to signing contract agreement; and failure to inspect 25 units of the delivered motor vehicles.

(ii) Prolonged Procurement Process led to Diversifi cation of the Project Fund by World Bank

The World Bank diverted Project Funds amounting to US $ 54,634 (TZS equivalent 88,215,880.78) to another interested party because TPA prolonged procurement process.

(iii) Supply of Fuel to Mtwara Port not Supported by Contract Agreement.

Ludovick S. L. Utouh CONTROLLER AND AUDITOR GENERAL

Offi ce of the Controller and Auditor General, The National Audit Offi ce, P. O. Box 9080, DAR ES SALAAM.

Date: 31st December 2013

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 15 | STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, 2013

30.06.2013 30.06.2012 ASSETS NOTE TZS. TZS. Non-Current Assets Property, Plant and Equipment – Sea Ports 3(A) 496,060,214,348 416,120,897,169 Intangible Assets 3(A) 2 2 Property, Plant and Equipment on Lease to TICTS 3(B) 36,601,489,329 37,724,437,061 Property, Plant and Equipment – Lake Ports 3(C) 34,515,050,237 32,817,636,473 Investment Property – Buildings 3(D) 319,097,865 331,998,741 567,495,851,781 486,994,969,446 Investments in Deposits and Securities 4 169,925,906,422 84,564,917,886 737,421,758,203 1,058,554,856,778

Current Assets Inventories 5 1,167,046,660 1,280,126,860 Trade and Other Receivables 6 22,458,362,779 22,058,437,248 Prepayments 7 14,503,088,433 35,954,536,292 Provision for Taxation 16 18,343,404,876 4,010,426,265 Cash and Cash Equivalents 8 114,928,572,593 121,981,302,750 171,400,475,341 185,284,829,415 Assets Held for Sale 9 7,451,821 39,911,957 Total Assets 908,829,685,365 756,884,628,704 EQUITY AND LIABILITIES Capital and Reserves Capital Fund 10 31,845,048,833 31,845,048,833 Revaluation Reserve 11 203,913,585,079 204,090,880,667 Non-Current Assets Replacement Fund 4 35,508,456,109 33,795,081,961 Self-Insurance Fund 4 563,176,406 521,928,585 Accumulated Comprehensive Income 12 386,828,056,710 300,023,863,878 658,658,323,137 570,276,803,924 Non-Current Liabilities Long Term Loans 13 98,201,246,699 100,335,321,967 Deferred Tax Liability 14 73,644,576,678 49,086,576,451 171,845,823,377 149,421,898,418 Current Liabilities Trade and Other Payables 15 61,962,566,986 27,560,057,165 Current Maturity of Long Term Loans 17 16,362,971,865 9,625,869,197 78,325,538,851 37,185,926,362 Total Equity and Liabilities 908,829,685,365 756,884,628,704

………………………………..…………… ………… ……………………………………………………………… CHAIRMAN DIRECTOR

DATE:: ……………………………….

| 16 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED ON 30TH JUNE, 2013

2012/2013 2011/2012 INCOME NOTE TZS. TZS. Operating Revenue 18 390,719,316,943 357,061,277,373 Fixed Rental Income 18A 11,028,620,872 10,545,189,880 Royalty 18B 15,568,067,156 10,348,286,171 417,316,004,971 377,954,753,424 Less: Operating Expenditure Salaries and Staff Benefi ts 19 143,090,776,119 132,418,309,679 Maintenance Expenses 20 19,641,889,952 26,162,131,055 Operating Expenses 21 47,893,447,491 49,005,221,269 General and Administrative Expenses 22 48,307,964,905 50,028,828,334 Depreciation and Amortization 28,824,298,008 24,202,518,148 Financial Expenses 3,678,823,104 1,328,831,603 291,437,199,579 283,145,840,088 Surplus/(Defi cit) From Operations 125,878,805,392 94,808,913,336 Non –Operating Revenue 23 11,336,260,219 11,141,217,370 Other Comprehensive Income Gain/(Loss) on Exchange Rates Fluctuations 24 1,052,845,147 2,517,893,291 Gain/(Loss) on Disposal of Assets held for Sale 25 28,124,390 (1,588,765,114) Non-Current Assets Written Off (14,130,000) (311,998,364) Contribution to the Government Basket Fund (10,000,000,000) (10,000,000,000) (8,933,160,464) (9,382,870,187) Surplus/(Defi cit) For The Year Before Taxation 128,281,905,147 96,567,260,519 Provision for Corporation Tax (17,097,007,676) (23,988,550,179) Net Comprehensive Income for the Year 111,184,897,471 72,578,710,340

………………………………..……… …………………… …………………………………………………………… CHAIRMAN DIRECTOR

DATE: …………………………………….……………… ……… …

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 17 | STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE, 2013

Capital Revaluation Fixed Assets Accumulated Total Fund Reserve Replacement Surplus/ and Self (Defi cit) Insurance Fund TZS.’000’ TZS.’000’ TZS.’000’ TZS.’000’ TZS.’000’ Balance on 30/06/2009 30,385,049 212,379,358 25,575,849 102,501,797 370,842,053 Adjustment on Disposed Properties (6,558,178) 6,558,178 Deferred Tax Adjustment (1,188,557) (1,188,557) Terminal Benefi ts to Contract 1,157,733 1,157,733 Employees Employees Leave Benefi ts 21,342 21,342 Capital Fund Contribution 260,000 260,000 Investments/Increase in Funds 2,724,079 2,724,079 Surplus/(Defi cit) for the Year 40,346,633 40,346,633 Balance on 30/06/2010 30,645,049 205,821,180 28,299,928 149,397,126 414,163,283 Adjustment on Disposed Properties 1,446,227 1,446,227 Deferred Tax Adjustment 6,615,911 6,615,911 Capital Fund Contribution 1,200,000 1,200,000 Investments/Increase in Funds 5,175,937 5,175,937 Surplus/(Defi cit) for the Year 72,444,226 72,444,226 Balance on 30/06/2011 31,845,049 204,374,953 33,475,865 229,903,490 499,599,357 Adjustment on Disposed Properties (284,072) 284,072 Deferred Tax Adjustment (2,742,409) (2,742,409) Investments/Increase in Funds 841,145 841,145 Surplus/(Defi cit) for the Year 72,578,711 72,578,711 Balance on 30/06/2012 31,845,049 204,090,881 34,317,010 300,023,864 570,276,804 Adjustment on Disposed Properties (177,296) 177,296 Deferred Tax Adjustment (24,558,000) (24,558,000) Investments/Increase in Funds 1,754,622 1,754,622 Surplus/(Defi cit) for the Year 111,184,887 111,184,887 Balance on 30/06/2013 31,845,049 203,913,585 36,071,632 386,828,057 658,658,323

………………………………..……… …………………… ……………………………………………………………… CHAIRMAN DIRECTOR

DATE:E: …………………………………….…………………

| 18 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS STATEMENT OF CASH FLOW FOR THE YEAR ENDED ON 30TH JUNE, 2013

2012/2013 2011/2012 CASH FLOWS FROM OPERATING ACTIVITIES TZS. TZS.

