TANZANIA PORTS AUTHORITY

ANNUAL REPORT & ACCOUNTS

FOR THE YEAR ENDED 30TH JUNE, 2009 Annual Report and Accounts for the year ended 30th June, 2009

Office of the Director General One Bandari Road Kurasini P.O. Box 9184 Dar es Salaam Telephone: (255-22)2110401 Fax (255-22) 2-113432

Date: February, 2010

The Minister Ministry of Infrastructure Development P O Box 9144 ii Dar Es Salaam

Dear Honourable Minister,

Submission of the 2008/09 TPA Annual Report and Audited Accounts th Annual Report and Accounts of the Tanzania Ports I am pleased and honoured to submit the 4 Authority for the financial year 2008/09 pursuant to Section 73(4 &2) of the Ports Act 2004.

Yours sincerely.

Mr. Raphael O.S. Mollel CHAIRMAN OF THE BOARD OF DIRECTORS.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

TABLE OF CONTENTS

LIST OF ABREVIATIONS...... iv 1.0 CORPORATE VISION, MISSION, AND VALUES...... 1 2.0 CHAIRMAN’S STATEMENT...... 2 2.1 List Of The Board Of Directors...... 4 3.0 CHIEF EXECUTIVE STATEMENT ...... 5 3.1 Organization Structure...... 7 3.2 Management Team ...... 8 4.0 PERFORMANCE REVIEW...... 10 4.1 Financial Performance ...... 10 4.1.1 Financial Statements ...... 18 4.2 Operational Performance...... 18 4.2.1Traffic Performance ...... 4.3 Market Analysis ...... 4.4 Investments in Ports...... 4.5 ICT Developments ...... 4.6 Port Safety, Security & Environmental Issues...... 4.7 Human Capital Development...... iii 4.8 Industrial Relationship...... 4.9 Gender Balance ...... 4.10 HIV/AIDS at Work Place ...... 4.11 Corporate Social Responsibility...... 4.12 Corporate Governance ...... 5.0 APPENDICES ...... 5.12.1 Statistical Statements......

Kurasini Oil Jetty at Dar es Salaam Port

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

ABBREVIATIONS

TPA Tanzania Ports Authority TAZARA Tanzania Zambia Railway Authority TRL Tanzania Railway Limited ICD Inland Foot Container Depot TEUs Twenty Equivalent Units TRT Turn Round Time EPZs Export Processing Zones ICT Information Communication Technology PMP Ports Master Plan CFS Cargo Freight Station PPP Public Private Participation BOT Build Operate and Transfer iv JV Joint Venture DT Dwell Time STRT Ship Turn Round Time KOJ Kurasini Oil Jetty

Operations at Dar es Salaam Container Terminal

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

1. CORPORATE VISION, MISSION AND VALUE STATEMENTS

Vision

“To lead the regional maritime tra logistics services to excellence”.

Mission

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“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 caring organization” with Integrity/Trust, Stability, Good Governance, Recognition, Customer Care and Team Work.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

2. CHAIRMAN’S STATEMENT It gives me great pleasure to present the 2008/09 Annual Report and Accounts of the Authority. This is the 4th report since the establishment of the Authority by the Act of Parliament No. 17 of the year 2004.

On behalf of the my fellow members of the Board of Directors named below, I am glad to report that the performance of the Authority during 2008/09 was once again impressive. The Authority’s financial position continued to improve relative to the preceding years. Surplus before tax increased by 60 percent to Tshs. 60.646 billion this year from Tshs. 37.879 billion earned in the year 2007/08.

Board of Directors served during the period under review

Mr. Dustan G. Mrutu Vice-Chairman Eng. Godfred J. Shuma Director Late Hon. Richard S Nyaulawa (MP) Director 2 Late Mrs. Lucy K. Kachele Director Mr. Onesmo K. Nangole Director Mr. Hassan M. Raha Director Eng. George H. Alliy Director

Traffic handled at both sea and lake ports totaled 8.824 million tons, which is an increase of 2 percent compared to 8.634 million tons handled in year 2007/08.

We continued to enjoy the support of the government, port users and the general public. This support is crucial for smooth operations. At the beginning of the period under review, the Government required the Authority to strengthen its efforts on the key issues, including:

(i) Securing funds for implementation of capital project;

(ii) Involvement of private sector in implementation of port projects;

(iii) Implementation of new organization structure to improve staff motivation

We tasked the management to take up the requirements into implementation and by the end of this review period the following achievements were attained:

i) Securing a long term loan amounting to US $ 60 million from CRDB bank to finance replacement of the SPM pipeline.

ii) Preparation of a long term plan on port development i.e. the Ports Master Plan 2008 to 2028 which spells out the roadmap on ports development in the country was completed in March 2009.

iii) The Authority new structure was diligently implemented whereby vacant posts were

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

filled through a competitive process by the end of this reporting period. Some of the key vacant posts filled include the recruitment of Deputy Director General for Infrastructure Development.

We are determined to modernize our ports to the International Standards and achieve our Vision of “leading the regional maritime trade and logistics services to excellence”. It is our belief that, a successful implementation of the key projects identified in the Ports Master Plan (2008 – 2028) is the critical instrument to this process. The projects involve capacity improvement and expansion of Dar es Salaam port by; developing two new container handling berths, dredging of the entrance channel and development of large cargo freight station at Kisarawe. Development of new modern sea ports at Mwambani Tanga and Mbegani Bagamoyo.

Computerization of the ports’ operations is also a major aspect of the Ports Master Plan. Focused areas for computerization comprise; General Cargo, Port View and the port Community system in general which serves as information exchange between stakeholders.

A collaborative working relationship between all of our stakeholders, Government & its Agencies, Shipping Agents, Cargo Agents, Transporters, ports users and community in general is required if the transformation of the Authority into a world-class business enterprise is to continue succeeding.

On behalf of the Board I wish to express my appreciation to the Authority’s staff and the management for their continued confidence, commitment, loyalty and the understanding they have demonstrated to support our transformation process. 3 I would like to thank my colleagues members of the Board of Directors for their active contribution to the success of the Authority. Their commitment in serving the Board not only ensures compliance with corporate governance requirements, but also enhances the quality of decisions taken. I have no doubt that their collective wealth of knowledge and experience will have an enormous impact on the future of TPA.

Mr. Raphael O.S.Mollel CHAIRMAN OF THE BOARD OF DIRECTORS

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

BOARD OF DIRECTORS AS AT 30TH JUNE 2009

Mr. Dustan G. Mrutu Vice-Chairman

Mr. Raphael O.S. Mollel Chairman

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Late Mrs. Lucy K. Kachele Director

Late Hon. Richard S Nyaulawa (MP) Director Eng. Godfred J. Shuma Director

Mr. Onesmo K. Nangole Eng. George H. Allily Director Director

Mr. Hassan M. Raha Director

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

3. CHIEF EXECUTIVE’S STATEMENT

I am delighted, on behalf of the entire management and staff to report on a successful operational performance of the Authority during 2008/09. The year registered an outstanding performance surpassing levels attained in the previous financial year 2007/08.

Consolidated financial revenue, surplus before tax and throughput increased by 18.8 percent, 60 percent and 2 percent respectively compared to 2007/08 performance.