Revenue Generated NOTE 26 412,133,296,989 359,568,679,494 Payments Made NOTE 26 (192,047,103,859) (243,983,955,546) Cash Generated From Operations 220,086,193,130 115,584,723,948 Corporation Tax Paid (31,269,986,287) (36,359,816,495) Net Cash From Operating Activities A 188,656,206,843 79,224,907,453

Cash Flows From/(Used in) Investing Activities Proceeds from Disposal of Assets Held for Sale 67,240,400 351,999,136 Interest Income 5,527,825,912 4,202,383,195 Investments in Capital Work in Progress (59,181,807,693) (77,854,030,928) Acquisition of Property, Plant and Equipment (9,228,997,753) (3,279,580,755) Investment in Self Insurance Fund (41,247,821) (16,786,201) Investment in Bank Fixed Deposits (83,493,886,303) 63,253,389,063 Movement/Investments in Non-Current Assets Replacement Fund (1,713,374,148) (824,359,121) Investments in Capital Goods in Transit (42,016,299,021) (19,885,863,363) Net Cash Flows From/(Used in) Investing Activities B (190,080,546,427) (34,052,848,974)

Cash Flows From/(Used in) Financing Activities Loans Received 9,664,912,581 50,116,574,695 Customers Deposits 4,751,998,888 0 Loans Repaid (10,045,302,042) (4,289,143,443) Contribution to the Government (10,000,000,000) (10,000,000,000) Net Cash Flows From/(Used in) Financing Activities C (5,628,390,573) 35,827,431,252

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS A+B+C (7,052,730,157) 80,999,489,731 Cash and Cash Equivalents at the Beginning of the Year 121,981,302,750 40,981,813,019 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 114,928,572,593 121,981,302,750

………………………………..………………………… ……………………………………………………………… CHAIRMAN DIRECTOR

DATE: ……………………………….…………… ………………

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 19 | 4.2 OPERATIONAL PERFORMANCE

4.2.1 Corporate Traffi c Performance During 2012/13, the ports handled total cargo traffi c of 13.727 million tons as compared to 12.115 million tons handled in 2011/12. This is an increase of 1.612 million tons or 13.3%. Cargo traffi c handled in 2012/13 comprises of dry bulk 1.992million tons; break bulk 6.877 million tons; liquid bulk 4.357 million tons, inwards 0.127 million tons, outwards 0.271 tons and Transshipment 0.100 million tons.

The overall imports were 10.944 million tons as compared to 9.582 million tons handled in 2011/12, which is an increase of 1.317 million tons or 13.4%. Exports increased from 2.141 million tons to 2.282 million tons, or 7.5%. Comparing to the year 2011/12 except transhipment cargo handled in 2012/13 increased for each category as depicted in Chart 1A & 1B.

Chart.1A: Cargo Traffi c handled by type

Chart.1B: Imports and Exports

| 20 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS The principal port of Dar er Salaam handled 12.53 million tons or 91.3%, Tanga port 0.457 million tons or 3.3%, Mtwara port handled 0.203 million tons equivalent to 1.4% of the total traffi c handled. The smaller sea ports of Kilwa, Lindi and Mafi a handled 0.049 million tons which is 0.3% of the total cargo.

Lake ports handled a total of 0.472 million tons equivalent to 3.4% of all cargo handled. Cargo handled during this period increased from 305,468 tons in 2011/12 to 472,385 tons in 2012/13 by 30.9%. Mwanza port handled 360,891 tons Kigoma port handled 81,880 tons and Kyela port handled 29,614 tons.

4.2.2 Container Traffi c During the period under review, container traffi c handled at major coastal ports were 585,585 TEUs as compared to 545,150 TEUs in 2011/12. This was an increase of 40,435 TEUs or 7.4%. Container imports, exports and transshipments for the year 2012/13 was 294,449 TEUs, 283,654 TEUs and 7,482 TEUs respectively as compared to 280,579 TEUs, 254,972 TEUs and 9,599 TEUs in 2011/12 as depicted in Chart 1C. TICTS and General Cargo Terminal handled 399,961 TEUs and 153,091 TEUs respectively as compared to 342,712 TEUs and 164,473 TEUs in 2011/12. Tanga and Mtwara ports handled 10,442 TEUs and 14,609 TEUs respectively, compared to 11,764 TEUs and 16,601 TEUs respectively. This is a decrease of 11.2% and 12% respectively.

Chart.1C: Containers Traffi c

4.2.3 Shipping Traffi c The major sea ports received a total of 2,125 ship calls with 27.788 million GRT which comprised of 962 calls for international going vessels (deep sea vessels) with 26.475 million GRT and 1,163 calls of coastal plying vessels (Coasters) with 1.313 million GRT.

When compared to 2011/12 shipping traffi c, calls by deep sea ships have decreased by 78 from 1,040 to 962 calls, equivalent to 7.5% while GRT increased by 0.462 million, from 26.013 million to 26.475 million. This shows that the average vessel size in terms of GRT has increased by 1.7% despite of decrease of ship calls by 7.5%. Chart 2 depicts ship calls and capacity.

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 21 | Chart 2: Ship calls and Capacity (GRT)

4.2.4 Passenger Traffi c During the period under review a total of 1,804,521 passengers were handled of whom 927,960 embarked and 876,561 disembarked. Compared to the 2011/12, the number of passengers handled at the ports has decreased by 5.6% from 1,913,479 in 2011/12. Chart 3 shows number of passengers.

Chart 3: Passenger Traffi c

4.3 INDIVIDUAL PORTS PERFORMANCE

4.3.1 Dar es Salaam Port

Dar es Salaam port has intrinsic capacity of 11.0 million tons per annum. The port handles over 90% of the total maritime ports’ throughput. The port serves land linked countries of Malawi, Zambia, Democratic Republic of Congo, Rwanda, Burundi and Uganda. These countries are connected to the port through two railway systems (TRL-1.0 metre gauge and TAZARA-1.067 cape gauge), road network as well as TAZAMA pipeline to Zambia.

| 22 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 4.3.1.1 Cargo Traffi c During the year 2012/13, the port handled a total of 12.545 million tons of cargo equivalent to 114% of its capacity utilization. Cargo handled increased by 1.646 million tons or 15.1% compared to 10.898 million tons handled in 2011/12. Out of total cargo handled 10.443 million tons were imports and 2.001 million tons were exports while 101,041 tons were transshipment as depicted in chart 4.

Chart 4: Imports and Exports Cargo Traffi c – DSM Port

4.3.1.2 Transit Traffi c Transit cargo handled at the port was 4,063,180 tons as compared to 3,172,306 tons in 2011/12, which is an increase of 890,874 tons, equivalent to 28.08%. Chart 5a & 5b show transit traffi c and ratio between local and transit cargo handled at Dar es Salaam Port.

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 23 | Chart 5a: Transit Cargo Traffi c – DSM Port Chart 5b: Ratio between Local and Transit Cargo 2011/12

4.3.1.3 Shipping Traffi c During the year under review, the port received a total of 1,366 calls with GRT of 24,860 million. Compared to 2011/12, the number of calls has decreased by 61 ships and GRT increased by 0.542 million. Chart 6 shows shipping traffi c and GRT for the port.

Chart 6: Ship calls and Capacity – DSM Port

4.3.1.4 Passenger Traffi c The port handled a total of 1,373,146 passengers of whom 706,286 and 666,860 were embarked and disembarked respectively. The number of passengers handled has increased by 30,271 equivalents to 2.25% as compared to 1,342,875 passengers handled in 2011/12. This is represented in chart 7 below.

| 24 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS Chart 7: Passenger Traffi c - DSM Port

4.3.1.5 Port Productivity

a) General Cargo Terminal Productivity at the General Cargo Terminal is measured in terms of tons per gang/shift for break bulk and dry bulk, units of motor vehicles per shift/motor vehicles and moves/24hrs for containers. Productivity for this reporting period compared to that of the year 2011/12 is as depicted in Table 3.

Table 3: Productivity Achievements at General Cargo - DSM Port Cargo Type 2011/12 2012/13 Break Bulk (Tons/Gang/Shift) 317.8 347.3 Dry Bulk (Tons/Gang/Shift) 686.8 674.2 Vehicles (Units/Shift) 342.8 673.1 Container (moves/24Hrs) 130 244

b) Container Terminal Productivity at Container Terminal (TICTS) moves per ship to shore gantry crane (SSG) was 458 compared to 460.8 in 2011/12 per 24 hours.

4.3.2 Tanga Port 4.3.2.1 Cargo Traffi c During the year 2012/13 the port handled a total of 457,537 tons below 644,354 tons of 2011/12 by 186,817 tons equivalent to 29%. Imports and exports were 344,713 tons and 112,824 tons respectively. Compared to cargo handled in 2011/12, imports and exports have decreased by 25.5% and 37.9% respectively. Container traffi c handled was 11,922 TEUs as compared to 11,262 TEUs. This is an increase of 660 TEUs or 5.9%. Chart 8 below depicts cargo types handled by the port.

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 25 | Chart 8: Cargo Traffi c handled – Tanga Port

4.3.2.2 Shipping Traffi c The port received a total of 197 calls with GRT of 1.521 million. Compared to 2011/12, ship calls were 212 with GRT of 1.568 million a decrease of 409 calls and a GRT of 0.047 million in 2012/13 which is equivalent to 7.1% of calls and 3% GRT respectively. Chart 9 shows the overall number of calls and GRT handled at the port.

Chart 9: Ship calls and Capacity – Tanga Port

4.3.2.3 Productivity Productivity for general cargo and dry bulk was 200.9 and 423.9 tons/gang/shift compared to 208.4 and 400.4 tons/gang/shift in 2011/12, which is a decrease of 3.6% and increase of 5.85%.

| 26 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 4.3.2.4 Passenger traffi c During the period under review the port handled a total of 7,730 passengers of whom 3,695 and 4,035 were embarked and disembarked respectively. The number of passengers handled at the port decreased by 5,017 or 39.36% as compared to 12,747 of 2011/12.

4.3.3 Mtwara Port

4.3.3.1 Cargo Traffi c The port handled a total of 203,644 tons compared to 235,076 tons of 2011/12. This is a decrease of 31,432 tons or 13.4%. Imports and exports handled were 64,815 tons and 138,829 tons respectively, which also show a decrease of 15,944 tons and 15,488 tons respectively as depicted in Chart 10.

During the period under review, container traffi c decreased by 1,992 TEUs from 16,601 TEUs handled in 2011/12 to 14,609 TEUs handled in 2012/13.

Chart 10: Cargo Traffi c Mtwara Port

4.3.3.2 Shipping Traffi c The port received a total of 562 calls with GRT of 1.407 million. Compared to 2011/12 shipping traffi c has increased by 451 calls and GRT by 0.710 million. Chart 11 shows the overall number of ships handled and vessel capacities called at port.

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 27 | Chart 11: Shipping Traffi c and Capacity – Mtwara Port

4.3.3.3 Productivity Productivity per gang per shift for general cargo was 151.3 tons in 2012/13 as compared to 117.8 tons attained during 2011/12.

4.3.4 Small Coastal Ports

Small ports of Kilwa, Lindi and Mafi a handled 9,913, 2,726 and 36,509 tons respectively. Compared to 2011/12 Lindi and Mafi a ports cargo traffi c increased by 696 and 29,364 tons respectively. While Kilwa cargo traffi c decreased by 13,257 tons. Chart 12 shows the performance of small ports.

Chart 12: Cargo Traffi c – Small Ports

4.3.5 Mwanza Port

The port handled a total of 360,891 tons compared to 210,284 tons handled in 2011/12 an increase of 150,607 tons or 71.6%. Cargo handled was 790 tons for imports, 1,600 tons for exports, 96,235 tons for

| 28 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS inwards and 262,266 tons for outwards. Comparing to 2011/12, imports and exports cargo decreased by 86% and 78% while outwards and inwards cargo increased by 134% and 12% respectively as depicted in Chart 13.

Chart 13: Cargo traffi c – Mwanza Port

4.3.6 Kigoma Port

The port handled a total of 81,880 tons compared to 73,253 tons handled in 2011/12 an increase of 8,627 tons or 11.7%. Cargo handled was 46,539 tons for imports, 19,222 tons for exports, 7,394 tons for inwards and 8,725 tons for outwards. Comparing to 2011/12, imports, outwards and inwards cargo increased by 12%, 119% and 18 while exports decreased by 55% as depicted in Chart 14.

Chart 14: Cargo traffi c - Kigoma Port

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 29 | 4.3.7 Kyela Port The port handled a total of 29,641 tons compared to 21,931 tons handled in 2011/12 an increase of 7,760 tons or 35.4%. Cargo handled was 5,200 tons for exports, 23,513 tons for inwards and 901 tons for outwards. Comparing to 2011/12, exports and inwards cargo increased by 87.3% and 29.4% while outwards cargo decreased by 1.9% as depicted in Chart 15.

Chart 15: Cargo traffi c – Kyela Port

5.0 MARKET ANALYSIS

During the year, TPA continued to undertake several initiatives to address the changing needs of port users, new market prospects and increasing competition. The Authority worked relentlessly to market its services and track the transport corridors’ performance and utilization in which a competitive port performance is founded.

The changing business environment and globalization continued to expose TPA ports to stiff competition especially the which competes with the port of Mombasa in the North for cargoes originating and destined to Uganda, Rwanda, DRC (Kivu Province), Northern part of Tanzania and South Sudan. To its South, Dar port competes with Mozambican ports of Nacala, Beira and Maputo and South African port of Durban for Zambia, Malawi and DRC (Katanga Province) cargoes. In the West, it competes with Namibian port of Walvis Bay and Angolan port of Lobito for Zambia and DRC (Katanga Province) traffi c.

The Authority in collaboration with all Stakeholders in the transport sector embarked on various marketing campaigns to keep its clientele informed about the improvement of the existing infrastructure and development of new ones for provision of value for money services. In the year 2012/13, TPA strived to create the customer-serving vision through commitment to meeting customers’ needs and wants as well as winning their business for continued growth and profi tability of the Authority.

| 30 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS Market Segments TPA ports serve its mother country –Tanzania and the neighbouring countries of Zambia, DRC, Malawi, Burundi, Rwanda, Uganda, Comoro and Zimbabwe. South Sudan and Northern are potential market segments in the near future. These countries have a total area of about 4.5 million square km and population of over 160 million with total estimated annual seaborne traffi c of over 20 million tons. The Shipping Lines which are represented by some Shipping Agents under the umbrella of Tanzania Shipping Agents Association constitute another important market segment for TPA ports.

5.1 Tanzania Tanzania contributed close to 67% of Dar es Salaam port’s traffi c in 2012/13 while 33% of the total traffi c handled came from the landlinked countries. Given the prevailing hyper competition between the port of Dar es Salaam and Mombasa in Kenya, some seaborne traffi c for the Lake Zone and Northern part of Tanzania were being shipped through the port of Mombasa. This implies that the domestic market was no longer fully captive, in the sense that not all imports and exports for Tanzania were being shipped either through Dar es Salaam, Tanga or Mtwara ports.

5.2 Zambia The economic prospects of Zambia continued to improve being supported by high copper output and prices, recovery in agricultural production and sustained growth in the construction and tourism sectors.

During the year under review, Zambia was the major user of Dar es Salaam port among the landlinked countries and contributed 15.8% of the total traffi c and 45% of the total transit traffi c. The major export traffi c from Zambia is copper and the major import commodities are fertilizer and crude petroleum through the SPM. The competition for copper exports was very intense as Dar es Salaam port handled a total of 279,000 tons (40%) out of over 0.7 million tons of total copper exports per annum. TAZARA is the major link to this market and distance-wise is shorter by 700 km from the Copper belt to Dar es Salaam when compared to South African ports. Performance of TAZARA is critical to Dar es Salaam Port’s success in this market segment.

5.3 Democratic Republic of Congo The DRC economic prospects are expected to improve given the continuous recovery in agricultural production, attained peace in the Kivu Province and growth in the mining sector. During the year under review, DRC contributed 8.2% of the total traffi c and 24% of transit traffi c. DRC is potentially a rich country capable of producing more traffi c for Dar es Salaam port because of its abundant mineral wealth. Dar es Salaam route is well positioned to handle this wealth once exploitation starts. There is a good railway network from Lubumbashi to Ndola in Zambia where it connects to New Kapiri Mposhi linking it with TAZARA to Dar es Salaam.