Operating revenue accrued to Tsh. 194,824 billion and surplus before taxation was Tshs 60.646 billion. Whereby, current ratio improved to 2.3:1 from 2:1 attained in 2007/08 and equity ratio to 16:84 from 9:91 recorded during 2007/08. As a result the Authority improved profitability and liquidity.

During 2008/09, total cargo traffic of 8.824 million tons were handled which is an increase of 189,897 tons or 2% percent compared to 8,634,305 tons handled during 2007/08. Cargo handled this year comprised of 6.796 million tons of imports, 1.630 million tons of exports and 375,762 tons of transhipment. Dar es Salaam port continued with its leading role by handling 7.795 million tons equivalent to 89% of the total cargo handled. Tanga port handled 417,313 tons and Mtwara 122,069 tons. The major lake ports handled 327,204 tons at Mwanza ports, 132,404 tons at Kigoma and 8,828 tons at Kyela port.

Development of the Ports Master Plan for the next 20 years, 2008 – 2028 was among the key project 5 accomplished during 2008/09. The plan provides a road map for transforming our ports toward a World –Class through a comprehensive investment. The strategy is to involve PPP in implementation of all green field port investments. The major projects identified in the ports Master Planfor implementation through PPP arrangement include; i Development of 2 additional Container Berths at Dar es Salaam port. ii Development of a Multi storey Car Park at Dar es Salaam port iii Development of Cargo Freight Station (CFS) at Kisarawe Dar es Salaam. iv Development of new port at Mbegani, Bagamoyo and Mwambani, Tanga. v Development of Water Front area along Dar es Salaam port.

These projects are at various stages of implementations. A time bound action plan to move to full landlord status as part of the agreement with the World Bank on Performance Assessment Framework (PAF) for the 2009/10 budget was concluded during the period. During the year under review, the Authority held discussions with the key stakeholders and chartered out a detailed road map with time bound action plan towards full landlord status by 2020. A Transaction Advisor (TA) to assist in preparatory stage and to guide the implementation phase will be engaged in 2010. In enhancing PPP, in 2008/09, six private operated ICDs entered into agreement to store containers, agreement with private labour gangs to operate at the General Cargo Terminal at Dar es Salaam port was executed, leasing of operations at Kassanga port and Kigoma Cargo Terminal were accomplished. Notwithstanding the concerted efforts by the Authority, stakeholders as well as the Government in general toward port developments, the sector is still facing some critical challenges which need to be addressed so as to sustain the growths. Of the major two setbacks on the ports performance, is a poor performance of the two railway lines, TRL & TAZARA and Dar es Salaam port congestion at

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

container terminal. Percentages of containers delivered at Dar es Salaam port by railway model of transport compared to roads has dropped even further to 0.05 percent in July, 2009 from 10 recorded during 2008. The rest were delivered by roads which are traditionally expensive mode of transport compared to rail in the case of long destined cargo. High route costs impact adversely costs of doing business and eventually rendering the ports less competitive. The unnecessarily high transit time to the neighboring countries, also impedes efficiency in the total transport logistical chain. These are attributed to too many road blocks, inefficient and cumbersome clearance process. I wish to commend the stakeholders and Governments initiatives to revamp the rail infrastructure, removing unnecessary road blocks and bilaterally development of Tanzania – Zambia common one stop boarder post to facilitate efficient clearance. A significant progress was made on arresting the problems of congestion of containers atDares Salaam Container Terminal and queuing of container ships at the outer anchorage which started since 2006. The main cause of congestion including insufficient container storage space, high container dwell times, drastic increase in containerized cargo and poor cargo off take due to poor state and incapacities in inland rail and roads transportation system.

The major short term measures taken to alleviate congestion include transferring of containers to 6 private inland container depots (ICDs), procurement of additional container handling equipment, creation of additional container handling spaces inside the port, streamlining of cargo clearance processes, sensitization of port users on timely cargo clearance, increase in storage tariffs, auctioning of overstayed containers and extension of working hours to 24/7.

In medium and long terms, the plan is to develop port capacities beyond demand. The following projects have been identified and their implementations are at various stages. These include: i) Construction of a multi-storey car park to avail more space for container handling. ii) Construction of a new container terminal berths 13 & 14. iii) Maintenance and capital dredging of the entrance channel and berths. iv) Development of a large cargo freight station (CFS) at Kisarawe, v) Modernization of dry bulk handling operations and conversion of General Cargo berths to bulk Terminal. vi) Development of new ports at Mbegani Bagamoyo and Mwambani Tanga.

We shall continue to invest adequately in human capital development, modern port infrastructure, equipment and technology to withstand competition and deliver steadily improved and cost-effective freight services. We regard the support and cooperation of our port users as very crucial to our success and we shall continue to uphold our mission, improve upon our performance and take advantage of every suitable opportunity that arises.

E.N.Mgawe DIRECTOR GENERAL

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 PORT MASTER PORT MWANZA MASTER PORT KIGOMA MASTER PORT KYELA PORT PORT MASTER PORT TANGA MASTER PORT MTWARA OF MARKETING DIRECTORATE DIRECTORATE LEGAL SERVICES LEGAL INTERNAL AUDIT INTERNAL DIRECTORATE OF DIRECTORATE DIRECTORATE OF DIRECTORATE OF PLANNING CORPORATE CORPORATE DIRECTORATE DIRECTORATE PRINCIPAL BANDARI COLLEGE BANDARI OF DEPUTY GENERAL LAKEPORTS DIRECTOR DIRECTORATE DIRECTORATE OF FINANCE OFFICER DIRECTORATE DIRECTORATE CHIEF MEDICAL CHIEF

7 OF OPERATIONS DIRECTORATE DIRECTORATE OFFICER OF SERVICES CHIEF FIRE & SAFETY FIRE CHIEF DIRECTORATE DIRECTORATE MANAGEMENT MANAGEMENT DIRECTOR GENERAL DIRECTOR OF DIRECTORATE DIRECTORATE ENGINEERING TPA Organization Structure as at 30th June, 2009 Organization Structure as at 30th TPA OF & SUPPLY DIRECTORATE DIRECTORATE PROCUREMENT PROCUREMENT MANAGER PORT ASSISTANT FINANCE & ADMN FINANCE MANAGER CHIEF OF SECURITY OF SECURITY CHIEF OF HUMAN OF HUMAN RESOURCES DIRECTORATE DIRECTORATE DEVELOPMENT COMMUNICATION CORPORATE MANAGER DAR ES SALAAM DAR PORT MANAGER PORT OPERATIONS PORT ASSISTANT

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Management Team as at 30th June, 2009

Mr. Ephraim Mgawe Director General

Mrs. Hapiness Senkoro Mr. Jason Rugaihuruza Asst. Director General & Director of Port Manager, Dar es Salaam Port 8 Procurement & Supplies

Ms. Apolonia Mosha Ms. Maimuna Mrisha Eng. Bakari Kilo Direction of Finance Director of Human Resources A.g. Director of Engineering and Administration

Mr. Flavian Kinunda Mr. Bartholomew Komba Mrs. Agnes Mujumali Director of Marketing Director of Operations Ag. Director of Internal Audit

Mrs. Florence Nkya Mr. Ayoub H. Kamti Capt. Gilbert L. Mokiwa Director of Corporate Planning Director of Management Services Director of Lake Ports

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Management Team as at 30th June, 2009

Mr. Che Chihwalo Ndalama Mr. Zakary Misso Mr. Juma A. Abdulrahman Director of Legal Services Port Master Tanga Asst. Port Manager (Fin & Admin)