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 31 | The key to success in this market hinges upon an improvement in wagons and locomotives availability by TAZARA, Congolese Railways (S.N.C.C) and Zambia Railways. The other existing link to DRC is via at Kigoma port and then by TRL to Dar es Salaam. The on-going improvement of TRL services and the construction of Isaka to Kigali/Msongati railway will attract more traffi c for TPA ports. Another shortest route is being proposed through the ports of Goba in DRC and Karema/Kipiri in Tanzania for onward connection by road/rail through Mpanda to Dar es Salaam. TPA intends to team up with the government authorities in Tanzania and DRC to explore the viability of this route given its potential to provide a single border crossing for the Katanga Province.

5.4 Burundi Burundi is a stronghold of Dar es Salaam port which commands over 85% of its seaborne traffi c and it remained an important market segment for the port because Dar es Salaam is the natural port for Burundi. A total of 2.6% of the total traffi c and 8% of transit traffi c was contributed by Burundi in 2012/13. Dar es Salaam port is well connected by rail up to Kigoma Port whereby goods are ferried to Bujumbura port by barges. Also there is a road link to Bujumbura through the Isaka Dry Port. In the near future, Burundi would also be using the railway services all the way from the port of Dar es Salaam to Bujumbura once the Dar es Salaam-Isaka-Keza/Kigali-Musongati railway project is completed.

In the long term, the future prospects for this market segment are very bright as the mining activities are projected to generate more exports when the Kabanga nickel mine (reserves are projected at 58 million tons in total) starts production in the future.

5.5 Malawi Imports of petroleum products from Malawi continued to dominate the traffi c going to Malawi which contributed 0.8% of the total traffi c and 2% of transit traffi c. The volume of both dry and liquid cargo to and from Malawi through the port of Dar es Salaam continued to decline. The failure of Dar es Salaam port to attract Malawi traffi c is mainly on account of its proximity to Mozambican ports of Nacala and Beira which offer cheaper total route costs, given the shorter physical distance of 807km to Nacala (from Lilongwe) by rail as compared to 1,670 km to Dar es Salaam port by road.

5.6 Rwanda A total of 5.4% of the total traffi c and 16% of transit traffi c were contributed by Rwanda. The economic growth for this country is expected to increase even further given the existing economic development programs. Border logistics favors Dar es Salaam because of a single border crossing, shorter physical distance of 1,462 km through Isaka as compared to 1,740 km for the Northern Corridor. The on-going efforts to revamp the railway sector by extending the Central Railway line to Kigali/Keza and Gitega/ Musongati and upgrading it to the standard gauge up to Dar es Salaam would provide a reliable link between Isaka and Bujumbura/Kigali providing access to Dar es Salaam port, leading to attraction of more cargo.

| 32 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 5.7 Uganda Uganda contributed less than 1.6% of the total traffi c and 5% of transit traffi c. The main weakness in this market is the longer physical distance of about 600 km farther in comparison with the Northern Corridor and the constrained inland transport system.

The key to success in this market hinges upon an improvement on the inland transport especially rail and lake transport and availability of competitive road transport rates. TPA in conjunction with other key stakeholders is determined to work even harder and tap into this growing market since it also provides Uganda another reliable route to the sea which is required for Uganda’s international trade. TPA in collaboration with key stakeholders is determined to attract more Ugandan traffi c for Dar es Salaam port. To this effect, an MoU was signed on 25/01/2013 between the Governments of the United Republic of Tanzania and the Republic of Uganda. Both parties are working together to implement it with a view to attract more Ugandan traffi c for Dar es Salaam and Mwanza ports.

The on-going improvement of TRL services and the resumption of MV Kaawa- a Ugandan vessel in September 2012 after its rehabilitation and the availability of MV Umoja increased the capacity on Lake Victoria. TPA continued to urge the Government authorities in Uganda and Tanzania to improve the railway services and rehabilitate wagon ferries as the key to success in the Uganda market hinges upon an improvement in wagons and ferry availability.

6.0 PORT INVESTMENT

One of the mandate of the Authority as stipulated in the ports Act of 2004 is to develop and manage ports in the country. In order to make this obligation, the Authority has in place the Ports Master Plan (PMP) and Corporate Strategic Plan covering the period of 2011/12 – 2015/16 which provide guidelines on the level of investment required to meet the current and future port demands.

During the year 2012/13, the Authority spent a total amount of TZS. 112,140.478 million to fund ports infrastructure and equipment projects as compared to a total amount of TZS. 114,187.700 million spent in 2011/12.

6.1 Ports Infrastructure During the period under review, the following ports projects were completed:- (i) Replacement of Single Point Mooring and Pipeline System at Dar es Salaam port, (ii) Paving ex-AMI yard (iii) Modernization and installation of SSG at berth no.8,

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 33 | 6.2 Equipment Acquired (i) Six Fork Lifts trucks with 3Tons, 5Tons and 42Tons, (ii) Crawler Crane for Kiwira Port, (iii) Two movable weighbridges of 100 Tons capacity for Grain Terminal, (iv) Reach stacker for Mtwara Port, two Terminal Tractor of 40 Tons pull for Mtwara Port, (v) Container Spreader with capacity 40 tons for Mtwara Port, (vi) Dumper Truck for Mwanza Port, (vii) Pilot Boat for Mtwara Port, (viii) Three Transportable Hoppers with 30 Tons for Grain Terminal at DSM Port and Tanga Port, (ix) Four Grabs with 15 tons for Grain Terminal, (x) Empty Container Handlers with 5 high for Mtwara Port, (xi) Mobile Crane with 25 Tons for clinker handling for Kilwa Port, (xii) Two Mobile Cranes with 25 Tons for Bukoba and Mwanza Ports, (xiii) Three Buoys with solar lightning System for hydrographic survey one Green and two Red, (xiv) Standby Generator for Bandari College, (xv) Trailer Pumps for Mtwara Port, (xvi) Four Passenger landing pontoons for DSM Port, (xvii) Small Wheel Loader for Kilwa Port and one Fire Tender for Tanga Port.

6.3 On going Projects Major projects which were still on-going and overlapping to the next fi nancial year 2013/14 include: (i) Integrated Security System - ISPS Code for Sea ports, (ii) Construction of Offi ce Block on Sokoine Drive for one stop shop, (iii) Design and construction of Mafi a Jetty in Mafi a Island, (iv) Construction of Kiwira Jetty in Lake Nyasa and Lake Tanganyika Jetties (Kagunga, Kipiri, Karema, Kalya/Sibwesa and Lagosa).

7.0 Port Safety, Environment and Security

7.1 Port Fire and Safety

The Authority has a dedicated industrial fi re brigade services which respond promptly to fi re incidents and other emergency calls in the ports and other areas with intention of saving lives of the people, properties and cargoes of the customer. In ensuring the emergency services are undertaken in a robust and swift way, the Authority has also developed the Dar es salaam Port Emergency response Plan and Local Marine Oil Contingency Plan to set the procedures for coordinating response effort from different port departments, agencies and other stakeholders during the emergency.

During the period under review a total of 43 fi re incident calls, 431 other accident and 1,267 services were attended/ rendered in Dar es Salaam, Tanga and Mtwara Ports.

| 34 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 7.2 Environmental Management TPA is developing environmental management system compatible with ISO 14001:2004 and in accordance with Environmental Management Act (EMA 2004) for sustainable management of port environment.

During the period under review the focus was on the following major areas (i) Prevention of Pollution / waste minimization. (ii) To ensure compliance with local and International policies and Regulations as a mnimum perfomance standard and conduct regular and / surprise inspection. (iii) Environmental management based on principles of continous improvement. (iv) To ensure adequate resources for effective environmental management. Generally the port environment has improved to a greater extent.

Furthermore, TPA managed to disseminate environmental informations by conducting awareness training to the employees using internal workforce on World climate change, Ozone depleting substances in compliance with Ozone Depleting Substances Regulation (ODS Regulation 2007).