Mr. Iddi Mwata Mr. Werner Mpiri Mr. David S. Mranda Asst. Port Manager (Operations) Port Master Mtwara Chief of Security

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Mr. Frandklin Mziray Mr. A.K. Mboya Mr. H.M. Mmbaga Corp. Communications Manager AG. Chief Fire & Safety Officer Principal Bandari College

Dr. Ombeni Mbwanmbo Mr. Hebel Mhanga Chief Medical Officer Mr. Awadhi Massawe Port Master Kigoma Port Master Mwanza

Mr. Sebastian Nandi Port Master Kyela

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

4. PERFORMANCE REVIEW

4.1 Financial Performance

During the year ended 30th June, 2009 operating revenue earned by the Authority amounted to Tshs. 194.824 billion. This was more by Tshs. 30.848 billion or 18.8% compared to Tshs. 163.976 billion earned in the year 2007/08. The Authority’s operating expenditure during the period was Tshs. 147.110 billion compared to the expenditure of Tshs. 128.557 billion in the year 2007/08. The expenditure for the year was more by Tshs. 18.554 billion or 14.4% compared to 2007/08’s expenditure. Authority’s surplus from Operations was Tshs. 47.715 billion compared to Tshs. 35.421 billion recorded in 2007/08. The increase in surplus was Tshs. 12.294 billion or 34.7%. The increase in Operating surplus was contributed by increase in operating revenue by Tshs. 30.848 billion or 18.8% compared to the increase in operating expenditure of Tshs. 18.554 billion or 14.4%.

Table 1. Overall Financial Performance Highlights.(Tshg Ml)

2008/09 2007/08 Change %

10 Operating Revenue 194,824.69 163,976.70 30,847.99 18.8 Operating Expenditure 147,110.04 128,556.50 18,553.52 14.4

Surplus from Operations 47,714.65 35,420.20 12,294.47 34.7

Non Operating Revenue 12,931.72 2,459.47 10,472.25 425.8

Net Surplus before Tax 60,646.37 37,879.67 22,766.71 60.1

Net Profit Ratio 31.1% 23.1% 8.0 - Revenue to Total Assets 44.16% 40.60% 3.56 - Total Assets 441,144.97 403,856.13 37,288.84 9.2

Table 2. Summarized Station -Wise Financial Performance

Tables below show Contribution to the Surplus made by each operational unit.

HQ* DSM Tanga Mtwara Mwanza Kigoma Kyela Total 2007/08 Tshs. Mill. Tshs. Mill. Tshs. Mill. Tshs. Mill. Tshs. Mill. Tshs. Mill. Tshs. Mill. Tshs. Mill. Operating 52,325.40 126,823.39 10,591.57 3,194.53 1,101.51 735.84 52.45 194,824.69 Revenue Operating 39,930.22 80,094.78 14,043.51 6,940.23 4,161.68 1,431.48 508.14 147,110.04 Expenditure Surplus 12,395.18 46,728.61 (3,451.94) (3,745.70) (3,060.17) (695.64) (455.69) 47,714.65 2008/09 Operating 50,428.70 101,239.70 7,633.70 3,229.50 1,004.60 420.60 19.90 163,976.70 Revenue Operating 29,294.50 77,878.10 13,012.50 5,267.30 2,253.40 578.70 272.00 128,556.50 Expenditure Surplus 21,134.20 23,361.60 (5,738.80) (2,037.80) (1248.8.0) (158.10) 252.10) 35,420.20 * Include Container Terminal (TICTS)

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

The Container Terminal at Dar es Salaam Port under the private operator (TICTS) earned the Authority a total of Tshs.52.3 billion which include a fixed rental charge of Tshs. 6.4 billion, royalty of Tshs. 5.4 billion and wharfage of Tshs. 40 .5 billion.

i) Liquidity and Capital Position

• Liquidity Throughout the current year, the Authority maintained a sound liquidity position which was supported by improved operational results. The Authority’s current ratio slightly improved from 2:1 in the financial 2007/08 Handling of Bulk Cargo at Dar es Salaam Port to 2.3:1 in 2008/09. Inflows from Income derived from port operations have been robust and the Authority continued to benefit from its operations. • Capital Position At the end of June, 2009, the Authority’s capital ratio remained stable with a debt to equity ratio of 16:84. In the year 2007/08 the ratio was 9:91. The increase in the debt to equity ratio was mainly contributed by increase in non-current liabilities especially deferred tax which increased by TShs.50.1 billion. Deferred tax increased mainly due to temporary timing differences on depreciable assets. 11 In spite of the increase, the debt to equity ratio for the current year is still lower than the TPA recommended ratio of 60:40. This means that the Authority is still credit worth.

ii) Cash Flows

During the year ended 30th June 2009, cash flows generated from operating activities amounted to Tshs.79.13 billion compared to Tshs. 47.190 billion generated in the year ended 30th June, 2008. This was more by Tshs. 31.94 billion or 67.7%. During the same period the Authority spent Tshs. 65.31 billion to finance various investments compared to Tshs. 27.63 billion spent in the financial year ended 30th June, 2008. Table 3 : Major investing activities carried during the year 2008/09

Investing Activities Amount TShs (M) Capital Work in Progress 15,806.781 Acquisition of Property, Plant and Equipment 370,776,375 Non Current Assets Replacement Fund 3,159.703 Self Insurance Fund 12.670 Long Term Fixed Deposits 18,948.670 Capital Goods in Transit 27,404.383 Total 65,319.536

In addition to the above, the Authority’s Cash Flows used in Financing Activities was Tshs.6.468 billion during the year 2008/09 compared to Cash Flows from Financing Activities of Tshs. 377.931 millions during year 2007/08.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Following the increase in expenditure on Investment and Financing Activities, the balance of Cash and Cash Equivalents as at 30th June, 2009 was Tshs 14.411 billion which is less by Tshs. 7.702 billion compared to the balance of Tshs.22.114 billion as at 30th June, 2008. Despite the decrease in cash and cash equivalents as at 30th June, 2009; the Authority’s cash position during the financial year 2008/09 was fairly strong. A detailed financial performance of the Authority is shown on the Balance Sheet, Income Statement and Cash Flow Statement appearing on pages 18 to 22 of this report. iii) Financial Risk Management

The Authority’s approach to risk is founded on corporate governance practices whereby the Management under the guidance of the Board of Directors takes the lead in establishing the tone at the top and approving professional standards and corporate values to manage risk. The Authority has established Management Systems Unit to deal with risk management. Directors and other Sectional heads who manage cost /revenue centers have the primary responsibility for monitoring and controlling risks within their areas of accountability.

• Financial Risk.

12 The Overall financial risk management focuses on the unpredictable financial markets and it is aimed at minimizing potential adverse efforts on the Authority’s financial performance. • Liquidity Risk

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

• Credit Risk Management

The potential credit risk involves short term cash and trade receivables which are managed as follows:-  Short Term Cash Surpluses The Authority deposits her short term cash surpluses with banks of high credit standing at diversified portfolio.  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.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

4.1.1

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Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

4.2 Operational Performance

4.2.1 Traffic Performance During 2008/09, the ports handled a total cargo traffic of 8.824 million tons which is an increase of 0.190 million tons or 2 percent compared to 8.634 million tons handled during 2007/08.

The principal port of Dar er Salaam attributed 7.795 million tons or 94 percent, Tanga port 0.417 million tons or 5 percent, Mtwara port handled 0.122 million tons equivalent to 1 percent.

The minor sea ports of Kilwa, Lindi and Mafia in total handled 0. 327 million tons which is 4 percent of the total cargo handled at all ports.

The major Lake ports handled a total of 0.468 million tons equivalent to 5 percent of all cargo handled at TPA’s ports. The accounted Lake ports are Mwanza North ports 0.327 million tons, Kigoma port 0.132 million tons and Kyela port 8,828 tons. The ports registered a decrease of 31,804 tons or 6 percent when compared to 0.500 million tons handled during 2007/08.

i) Imports and Exports 18 During 2008/09, imports at the sea ports totalled 6.796 million tons which is an increase of 0.483 million tons or 8 percent compared to 6.061 million tons handled during 2007/08. Exports increased slightly to 1.630 million tons from 1.519 million tons handled during 2007/08. Transshiped cargo which is handled only at Dar es Salaam port depicted a decrease to 0.378 million tons from 0.516 million tons handled during 2007/08.

Table 4 : Cargo Traffic at Major Sea Ports 2007/08 2008/09 Imports Exports Total Imports Exports Total Dry Bulk 1,095,296 - 1,095,296 1,587,099 1,587,099 Break Bulk 2,704,871 1,441,947 4,146,818 2,564,800 1,512,465 4,077,265 Liquid Bulk 2,261,402 77,870 2,339,272 2,644,889 117,847 2,762,736 Transshipment - - 516,114 375,762 TOTAL 6,061,569 1,519,817 8,097,500 6,796,788 1,630,312 8,802,862

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

RoRo Vessel operations at Dar es Salaam Port

The major type of cargo handled at the major sea ports were break bulk 4.077 million tons (46%), liquid bulk 2.763 million tons (31%), dry bulk 1.075 million tons (18%) and transshipment 0.376 million tons (5%). When compared to the 2007/08 performance dry bulk and liquid bulk have increased by 45 and 18 percents respectively, while break bulk and transhipment have dropped by 12 and 27 percents respectively. 19

Table 5: Major Type of Cargo handled at the Major Sea Ports (Tons) 2007/08 2008/09 % Imports Exports Total Imports Exports Total Change Change Dry Bulk 1,095,296 - 1,095,296 1,587,099 1,587,099 491,803 44.9 Break Bulk 2,704,871 1,441,947 4,146,818 2,564,800 1,512,465 4,077,265 -69,553 -1.7 Liquid Bulk 2,261,402 77,870 2,339,272 2,644,889 117,847 2,762,736 423,464 18.1 Transshipment - - 516,114 375,762 -140,352 -27.2 TOTAL 6,061,569 1,519,817 8,097,500 6,796,788 1,630,312 8,802,862 705,362 8.7

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Overview of Bukoba Port

20 ii) Shipping Traffic The major sea ports, received a total of 1,357 ship calls with 19.868 million gross registered tonnages (GRT), comprises of 990 calls for international going vessels (deep sea vessels) with 19.708 million GRT and 367 calls of coastal plying vessels (Coasters) with 0.367 million GRT as shown on Table No. 6. Table No. 6: Shipping Traffic at Major Sea Ports

DAR ES SALAAM TANGA MTWARA TOTAL 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 2007/08 2008/09 1. DEEP SEA SHIPS (a). Dry General Cargo

Vessels Number of Calls 331 369 107 96 26 17 464 482 GRT (‘000) 6,914 10,512 564 505 274 212 7,752 11,229 (b). Container Vessels Number of Calls 438 384 438 384 GRT (‘000) 5,680 5,478 5,680 5,478 (b). Tankers Number of Calls 136 122 10 2 146 124 GRT (‘000) 2,838 2,973 120 28 2,958 3,001 Sub-Total -ship call 905 875 117 98 26 17 1,048 990 GRT 15,432 18,963 684 533 274 212 16,390 19,707 2. COASTAL SHIPS (a). Dry Cargo Number of Calls 579 237 168 75 45 27 792 339 GRT (‘000) 223 34 86 35 116 13 425 82 (b). Tankers Number of Calls 78 27 4 1 82 28 GRT (‘000) 40 74 8 4 48 78 Sub-Total -ship call 657 264 168 75 49 28 874 367 GRT 263 108 86 35 124 17 473 160 Grand- Total -ship 1,562 1,139 285 173 75 45 1,922 1,357 calls GRT 15,695 19,071 770 568 398 229 16,863 19,868

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Deep sea ship calls were characterized by 482 calls of dry general cargo vessels with 11.229 million GRT, 384 container vessel calls with 5.478 million GRT and 124 tanker calls with 3.001 million GRT. Coastal vessel calls were comprised of 339 dry cargo vessels with 82,000 GRT and 28 tanker vessels with 78,000 GRT. During the year, the ports also received 2,120 calls of passenger boats and ferries, 584 dhow and schooner calls. Compared to the 2007/08 shipping traffic, calls by deep sea ships have decreased by 58 but the GRT increased by 3,318, depicting that the average size of ships in terms of GRT has increased. Coastal ship calls have also decreased by 565 GRT but GRT increased by 3.005 million.

iii) Passenger Traffic The Authority’s ports also provide the needful services for passenger vessels, embankment and dismemberment of passengers. During the period under review a total of 1,554,766 passengers of which 775,492 embarked and 119,274 disembarked. Compared to the 2007/08 the number of passengers has dropped by 122,738 equivalent to 7.3 percent.

Table 7: Monthly Embarked and Disembarked Passengers

July Aug Sept. Oct. Nov. Dec. Jan. Febr. March April May June TOTAL

2007/08

Emb. 74,483 79,196 67,474 69,732 66,447 86,542 86,791 63,062 62,370 59,610 56,754 61,357 833,818 21 Dis. 74,423 79,437 70,036 70,892 69,189 86,324 82,059 65,824 66,554 64,806 59,405 56,737 845,686

Total 148,906 158,633 137,510 140,624 135,636 172,866 168,850 128,886 128,924 124,416 116,159 118,094 1,679,504

2008/09

Emb. 78,961 75,771 71,473 57,512 53,352 71,701 64,445 55,555 28,231 73,584 65,854 79,053 775,492

Dis. 77,750 80,849 68,607 56,862 54,024 73,348 64,579 54,530 26,522 74,564 67,519 80,120 779,274

Passenger and Cargo handling at Mwanza Port

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Total 156,711 156,620 140,080 114,374 107,376 145,049 129,024 110,085 54,753 148,148 133,373 159,173 1,554,766

During 2008/09, embarked and disembarked passengers at the major inland waterway ports totaled 906,693 compared to 648,073 at the major sea ports. Table 6 Major Ports Embarked and Disembarked Passengers

DAR ES SALAAM TANGA MWANZA KIGOMA KYELA

2008/09 2008/09 2008/09 2008/09 2008/09

Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis. Emb. Dis.

311,454 317,963 7,985 10,671 434,767 434,767 11,861 10,814 9,425 5,059

4.2.2 Individual Port Profiles and Performance. 22 i) Dar es Salaam Port Dar es Salaam is the principal port with intrinsic capacity of 11.0 million tons per annum. Dar es Salaam port handles above 94 percent of the total maritime ports’ throughput. The port is strategically placed to serve not only the East and Central African countries but also the Middle and Far East, Europe, Australia and America. The major land-locked countries served by the port are; 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 metres gauge), road network and TAZAMA pipeline to Zambia.