7.3 Port Security

During the year 2012/13, the overall security status of TPA Ports has signifi cantly improved. The number of containers theft/incidents cases reported has decreased from 30 cases in 2011/12 to 0 (zero) case in 2012/13, and 21 theft incidents of motor vehicle parts in the year 2011/2012 and 6 theft incidents in the year 2012/2013 respectively. This is an achievement to the Authority towards crime prevention and was as a result of “zero tolerance declaration” by the Management to anyone/staff caught in connection to theft incident. Use of incentives to informants, community policing to port staff and other stakeholders. Training of Auxiliary Police Offi cers/guards (147) in different skills which had positive impact on change in behavior and a total commitment to duty.

Table 3: Security incidents for 2012/2013 - Dar es Salaam Port S/NO. INCIDENTS 2011/2012 2012/2013 1. Theft of motor vehicle parts 21 6 2. Attempted theft NIL 6 3. Trespass 19 2 4. Stowaway 1 1 5. Illegal/Migrants NIL NIL 6. Piracy NIL NIL 7. Possession of Narcotics 3 2 8. Fraud )Forgery) 1 5

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 35 | ISPS REQUIREMENTS

During the period under review, the Authority carried out the following activities in order to abide with the ISPS Code requirements: (i) Port Facilities Security Assessments (PFSA’s) for Kilwa and Mtwara Ports, and Port facilities Security Plans for the same as well. (ii) Internal Security Audits for Dar es Salaam, Tanga and Mtwara Ports. (iii) Review of the Port Security Plans (with a new format by the US Coast Guard) for three facilities under Dar es Salaam Port.

8.0 HUMAN RESOURCES AND ORGANIZATIONAL DEVELOPMENT

8.1 Labourforce

During the period under review, the number of staff on permanent and contract/temporary terms was 3,491 as compared to 3,388 in the year 2011/12. The Authority is committed to employment policy which follows best practice, based on equal opportunity. The Authority is striving for gender balance and has been very keen on appointing women in various managerial levels provided that they have qualifi cations, ability and capability.

8.2 Training and Development

The Authority continues to consider training as a valuable investment in human resources for purposes of ensuring that organizational goals and strategies in place are achieved. The Authority provides trainings that focus into enhancement of skills and knowledge necessary to meet the dynamic business environment. During the year 2012/2013, a total of 829 employees attended various trainings whereby 805 staff attended locally conducted courses and 24 attended trainings abroad. 8.3 Labour/ Industrial Relations

The Authority continued to uphold cordial relationship between management and staff whereby employees were involved in major policy changes affecting them. Existence of well established procedures including regular meetings with Trade Union (DOWUTA) made it possible for the views of employees to be taken onboard in reaching major decisions.

8.4 Employee Medical Assistance

During the year, the Authority continued to provide free medical care to all staff. Tanzania Ports Authority has also HIV/AIDS policy in place which focuses on creating awareness on HIV/AIDS among staff members by providing information on HIV/AIDS with an emphasis on preventive strategies.

| 36 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 8.5 Corporate Social Responsibility

The Authority recognizes that as a good corporate citizen it has an obligation of giving back to the society. During the year under review, TPA managed to implement its corporate social responsibility policy which focuses mainly on Health, Education and Social development.

During this period, TPA managed to donate a total of TZS. 243,735,000 to various charitable missions, institutions and individuals as detailed in Table 4:

Table 4: Authority’s Donations S/N. SECTOR AMOUNT 1. Education 115,250,000 2. Health 89,485,000 3. Social Development 37,000,000 4. Disaster Management 2,000,000 Grand Total 243,735,000

8.6 Publicity

During this period the Authority commissioned the Single Point Mooring (SPM) facility at the Dar es Salaam port which attracted media publicity when the fi rst maiden tanker baptized MT. LR2 PIONEER started discharging fuel using the multi-product facility.

The Multi-product facility which has the capacity of handling 150,000 tons of crude and refi ned oil at once is one of the major projects implemented by TPA during this period.

TPA acknowledges SPM as one of signifi cant projects in the country’s economy particularly in addressing shortage of fuel in the country and her neighbors who depend on our ports for importation of fuel. The project is also a major boost to the Government’s decision of bulk fuel procurement system.

In the next fi nancial year, the Authority plans to carry out an aggressive publicity campaign on Standard Operating Procedures (SOPs) and Clients Service Charter (CSC). It is expected that planned publicity programs will create awareness to TPA customers and the general public.

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 37 | | 38 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS 9.0 STATISTICAL TABLES

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 39 | (DWT) ,123,874 ,123,874 4,387,885 4,387,885 2011/ 2012 - - 45 9,585,952 45 7,769 12,115,664 7,769 2012/ 2013 2,282,972 2,179,618 18,184 127,168 108,560 2011/ 2012 23,539 2012/ 2013 2011/ 2012 2012/ 2013 2011/ 2012 MWANZA KIGOMA KYELA TOTAL 2012/ 2013 INDI INDI 2011/ 2012 - - - 262,266 111,911 - 8,725 96,235 3,978 85,616 952 7,394 971 4,760 271,943 116,860 AND MAFIA 2012/ 2013 2011/ 2012 2012/ 2013 2011/ 2012 2012/ 2013 2011/ 2012 101,041 124,674 0 0 - 0 0 - 0 - - 101,014 124,674 12,544,978 10,898,421 457,537 644,354 203,644 235,076 49,148 32,345 360,891 210,284 81,880 73,253 29,691 21,931 13,72 DAR ESDAR SALAAM TANGA MTWARA L KILWA, 2012/ 2013 Tranship- ments Sub - Total 101,041 GRAND TOTAL 124,674 ------358,501 197,527 16,119 8,738 24,491 19,155 500,152 350,094 IMPORTS Dry Bulk Break Bulk 1,742,756 1,269,738 249,773 4,439,865 294,660 4,124,212 Liquid Bulk 88,791 4,260,718 145,710 3,591,951 64,815 Sub - Total 0 10,443,339 76,836 6,149 44,449 8,985,901 10,033 EXPORTS 22,417 344,713 462,786 0 64,815 331 Break Bulk 80,759 - 44,449 5,498 1,926,084 10,033 31,230 3,923 1,732,102 Liquid Bulk 112,824 25,596 181,568 790 138,829 - 154,317 Sub - Total 74,514 5,498 - 4,699 46,539 22,312 2,000,598 55,744 40,975 1,787,846 Outwards - 112,824 - 1,600 181,568 - 4,669,481 138,829 - 154,317 459 Inwards 0 7,259 4,699 22,312 19222 - - 10,944,6 - 1,600 23540 0 15,309 7,259 5200 15,379 0 19,222 2,776 23,540 2,208,458 0 5,200 - 2 2,776 0 - 0 4,282,635 0 3,633,669 0 0 1,992,529 0 1,564,398 - - - - 0 - 74,514 55,744 STATEMENT NO. 1 STATEMENT ALL PORTS 2011/12 - 2012/13 CARGO TRAFFIC AT

| 40 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS DWT a Total

Kilwa Lindi Mafi 2012/2013 2011/12 2012/2013 2011/12 2012/2013 2011/12 2012/2013 2011/12 ImportsExportsSub Total 9,514 399 9,913 5,366 17,804 23,170 2,260 2,726 466 610 2,030 1,420 32,675 36,509 3,834 4,058 7,145 3,087 44,449 49,148 4,699 10,034 32,345 22,311 STATEMENT NO. 2 STATEMENT PORTS CARGO TRAFFICMINOR COASTAL