Port operation activities are carried out by two different operators. Tanzania International Container Services (TICTS), the private operator is operating the Container Terminal and Tanzania Ports Authority, the Land Load operating the rest of the terminals. That’s General Cargo Terminal, Grain Terminal and Oil Terminal.

During 2008/09, a total of 7.795 million tons were handled at Dar es Salaam port, equivalent to 70 percent of capacity utilization. This was an increase of 0.318 million tons equivalent to 4.2 percent compared to 7.476 million tons handled during 2007/08.

Out of the total cargo handled, 5.074 million tons equivalent to 65 percent were handled by the terminals under TPA’s operations while 2.721 miliion tons equivalent to 35 percent were handled by TICTS at the Container Terminal.

a) Imports, Exports and Transshipments.

Imports were 6.181 million tons equivalent to 79 percent of the total cargo. Compared to 5.697 million tons handled during 2007/08 there is an increase of 0.484 million tons or 9 percent.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Table 9: Imports, Exports and Transshipment Cargoes

2007/08 2008/09 Imports Exports Total Imports Exports Total Change %Change Dry Bulk 975,127 - 975,127 1,449,640 1,449,640 474,513 48.66 Break Bulk 2,531,604 1,185,581 3,717,185 2,174,237 1,139,658 3,313,895 -403,290 -10.85 Liquid Bulk 2,190,322 77,870 2,268,192 2,557,513 98,234 2,655,747 387,555 17.09 Transshipment - 516,114 375,762 -140,352 -27.19 TOTAL 5,697,053 1,263,451 7,476,618 6,181,390 1,237,892 7,795,044 318,426 4.26

23

Shed Storage at Dar es Salaam Port

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Exports were 1.238 million tons and Transshipment was 0.376 million tons which have decreased by 25,559 tons and by 0.140 million tons compared to 1.263 million tons and 0.516 million tons handled during 2007/08 respectively.

Imports were dominated by liquid bulk 39 percent or 2.645 million tons, break bulk 38 percent or 2.565 million tons and dry bulk 23 percent or 1.587 million tons. Compared to the 2007/08 imports, both dry bulk and liquid bulk have increased by 48.6 percent or 0.491 million tons and by 17 percent or 0.383 million tons respectively. While a decrease was registered on both break bulk and transshipment by 10.8 percent or 0.446 million tons and 27 percent or 0.140 million tons respectively.

Table 10:- Categories of Cargo (millions tins) 2007/08 2008/09 Change % Change Dry Bulk 975,127 1,449,640 474,513 48.66 Break Bulk 3,717,185 3,313,895 -403,290 -10.85 Liquid Bulk 2,268,197 2,655,747 387,550 17.09 Transshipment 516,114 375,762 -140,352 -27.19

TOTAL 7,476,623 7,795,044 318,421 4.26

24

On exports, break bulk recorded a declined of 7 percent or 0.113 million tons while liquid bulk exports along the coast for local consumption increased by 51 percent or 3.998 million tons.

b) Containerized Traffic

The port handled a total of 0.341million containers of twenty equivalent units (TEUs) carrying 3.214 million tons. Compared to 0.349 TEUs carrying 3.278 million tons handled during 2007/08, was a decrease of 7,301 TEUs or 2 percent and 64,356 tons or 2 percent respectively.

The decrease was depicted in the import containers from 0.183 million TEUs handled in 2007/08 to 0.166 million TEUs while exports increased from 0.166 million TEUs handled in 2007/08 to 0.175 million TEUs.

Containerized dry cargo was 62.9 percent compared to the 62.5 percent in 2007/08

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Table 11 : Penetration of Containerized Cargo 2008/09 (million tons) 2007/08 % 2008/09 % Total Dry Cargo 5.208 100 5.139 100 Containerized 3.278 62.9 3.214 62.5 Un-containerized 1.931 37.1 1.821 37.5

Penetration of containerized cargo in the dry cargo has decreased to 62.5 percent from 62.9 percent registered during 2007/08. 25 Most of the containers, about 90 percent or 0.306 million TEUs were handled at the full fledged Container Terminal under operations of TICTS. Only 10 percent or 35,235 TEUs were handled at General Cargo under operations of TPA.

c) Transit Traffic and Trans - shipment

During 2008/09, transit and transshipment cargoes handled totaled 2.922 million tons which is equivalent to 37 percent of the total cargo handled at the port. Compared to 2.698 million tons handled in 2007/08 there is an increase of 8.3 percent.

Table 12: Transit and Transshipment at Dar es Salaam Port 2008/09 % of Total % of Transit Country 2007/08 2008/09 Traffic Traffic Zambia 973,645 1,089,025 14 37 DR Congo 646,549 544,391 7 19 Burundi 188,382 256,089 3.3 9 Rwanda 136,366 217,260 2.8 7 Malawi 139,486 111,372 1.4 4 Uganda 72,902 28,172 0.4 1 Others & TRM 540,568 675,970 8.7 23 Total Transit 2,697,898 2,922,279 37.5 Tanzania 4,778,720 4,872,804 62.5 Grand Total 7,476,618 7,795,083 100 % Transit/Total 36 37.5

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Transit Traffic VS Total Traffic

d) Shipping Traffic

The port received a total of 875 calls comprised of 369 calls made by international going vessels (deep sea ships) with gross registered tonnages of 18.963 million and 264 calls of coastal plying ships with GRT 0.108 million. Compared to the 2007/08 shipping traffic records, number of calls for the deep sea 26 ships has decreased by 30 but GRT have increased by 3.531 million. It reflects an increase on average size of ships received to maximize economies of scale.

Table 13: Shipping Traffic DAR ES SALAAM 2007/08 2008/09 1. DEEP SEA SHIPS (a). Dry General Cargo Vessels Number of Calls 331 369 GRT (‘000) 6,914 10,512 (b). Container Vessels Number of Calls 438 384 GRT (‘000) 5,680 5,478 (b). Tankers Number of Calls 136 122 GRT (‘000) 2,838 2,973 Sub-Total -ship call 905 875 GRT(000) 15,432 18,963 2. COASTAL SHIPS (a). Dry Cargo Number of Calls 579 237 GRT (‘000) 223 34 (b). Tankers Number of Calls 78 27 GRT (‘000) 40 74 Sub-Total -ship call 657 264 GRT (000) 263 108 Grand- Total -ship calls 1,562 1,139 GRT(000) 15,695 19,071 Calls by passenger boats, dhows, schooners and other miscellaneous vessels were 2,802 which is decrease of 126 calls compared to 2,928 calls recorded in 2007/08.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

e) Passenger Traffic

A total of 629,417 passengers passed through the port, of which 311,454 embarked and 317,963 disembarked. The number has decreased by 103,150 passengers or 14 percent compared to 732,567 passengers handled during the year 2007/08.

Table 14: Passenger Traffic 2007/08 Compared to 2008/09. 2007/08 2008/09 Embarked. Disembarked. Embarked. Disembarked. 352,297 380,270 311,454 317,963

f) Port Productivity

• General Cargo Terminal

Productivity at the General Cargo Terminal was 258.3 tons for break bulk, 725.0 tons for dry bulk and 135 units of motor vehicles. Compared to the 2007/08 achievements, the productivity for break bulk and dry bulk improved from 247.6 tons and 335.2 tons respectively, while motor vehicles decreased by 29 units of motor vehicle or 18 percent.

Table. 15: Productivity per Gang Shift for General Cargo.

2007/08 2008/09 27 Vehicles Vehicles Break Bulk Dry Bulk Break Bulk Dry Bulk (Units/Shift) (Units/Shift) 247.6 335.2 164 258.3 725.0 135

• Container Terminal.

Container moves per ship-to-shore gantry crane (SSG) per 24 hours

Productivity at Container Terminal has improved to an averaged of 459 container moves per ship-to- shore gantry crane (SSG) per 24 hours compared to 419 moves was recorded 2007/08.

ii) TANGA PORT

Tanga is a lighterage port with annual rated capacity of 0.5 million tons at two shallow berths.

During 2008/09, the port handled a total of 0.417 million tons and attained 83 percent capacity utilization. Cargo handled has decreased by 72,806 tons or 14.8 percent compared to 0.490 million tons handled during 2007/08.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Table 16: Cargo Traffic handled 2007/078 2008/09

Imports Exports Total Imports Exports Total Change %Change

Dry Bulk 120,169 172,339 292,508 137,459 137,459 -155,049 -53.0 Break Bulk 134,308 134,308 104,077 147,827 251,904 117,596 87.6 Liquid Bulk 63,303 63,303 27,950 27,950 -35,353 -55.8 TOTAL 317,780 172,339 490,119 269,486 147,827 417,313 -72,806 -14.9

a) Imports and Exports Imports and exports were 269,486 tons and 172,339 tons respectively. Compared to cargo handled during 2007/08, both imports and exports decreased by 15 and 14 percents respectively.

b) Containerized Cargo Traffic

Of the total dry cargo handled, 174,359 tons or 44.7 percent were containerized in 14,898 TEUs. Compared to 2007/08, 127,905 tons or 30 percent were containerized in 10,964 TEUs. The share of containerized to the dry cargo was and 2007/08 were 59 percent and 57 percent respectively. 28 Table 17: Containerized Cargo 2007/08 2008/09 Containerized Containerized Dry Cargo TEU’s Tons % Dry Cargo TEU’s Tons % Imports 254,477 5,475 83,128 32.7 241,536 7,767 110,261 45.6 Exports 172,339 5,489 44,777 26 147,827 7,131 64,098 43.4

Total 426,816 10,964 127,905 59 389,363 14,898 174,359 0.45

c) Shipping Traffic

The port received a total of 117 calls of international going vessels (deep sea ships) with gross registered tonnages (GRT) 0.684 million. Calls made by coastal plying vessels 168 with 86,000 GRT. During 2007/08, deep sea ships were 123 with 0.897 million GRT. The number of calls has decreased by 6 and GRT by 0.213 million.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Table 18: Shipping Traffic 2007/08 2008/09 1. DEEP SEA SHIPS (a). Dry General Cargo Vessels Number of Calls 100 107 GRT (‘000) 864 564 (b). Container Vessels Number of Calls GRT (‘000) (b). Tankers Number of Calls 23 10 GRT (‘000) 33 120 Sub-Total -ship call 123 117 -GRT 897 684 2. COASTAL SHIPS (a). Dry Cargo Number of Calls 104 168 GRT (‘000) 61 86 (b). Tankers Number of Calls GRT (‘000) Sub-Total -ship call 108 168 -GRT 65 86 Grand- Total -ship call 231 285 -GRT 962 770 Passengers Boats, Ferries, Dhow, Schooners & Others 53 128 29 Passenger boats, dhows, schooners and other miscellaneous vessels made 128 calls which is an increase of 75 calls compared to 53 calls in 2007/08

d) Productivity

Productivity for general cargo was on average of 305.7 tons per gang compared to 321.6 tons recorded during the year 2006/08.

Overview of the Tanga Port

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

e) Passenger traffic

The number of passengers passed through the port was 18,656 of which 7,985 embarked and 10,671 disembarked. There was a decrease in number of passengers by 47 percent or 8,727 passengers compared to 9,929 passengers recorded during the 2007/08, of which 4,790 embarked and 5,139 disembarked.

iii) MTWARA PORT

The port has a rated capacity of 0.4 million tons per annum. During the year 2008/09, it handled a total of 0.122 million tons and recorded a 32.7 percent of capacity utilization. Compared to 0.131 million tons handled during 2006/07, cargo has decreased by 12,309 tons or 15 percent.

Table 19: Cargo Traffic

Imports Exports 2007/08 2008/09 2007/08 2008/09 Break Bulk 38,959 44,072 84,027 75,384 Liquid Bulk 7,777 2,613 30 Total 46,736 46,685 84,027 75,384

Mtwara Port

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

a) Imports and Exports The decrease in cargo traffic handled at Mtwara port was depicted in both imports and exports. Imports decreased to 46,685 tons from 46,736 tons and exports to 75,384 tons from 75,384 tons.

b) Containerized Cargo A total 8,418 TEUs were handled at the port carrying 92,552 tons which was equivalent to 60 percent of the total dry cargo handled. During 2007/08, 103,248 tons were containerized in 9,274 TEUs which was 86 percent penetration into the total dry cargo.

Table 20 : Containerized Cargo.

2007/08 2008/09 Containerized Containerized

Dry Cargo TEU’s Tons % Dry Cargo TEU’s Tons %

Imports 38,959 4,589 10,550 27.1 53,050 4,283 9,852 18.6

Exports 81,027 4,685 92,698 114.4 100,185 4,135 82,700 82.5

Total 119,986 9,274 103,248 86 153,235 8,418 92,552 60

31

c) Shipping Traffic

Dry general cargo ships made a total of 17 calls with 212 GRT at the port compared to 26 calls with 274 GRT received during 2007/08.

Coastal plying vessels made a total of 28 calls which was comprised of 13 calls of dry cargo vessels with 13,000 GRT and 1 call of tanker vessel with 4,000 GRT. During 2007/08, dry cargo vessels made 45 calls with 116 GRT while taker vessels made 4 calls with 8,000 GRT.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Table 21: Shipping Traffic

2007/08 2008/09 1. DEEP SEA SHIPS (a). Dry General Cargo Vessels Number of Calls 26 17 GRT (‘000) 274 212 2. COASTAL SHIPS (a). Dry Cargo Number of Calls 45 27 GRT (‘000) 116 13 (b). Tankers Number of Calls 4 1 GRT (‘000) 8 4 Passengers Boats, Ferries, Dhow, Schooners & Others 56

d) Productivity Productivity for general cargo has improved to an average of 290.2.0 tons per gang from 204.0 tons 32 recorded during the year 2007/08.

4.3 Market Analysis Introduction

TPA ports serve a total of seven countries i.e., Tanzania, Malawi, Zambia, DRC, Burundi, Rwanda and Uganda. The seven countries have a total area of 4.5 million square km and population of close to 160 million with total estimated annual seaborne traffic of over 16.0 million tons. Tanzania contributed close to 63% of TPA ports’ traffic in 2008/09 (Table 22) while 37% came from the landlocked countries.