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 41 |

17 DWT 2012 2011/ 992,587

1,749,496 1,749,496 124,674 124,674 55745 94032 2013 2012/ 86,738 2,025,632 5 1,492,989 1,599,719 2012 2011/ 3,659 29,47011,137,765 12,530,675 34 10,104 3,563,881 3,360,597 2013 2012/ 48,980 48,980 16,784 16,784 2012 2011/ 298 72,730 72,730 0 0 0 107,704 3,584 0 74,514 0 2013 2012/ 1,389 190,876 190,876 2012 2011/ 162 92,869 0 - - - 0 0 MALAWI UGANDA Others TOTAL 2013 2012/ 18,676 18,676 93,411 2012 2011/ 25,038 434,500 0 - - - 0 0 2013 2012/ 27,489 27,489 636,998 2012 2011/ 14,524 337,918 337,918 0 - - - 0 0 2013 2012/ 21,001 308,180 2012 2011/ 975,751 975,751 0 - - - 0 0 237,109 237,109 2013 2012/ 965,377 965,377 263,851 2012 2011/ 1,634,135 0 - - - 0 0 311,984 0 0 000 000000 2013 2012/ 279,057 279,057

1,858,718 1,858,718 2012 2011/

7,432,778 7,432,778 1,156,722 1,156,722 - TANZANIA ZAMBIA CONGO R. D. BURUNDI RWANDA 2013 2012/ 74,514 74,514 55,745 - 86,738 86,738 124,674 107,704 90,448 - 631,196 215,603 105,013 78,499 19,422 20,987 5,620 17,388 19,618 9,216 10,830 9,785 26,436 927 23,124 3,298 841,259 355,703 2,334,352 2,544,695 1,148,314 909,882 312,421 385,528 136,856 160,871 235,037 189,428 27,470 38,0146,922,844 6,276,056 42,286 1,579,661 48,490 1,289,278 5,438 701,526 496,195 12,409 287,179 4,263,342 323,392 609,509 4,289,3 409,187 74,735 92,707 189,487 72,432 53,364 33,340 10,418,305 8, 8,320,229 1,397,385 1,397,385 TRANS- SHIPMENT GRAND TOTAL CONTAIN- ERIZED FULLEMPTIES 864,742 1,010,529 350,425 279,057 TOTAL 311,984 EXPORTS 263,851 237,109 21,001 14,524 27,489 25,038 18,676 162 - 1,389 298 16,784 - 7 ------350,425 - EXPORTSBREAK BULK LIQUID BULK 0 IMPORTS BREAK BULK DRY BULK 1,552,099 1,192,009 LIQUID BULK 12,956CONTAIN- 34,141ERIZED FULL 0EMPTIES 2,403,371 2,313,086 313,378 TOTAL 0 299,629 1,826 IMPORTS 369,683 20,053 332,127 10,663 124,650 19,225 125,910 281,149 211,818 73,705 36,435 44,908 - 31,581 23,015 0 3,6 - 0 - 0 89,184 - - 0 - 0 - 1,747,997 1,245,375 ------1,826 10,663 STATEMENT NO. 3 STATEMENT COUNTRYWISE DISTRIBUTION OF CARGO THROUGH ES DAR SALAAM PORT

| 42 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS INERIZED CONTA INERIZED CONTA RAL CARGO TRADE 2012/2013 2011/12 GENE DRY CARGO TEU’s TONS % DRY CARGO TEU’s TONS % ETRATION IN THEETRATION DRY INER PEN INER IMPORTS Dar es Salaam G/CTICTS 3,708,819TangaMtwara 74,846Sub Total 2,546,571EXPORTS 1,091,905 344,713Dar es Salaam G/C 207,293 29.4 64,815 TICTS 6,664,918 5,039 3,276,216 2,546,571 679,074Tanga 7,271 100.0 294,449 79,437Mtwara 92,179 2,131,541 29,704 78,245Sub Total 3,747,617 1,246,861 23.0GRAND TOTAL 1,371,501 45.8 56.2 579,655 174,166 112,824 462,786 192,668 76,836 138,829 5,947,379 41.9 85.4 2,177,588 8,842,506 2,131,541 5,403 1,246,861 5,962 749,726 7,338 280,579 8,272 100.0 283,654 100.0 578,103 65,832 982,078 121,673 72,294 107,058 2,014,021 3,636,568 5,761,638 26,468 58.3 87.6 92.5 65.2 61.1 168,546 23.1 181,568 617,353 34.4 154,317 2,067,689 8,015,068 982,078 82.3 5,803 8,329 254,972 535,551 100.0 66,192 1,796,155 130,532 5,432,723 86.9 67.8 84.6 36.5 STATEMENT NO. 4 STATEMENT CONTA

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 43 | Shift Tons/ Shift Tons/ Shift Tons/ Shift Tons/ Shift Tons/ Shift Tons/Shift Units/Shift Tons/ RAL CARGO /Shift DAR ESDAR SALAAM TANGA MTWARA SHIFT FOR GENE FOR SHIFT Tons/Shift Units/Shift Tons 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 Shift Tons/ Break Bulk Dry Bulk Vehicles Break Bulk Dry Bulk Vehicles Break Bulk Dry Bulk Break Bulk Dry Bulk Break Bulk Break Bulk JulyAugustSeptemberOctober 283.2 249.3November 340.6 502.2 653.4December 703.8 601.0 408.6January 539.0 542.0 527.0 593.2 230.6February 472.9 388.3 821.5 830.0 433.8 407.8March 574.0 501.2 228.2 507.0 1221.0April 200.0 367.9 290.5 803.0 690.7 181.0 388.0May 262.0 832.0 798.8 216.5 347.5 498.0 308.1June 604.3 211.4 203.1 304.0 525.0 334.9 857.5AVERAGE 209.1 561.0 290.4 338.0 666.2 331.3 358.2 167.3 532.9 656.0 242.8 288.3 859.9 254.0 151.6 210.9 437.9 133.2 347.3 713.3 658.8 825.0 258.8 299.5 274.0 260.0 243.7 648.7 636.1 674.2 723.0 0.0 814.5 365.3 267.0 231.0 227.4 313.1 170.7 1043.0 46 673.1 268 346.5 175.6 684.6 481.0 252.0 268 200.3 0.0 312.6 0.0 317.8 568.0 786 395.3 448.0 902.0 195.6 951.4 0 954.0 686.8 0 173.9 38 610.0 1431.0 173.5 206.5 27 509.0 342.8 114 424.3 195.4 212.8 849.0 200.7 0 230.0 200.9 0 220 64 328.3 212.3 0.0 0 423.9 0.0 490.1 230.0 59 36 208.4 230.0 65 280 0.0 147 400.4 287.7 139 240 151.3 279 117.8 129 24.4 Statement No. 5 PRODUCTIVITY PER GANG

| 44 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS DSM PORT - TICTS TANGA 2012/13 2011/12 2012/13 2011/12 TRAFFIC Gross Net Gross Net Net Net INER INER JulyAugustSeptemberOctoberNovemberDecember 508.6January 510.0February 495.4March 413.8 609.8April 408.0 614.2 618.2May 439.2June 581.0 507.0 408.0 601.9 493.0 AVERAGETOTAL 498.0 434.0 604.8 435.1 482.0 616.0 607.0 446.0 615.0 482.9 616.0 605.0 450.0 481.2 458.3 604.1 597.0 188.8 451.0 483.6 579.0 146.9 620.4 435.0 192.0 605.0 604.8 608.6 447.0 139.7 594.0 0.0 631.7 312.0 175.7 462.0 559.0 180.3 180.3 425.0 460.8 552.0 219.7 434.0 77.2 200.1 577.0 94.4 185.7 514.0 579.0 87.0 524.0 125.7 96.1 128.6 129.6 97.0 270.3 83.0 215.5 183.9 207.3 158.1 Statement No. 6 MOVES/24 HRS FOR CONTA

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 45 | ,222 66,965 70,114 80,007 952,789 960,690 61,266 71,474 64,985 ,910 78,541 80,966 75,791 ,136 74,058 95,994 97,991 0,494 96,147 114,888 114,383 77,125 77,125 72,914 91,866 97,240 74,331 71,615 80,229 84,522 4 66,162 67,934 75,199 73,223 - - 84,203 72,328 66,919 66,798 - - 66,521 63,102 62,977 63,390