Table 22 : Transit and Transshipment at Dar es Salaam Port 2008/09 % of Total % of Transit Country 2007/08 2008/09 Traffic Traffic Zambia 973,645 1,089,025 14 37 DR Congo 646,549 544,391 7 19 Burundi 188,382 256,089 3.3 9 Rwanda 136,366 217,260 2.8 7 Malawi 139,486 111,372 1.4 4 Uganda 72,902 28,172 0.4 1 Others & TRM 540,568 675,970 8.7 23 Total Transit 2,697,898 2,922,279 37.5 Tanzania 4,778,720 4,872,804 62.5 Grand Total 7,476,618 7,795,083 100 % Transit/Total 36 37.5

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Transit Traffic VS Total Traffic

Zambia During the year under review, Zambia was the major user of Dar es Salaam port among the landlocked countries and contributed 14% of the total traffic and 37% of the total transit traffic. The major export traffic from Zambia is copper and the major import commodities are crude petroleum through the SPM and fertilizer. TAZARA is the major link to this market and distance-wise is shorter by 700 km from the Copperbelt to Dar es Salaam when compared to South African ports. Performance of TAZARA is critical to Dar Port’s success in this market segment. 33 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. Democratic Republic of Congo During the year under review, DRC contributed 7% of the total traffic and 19% of transit traffic. DRC is potentially a rich country capable of producing more traffic for Dar port because of its abundant mineral wealth. Dar es Salaam route is well situated 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.

The DRC economic prospects are expected to improve given the continuous recovery in agricultural production and sustained growth in the mining sector. 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 link to DRC is via Lake Tanganyika at Kigoma port and then by TRL to Dar es Salaam. Burundi A total of 3% of the total traffic and 9% of transit traffic was contributed by Burundi. Dar es Salaam port is the natural port for Burundi as it is well connected by rail up to Kigoma Port where goods are ferried to Bujumbura port by barges. There is a road link to Bujumbura through the Isaka Dry Port. In the long term, the future prospects for this market are very bright and its tonnage is expected to increase further given the political stability in recent years. Malawi Imports of petroleum products from Malawi continued to dominate the traffic going to Malawi which

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

contributed 1.4% of the total traffic and 4% of transit traffic. The volume of dry cargo to and from Malawi through the port of Dar es Salaam continued to decline. The failure of Dar port to attract Malawi traffic is mainly on account of its proximity to Mozambican ports of Nacala and Beira. Rwanda A total of 2.7% of the total traffic and 7% of transit traffic was contributed by Rwanda. The economic growth for this country is expected to increase even further given the political stability and the economic development programs in place.

Border logistics favour 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. Road transport has recorded significant improvement and delivered the bulk of the cargo. However, the existing strict axle- load limitations and handling at weighbridges made it difficult for Dar Port to attract and handle more bulky commodities from Rwanda. The on-going efforts to revamp the railway sector by extending the central railway line to Kigali and upgrading it to the standard gauge upto Dar es Salaam would provide enough capacity to satisfy the market leading to increased market share for Dar Port. Uganda Uganda contributed less than 0.36% of the total traffic and 1% of transit traffic. The main weakness in this market is the longer physical distance of about 600 km farther up in comparison with the Northern Corridor and the constrained inland transport system. 34 In the absence of an immediate solution to TRL and MSC/URC (for wagon ferries on Lake Victoria) capacity constraints, the Authority teamed up with its marketing services agency in Uganda- M/S TERP GROUP to impress upon the Ugandan shippers to use the road option. Transit time of 4 days between Dar and Kampala had been recorded as a result of the improved road condition and truck operations. However, TPA continued to urge the Ugandan Government to rehabilitate their wagon ferries as the key to success in this market hinges upon an improvement in wagons and ferry availability.

4.4 Ports Investments

During 2008/09, the Authority budgeted to invest a total of 67.433 billion shillings on development projects focusing in provision of reliable and cost effective port services to the satisfaction of the customers.

Major projects completed during the period under review include:

i The Ports Master Plan Study for the period of the next 20 years; ii Consultancy services for Development of Waterfront area at Dar es Salaam port; iii Congestion assessment study at Dar es Salaam port; iv Construction of New Port Control Tower: Installation of VTS, CCTV and terrestrial GMDSS; v Rehabilitation of Shed No. 1 – 3 and 5 - 7 at Dar es Salaam port; vi Maintenance dredging berths 1 – 6 and berth 8 at Dar es Salaam port; vii Construction of additional yard at Dar es Salaam port; viii Construction of new area for TISCAN at Dar es Salaam port; ix Procurement of 4 No. 60 tons Mobile Harbour Cranes; x Construction of New Office block at Itungi port.

Major capital development projects which commenced during the period under review were: i Maintenance dredging berth No. 1 - 5 at Dar es Salaam port; ii Maintenance dredging Tanga port; iii Consultancy services for feasibility study for development of new Container Terminal berths 13 and 14 at Dare s Salaam port;

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

iv Port Security Improvement in accordance with ISPS code; v Procurement of Total Integrated Security System; vi Procurement of three container Reach Stackers for Dar es Salaam, Tanga and Mtwara.

4.5 ICT Enhancement In cognizance of the fast changing technologies in both port and shipping industries that involve enhanced ICT, the Authority is undertaking a significant computerization of the key ports’ operational areas, namely; i. Port operation and related activities ii. Management information System iii. Port Community System Procurement and installation of computer prorammes for port operations on Harbour View, General Cargo and Resource Management Systems have been completed; pilot run conducted and training of users is on going. Other modules of port operation systems to be installed include yard planning and billing System. Port Computerization is expected to be completed by 2011/2012

Management Information System for management functions for speeding up decision making process is in process. The project is in phases and the first phase is the installation of the Financial Management System and Human Resource System. Other modules will be acquired and implemented by 2011/2012.

Port Community system will be installed to integrate Ports stakeholders systems and to create a single window system for all port users. This project is at the stage of procuring consultancy services and is planned for completion by 2011/2012.

The Authority is also implementing a mult-billion project on Data Communication that involves construction of LAN, installation of WAN, modems, routers and switches for Tanga, Mtwara, Mwanza, Kigoma and Kyela and ERP Solution for all Ports. Implementation is on going and by the end of this 35 period under review, the project was at 60% completion. The Headquarter and Dar es Salaam port are already connected with a state of the art Local Area Network (LAN) using fiber optic backhaul and wireless backhaul as a backup.

TPA regional and Lake Ports will be installed with Wide Area Network (WAN). It is envisaged that all TPA ports will share common Port Operation and Management Information Systems and they will be connected by Virtual Private Networks (VPN). The project is at the construction stage and is expected to be completed by the end of financial year 2010/2011.

4.6 Port Safety, Security and Environmental Issues The Authority is determined to ensure safer ports workplaces and environment that promote sustainable development. Key basic steps taken deliberately to ensure effective and adequate industrial safety, health and environment management system, includes; (i) Identification and prevention of all ports associated hazards (ii) To protect the ports workforces and environment (iii) Formulate OSHE regulations and guidelines. (iv) Formulate Fire and Safety standard operations procedures

Environmentally, the Authority has been taking measures to strengthen ports preparedness for natural disasters and protection of the environment. TPA continues to observe environmental requirements in all projects implemented and develop waste reception facility.