796 796 729 - 85,441 78,617 79,878 82,298 1,241 1,065 1,056 1,014 KIGOMA KYELA TOTAL 16,757 16,757 14,961 14,290 14,280 502 755 856 1,077 159 108 - - 75,419 73,263 65,434 69,955 1,145 DAR ESDAR SALAAM TANGA MWANZA 2012/2013 2011/12 2012/2013 2011/12 2012/2013 2011/12 2012/2013 2011/12 2012/2013 2011/12 2012/2013 2011/12

41,513 44,154 47,875 45,718 954 1,044 871 1,575 22,518 21,011 24,360 24,375 1,094 1,659 1,138 1,011 83 66 955 54 57,809 57,809 55,298 58,224 60,990 564 649 - - 16,407 16,475 35,550 35,600 1,365 839 1,245 981 991 797 975 420 77 59,147 59,147 56,316 53,801 59,109 77 87 250 350 13,931 14,000 24,070 24,180 1,016 1,064 1,254 586 160 148 854 297 62,611 57,928 53,704 49,497 - - 761 700 20,031 19,527 24,400 24,304 1,059 970 1,418 854 209 116 683 436 83 58,001 57,439 49,519 53,453 - - 769 75,086 72,251 77,385 77,744 142 791 61 32 23,655 21,585 35,600 35,555 582 644 1,046 682 1,029 876 796 370 10

58,560 55,526 53,874 59,576 398 321 - - 16,127 15,756 35,555 35,550 1,289 834 1,680 1,646 751 477 757 468 51,338 48,612 65,485 48,107 48,690 54,966 51,964 - 51,457 790 - 445 819 711 460 922 13,699 16,317 12,674 14,901 13,242 13,244 13,440 13,240 773 555 751 775 1,000 809 1,179 800 711 65,960 61,291 63,362 65,920 55,408 770 48,629 698 55,626 363 48,876 583 17,242 - 15,270 14,285 55,368 - 14,290 54,450 678 455 914 52,605 12,807 55,799 562 11,764 1,139 14,280 - 1,505 14,285 - 410 449 711 334 14,382 865 14,011 885 13,240 216 13,242 162 625 25 774 25 671 68,841 739 538 987 - - 70,913 70 706,286 666,860 666,046 676,829 3,695 4,035 5,732 7,015 203,873 191,935 262,116 262,341 9,725 10,338 13,121 11,945 6,917 6,839 5,774 2,560 930,496 8 Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis.

July July August September October November December January February March April May June TOTAL Statement No. 7 PASSENGER PORTS TPA TRAFFIC AT

| 46 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS - DAR ESDAR SALAAM TANGA MTWARA TOTAL 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 1. DEEP SEA SHIPS (a). Dry General Cargo Vessels Number of Calls GRT (‘000) (b). Container Vessels Number of Calls GRT (‘000) 329 (b). Tankers Number of Calls GRT (‘000) 12,772 370 -ship call 342 Sub-Total GRT 12,201 2. SHIPS COASTAL 8,166 136 419 (a). Dry Cargo 835 Number of Calls 7 200 8,610 GRT (‘000) 3,541 120 (b). Tankers 881 78 3,015 29 2 1,228 478 24,479 1 93 120 86 23,826 1,445 91 28 482 11 446 136 29 2 1,456 97 256 59 34 110 398 1,533 28 13,063 1 41 37 3 347 115 9,840 540 12,486 477 62 - 35 378 521 - 10,453 654 540 962 48 867 138 26,475 3,572 26,013 1,040 43 1,109 122 3,074 645 1,024 214 Number of Calls GRT (‘000) -ship call Sub-Total GRT -ship calls Grand- Total 53 GRT 531 1,366 261 64 546 1,427 256 381 1 197 24,860 111 392 28 24,218 212 115 - - 65 1,521 562 521 - 1,568 35 111 49 1,407 1 2,125 867 1,163 697 0.212 1,750 43 710 54 289 27,788 26,483 1,313 65 256 470 Statement No. 8 SHIPPING MAJOR PORTS TRAFFIC AT

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 47 |

- - - MWANZA KIGOMA KYELA TOTAL WARA 2- - 2 10 - 10 5 25 2013) oor area 300(m2) oor area 417 (m2) JUNE JUNE a have the following facilities: a: 1 No. Dhow jetty & Export and Import shed - fl -Total Floor Area (Ubungo) (m2) -Total (m2) Floor Area (Kurasini) -Total No.Customs Warehouse Floor Area (m2) -Total (m2) Floor Area - main Port Total (m2) - Container Terminal - AMI Area (m2) Depots - (Ubungo) (m2)Transit (m2) - (Kurasini) of Lindi, Kilwa Masoko and Mafi Ports The (m2). shed - Floor area 1,783 Lindi: 1 No: Dhow Jetty & 3 Transit Kilwa Masoko; 1 No: Dhow Jetty & Custom Godown - fl Shed is taken as part of the whole a shed allocated for one berth. A unit Transit Mafi 28,060 28,300 - - 129,794 28,210 - 15000 3,800 1 - 104,500 29,745 40,385 - - 22,800 - - 10000 183,004 28,060 28,300 3745 108,245 3,800 29,745 1 40,385 22,800 Bulk Oil Jetty (Tanker Berth) No.Bulk Oil Jetty (Tanker Single Buoy Mooring (SBM) No.Grain Silo (30,000 Tons) No.Lighterage & Dhow Wharves (m) Length -Total No.Stream Handling Points Shed No.Main Quay Transit Floor Area(m2) -Total Baggage Hall and Shed No.Passenger, Floor Area -Total Shed No. Transit of Port Back Floor Area(m2) -Total 10 day Cargo Shed No. Floor Area(m2) -Total Shed No.Lighterage Area Transit Floor Area(m2) -Total Depots No. Transit 1 1 4 - - 1 2 - 5 2 - - 588 - 9 6 381 46,439 3 - - - 2 - - - - 6,290 532 7,322 3 1 - 3 1,560 1 38157 0 - 1 - 7 8,692 0 1 15 34,692 9,160 - - 10300 0 - - 5 0 - 1 - - 3000 1 102,218 1 6 1 969 0 14 4 25 0 0 15,450 3,532 3 43,384 10 1,560 1 -Total Length (m) Length -Total Depth Dredged 2,018 - 385 1151 301 3,855 Deep Water Berths No.Deep Water 11 - 2 18 3 34 FACILITIES DSM TANGA MT- (c). Stacking Grounds. (c). Stacking (b). Sheds. (a). Jetty etc. Berths, Wharves, Statement No. 9 AND CARGO HANDLINGQUAY AREAS (30

| 48 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS -54- -223 --3 -6 -15-2 -041 -7-2 -17-- -10-- -11-- -2-1 -3-- -5-- -0-- -1 -3-- -5-- -17-- -2-- -1-- --3- -4-1 --4- --4- --8- --1- -21- -1-2 -111 -0-- -0-- -1-- -2- 5--- 1--- 7513 103111 1 21 - 45 5 - 6 4 8 39 68 27 12 DAR ESDAR SALAAM TANGA MTWARA TICTS TERMINAL G/CARGO 2013) JUNE JUNE CRAFT (BY 30 CRAFT (BY FACILITIES Cargo Handling Equipment Cranes: Crane Portal Mobile Crane crane Tower Harbour Cranes Ship to Shore Gantry Crane Gantry Crane Rubber Tyred Rail Mounted Gantry Crane Operational Equipments Tractors Trailers (3-16T) Forklifts Loader Front stacker Reach Chain& Bert) Conveyors ( Loading, Grabs Spreader Weighbridge Elevator Bucket Grain Hoppers Bagging Scales Silo Bagging Line Dust coll Unit Bagg Units Mobile Empty Handlers Generator Air Compressor Breakdown Bale Clamps Marine Crafts Berthing Tugs Tugs Ligther Towing Lighters Pantoons Labour Launches Pilot Boats Boats Patrol Mooring Boats Barge Water SBM Tender Hydrograph Boat Security Dingly Lorries Statement No.10 MARINE AND EQUIPMENT HANDLING CARGO

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 49 | IN Nos. LIGHTS (MTRS) WATER 2013) JUNE JUNE Red (ps) Gree(s.s)Beacons mark/LMLeading Light House (Makatumbe)Light House Ras Mkumbi Red (ps) Green (s.s)Beacons mark/LMLeading Light House 11 2 5 Red (ps) 13 Green (s.s) 5.5 - 7GRP Red 8 15 - 96 5.5 - 7 mark/LMLeading 10 - 18Light House 2 5.5 - 7 Solar Red (ps) Green (s.s) “ 15.96 2Beacons “ 1 “ mark/LMLeading Solar 6Light House 5.5 - 7 6 - mark/LMLeading Gas 1 3 7 - 12.6 29 5.5 - 6.1 3 - 3 - Solar - 14.5 1 Gas & Solar Gas 5.5 - 7 0 5.5 - 7 “ 31 0 7 - 12.6 Gas - - Solar 18 -14 4 - Solar - Solar - - - 3 - 3 Gas Gas 26 - - 7 - 12.6 - - 16 Gas - Gas Gas - Gas - - Gas - - - - 16 - STATION AID TYPE NAVIGATION TOTAL RANGE NM SOURCE OF ABOVE HIGH DSM PORT CHANNELMAFIA PORTTANGA STEEL BUOYS BUOYS STEEL PORTMTWARA STEEL BUOYS LINDI PORT STEEL BUOYS KILWA 2 STEEL BUOYS 3 Gas STEEL BUOYS - - - - - 4 - Gas - Statement No.11 AIDS ANDNAVIGATIONAL LIGHTS 30th (BY

| 50 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS KIGOMA GRAND TOTAL 0330 19724750 0000 22242 0000 8047-33 0000 29290 0000 2418-6 6/2013 -44-11-191 0 0 000000 7464-10 77 16 70 0 0 00 9 0 003 46 2-14440-41713-4109-10 0 0 0 22 0 000000 -24 7 7 0 5 3 -2 11 4 -7 3 4 1 2 1 -1 2 1 -1 76 51 -25 33 42 9 25 23 -2 9 13 4 5 5 0 4 3 -1 2 2 0 2 1 -1 80 89 9 0-387354-14313 721044045010 -7220110 0 0 010100 0 0000 0 0 0 000000 10100 0 00 0 0000 0 0 0 000000104-6338373355241-112423-1136 223311 0 00 0 0000 02233110 0 0 000000 110-11 110-110 817 -01 1000 0 0 0 000000 3-10 4235-7 3831-74 HEAD QUARTERS ES DAR SALAAM TANGA MTWARA MWANZA KYELA EST STL DIF EST STL DIF EST STL DIF EST STL DIF EST STL DIF EST STL DIF EST STL DIF EST STL DIF OperationsFinanceEngineering 5 Purchasing & Supply 48 31 5Manpower 44 27 0 1483 83 -4 -4 1051 444 -432 90 144 79 356 103 -88 109 -4 13 -35 99 56 11 63 60 97 16 48 -39 41 -15 5 36 28 19 24 9 35 11 -12 12 20 -8 7 3 12 12 4 13 19 -8 4 10 7 8 0 -3 10 5 6 4 9 -3 5 2 -1 2 -1 -2 1 5 1724 4 1233 -1 5 -491 2 640 -2 485 179 -155 189 10 Manage- ment Services PlanningMarketingAudit 14Manage- 5ment 19Secretary & Legal 12 7 5 2 12 8 58 0Fire & 3Safety 36 11 -5 -22 13 0 16 2Procure- 0 4ment Mgt. 4 -12Unity 0Marine 3 1Operations 0 -1ICT 0 0 2 00282286410455-492514-11110-1143-1000426358-68 TOTAL -1 0NB: = Strength, DIF 2 = Establishment, STL EST EXC = Excess = Difference, 0 0 0 353 0 0 0 350 2 0 -3 0 2966 1 0 2485 0 -481 -1 0 518 0 0 376 -142 0 221 183 -23 101 46 -36 36 26 -10 21 14 -7 4,216 3,491 (725) Public Rela- Public tions MedicalSecurity 13Bandari College 11 1 -2 8 1 6 0 -2 69 3 73 4 1 26 -2 22 0 -4 0 25 0 23 -2 0 6 0 1 0 -5 0 5 0 2 -3 1 0 -1 133 122 -11 Statement No.12 30/0 AT AS STRENGTHS AGAINST ESTABLISHMENT OF SUMMARY

TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS | 51 | (725) 3,491 4,216 KIGOMA GRAND TOTAL 6/2013 DAR ES SALAAMDAR TANGA MTWARA MWANZA KYELA HEAD QUAR- TERS EST STL DIF EST STL DIF33 42 EST STL 9 DIF10 25 EST 10 STL 23 0 DIF EST 0 -2 STL DIF 9 EST 0 STL7 DIF 13 0 EST 16 4 STL77 00 DIF 0 9 0 EST 5 0 00 46 0 STL 5 0 DIF 22 00 0 0 007 000000 7 -24 0 10 4 0 5 422 3 0 -6 3 33 -1 338 011 -2 11 2 373 0 0 0 11 2 35 -11 4 0 0 0 0 52 0 -7 2 41 0 0 0 3 -11 1 0 0 0 24 4 -1 23 0 1 0 80 0 -1 0 2 0 89 13 0 1 0 6 9 0 0 -1 0 -7 0 2 0 10 2 0 0 1 10 2 0 -1 0 0 0 76 0 0 1 0 51 0 1 0 -25 0 0 0 0 440 0 450 0 0 10 0 0 0 0 0 22 0 33 11 11 0 -11 OperationsFinance 5Engineering 5 & Purchasing 48 31Supply 44 0 27Manpower -4 -4 1483Management 1051 90 444 83Services -432 356 79 144 103Planning -88 109 -4 13Marketing -35 56 99 14Audit 11 63 5 19 60 97Management 48 16 7 -39 38 5Secretary & -15 41 5Legal 31 12 36 19 8 2 28 Rela- 12Public 24 -7 9 11 58tions 3 4 0 -12 35 -8 12Medical 20 36 7 4 11 3 -5Fire & Safety 3 12 4 -22 13 3 12Security -8 13 13 0 -1 16 0 19 8Bandari Col- 11 2 10 2lege 7 0 4 -3 1 6 -2 0 5 -1 Procurement 4 4 8 10 0 -12 1Mgt. Unity 44 -3 5 1 2 1 9 3Marine Opera- 2 -1 6 0 0 40 1tions -2 -1 0 -1 1724 69 1ICT 2 -4 1233 5 -2 4 0 -1 -491 0TOTAL -1 73 2 17 5 2 0 3 0 640 0 4 0 13 0 485 -2 0 0 0 353 1 0 -4 350 179 -155 3 0 26 0 0 0 -2 -3 2 189 10 0 22 3 2966 0 0 0 10 0 9 2485 1 -4 0 0 -481 0 282 0 0 -1 -1 518 25 0 197 286 0 0 0 0 376 23 0 247 0 4 -142 0 0 -2 0 221 50 0 0 0 183 0 104 6 0 0 0 -23 0 0 55 101 0 0 1 0 0 -49 46 0 0 80 0 -5 -36 0 25 0 0 22 36 5 47 14 0 0 0 26 0 24 -11 2 42 -10 -33 0 29 0 11 21 2 -3 35 29 0 0 0 14 1 -7 -7 0 -11 0 0 4 0 74 0 3 -1 64 24 133 -1 -10 122 18 0 -11 -6 0 0 426 358 -68 NB: = Strength, DIF = Establishment, STL EST EXC = Excess = Difference, STATEMENT NO. 13 STATEMENT 30/0 AT AS STRENGTHS AGAINST ESTABLISHMENT OF SUMMARY

| 52 | TANZANIA PORTS AUTHORITY ANNUAL REPORT & ACCOUNTS