The Authority has assessed and identified the ports environmental requirements in the next twenty years, which, among others consider the following;

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Table 23: Environmental Needs Assessment 2008 - 2028

CROSS CUTTING ISSUES

S/N0 IDENTIFIED NEEDS 2008- 2023- 2013-2018 2018-2023 2013 2028

Port Receiption facilities Tanga, Mtwara, Lake Kigoma, 1 (sewage, Bilge water, Ballast DSM Others Victoria Nyasa Waters etc)

Health, Safety, Environment and 2 Social Awareness Programme All Ports All Ports All Ports All Ports (AIDS inclusive)

3 Training Programme All Ports All Ports All Ports All Ports

4 EMS (ISO 14001 Family) All Ports All Ports All Ports All Ports

5 Environment Audit All Ports All Ports All Ports All Ports

Environment Management 6 All Ports All Ports All Ports All Ports Review and Monitoring

36 Emergency preparedness Plan 7 All Ports All Ports All Ports All Ports (Oil, Fire, Natural Catastrophy)

BOAT (Oil Combatment and sea 8 All Ports All Ports All Ports All Ports surface cleaning)

Concern over climate change has grown significantly in the last few years. The Authority shares that concern and will continue to actively assess and implement steps to minimize its contributions to this global problem.

Falling of water levels in lake ports and increasing siltation at Dar es Salaam and Lindi ports are among the environmental challenges facing TPA ports today. During the accounting period, the Authority has been taking measures to restore the original water levels by carrying out maintenance dredging along the berths at Dar es Salaam and Tanga. For the case of lake ports the Authority has procured a dredging machine which will be deployed to restore depths along the jetties.

The Authority control of sea pollution is enforced by international guidelines and national legislation, such as; the International Maritime Organization (IMO) and MARPOL Convention.

Implementation of security matters was focused on ISPS code compliance. During the period under review, training on ISPS Code for a total of 219 participants comprises of 150 security personnel and 69 stake holders inclusive of port users, shipping and clearing and forwarding agents was successful conducted. A consultancy services on optimum CCTV Network System to the major sea ports was concluded in June 2009. Designing and installation works are planned to take place in 2000/11.

4.7 Human Capital Development The Authority is committed to uphold employment practices and policies which recognize the diversity of its workforce and ensure equality regardless of employee’s gender, race, disability, age, sexual orientation or religious belief.

The Authority’s Human Capital Development Strategy is centered on labour force development with the major focus on the following;.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

• Change Management • Recruitment and Selection • New Performance Management Approach • Learning, Training and Development • HR Maintenance functions The strategies are geared to tackle the adverse impacts born with the freezing of recruitment imposed in 1990s when the Authority was specified for privatization, though it was de-specified in 1996. The Authority had to evolve and implement the new organisation structure to match with the requirements of the Port Act 2004. Vacant posts were diligently filled, including the key post of Deputy Director General for Infrastructure Development. To that effect, the strategies on recruitment and succession plan were also reviewed to cater for the turnover of staff due to death and expected retirement in the near future years.

The Authority entered into Performance Contract with all of her managers that seek to achieve a quality performance in attainment of their goals. The study on Training Needs Analysis (TNA) was conducted to identify the required skills and design suitable training programmes for staff.

During 2008/09, a total of 663 employees attended various training courses, of which 607 attended locally conducted courses while 26 were trained abroad.

Table 24 – TPA Staff Trained 2008/2009

Quarterly Totals Period Institution/Place 1st 2nd 3rd 4th Total 37 Bandari College 0 17 38 0 55 2008/2009 Local Institutions 64 29 132 327 552 Abroad 0 3 5 18 26 Total 64 49 175 345 633

As at June 30th 2009 the number of staff on permanent and on contract/temporary staff decreased to 3,317 from 3,388 on June 30th 2008.

4.8 Industrial Relationship

Relationships between management and employees continued to be good and stable. Management continued to honor the voluntary agreement entered with the Workers Union. During the accounting period, workers Organs i.e. the Central Joint Industrial Council (CJIC) and the Master Workers Council were fully involved in the planning and evaluation of the Authority’s targets.

4.9 Gender Balance The Authority is striving for gender balance, whereby, whoever has ability to perform at management levels and has been very keen in appointing women in various managerial levels provided that they have ability, qualification and integrity. So far the Authority has three women at the level of Directors, one of whom has been serving in the post of Assistant Director General.

4.10 HIV/AIDS During the year, the Authority continued to provide free medical care to all staff, spouses and up to four

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

children not exceeding eighteen years of age.

The Authority through her Medical Department has carried out various HIV/AIDS awareness campaigns by conducting seminars and consultations to her employees and their families. Appointment of Counselors was made in an effort to fight HIV/AIDS. All employees and theirs families are encouraged to volunteer for HIV/AIDS test. Number of patient died with HIV during the year decreased to 10 compared to 13 recorded over the last year.

4.11 Corporate Social Responsibility The Authority continued to honour her corporate social responsibility through supporting community development activities. Contributions were also made to several Governmental and non Governmental education and Social trust Funds.

The Authority gives equal opportunities to disabled persons for vacancies they are able to fill. The Authority under the Workman’s Compensation Act compensated employees who became disabled while in services of the Authority accordingly.

38 4.12 Corporate Governance Tanzania Ports Authority is committed to the highest standards of corporate governance. The Committee on good governance was established in 2006 and continued to monitor and deal with governance issues in the Authority.

The operations and management of ports continued to be guided by the Ports Act No. 17 of 2004 and adhere to other instrumentation including the Labour and employment Act, SUMATRA Act, NEMC Act, International legislations under the IMO, TPA Regulations and Procurement Act. The objective is to ensure accountability, transparency in the organizations relationships with stakeholders (financiers, customers, management, employees, government and the community.

To that effect TPA Board of Directors has established and maintains an Internal Audit Unit, IT Unit, Audit Committee, Tender Board, Corporate Management Systems Unit and Procurement Management Unit to ensure adherence to regulations, quality management, quality environment, adequate control, coordination and follow-up.

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

39

Handling of Tanker at Kurasino Oil Jetty

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

40 statistical statements

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 8824201 107364 77687 375762 1559205 6704183 2008/09 8634305 181040 125401 516114 1598355 6213395 All Ports All 2007/08 8828 210 852 7118 648 2008/09 7960 968 2100 3250 KYELA 1642 2007/08 132404 10220 2868 17549 101767 2008/09 98448 19444 7056 10565 KIGOMA 61383 2007/08 327204 96934 73967 66855 89448 2008/09 393832 160628 116245 54431 62528 MWANZA 2007/08

41 21339 6580 14759 2008/09 36565 10292 26273 KLM* 2007/08 2007/08 - 2008/09 2007/08 122069 75384 46685 2008/09 CARGO TRAFFIC AT TPA PORTS PORTS TPA AT TRAFFIC CARGO 130763 84027 MTWARA 46736 2007/08 417313 147827 269486 2008/09 490119 172339 TANGA 317780 2007/08 7795044 375762 1237892 6181390 2008/09 7476618 516114 1263451 DAR ES SALAAM DAR 5697053 2007/08 * Kilwa, Lindi and * Kilwa, Mtwara Sub - Total Inwards Outwards Transshipment Exports Statement - 1: Imports

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 8,802,862 8,802,862 1,630,312 1,630,312 375,762 117,847 117,847 1,512,465 1,512,465 6,796,788 6,796,788 2,644,889 2,564,800 1,587,099 1,587,099 2008/09 8,597,740 8,597,740 1,713,464 1,713,464 516,114 77,870 77,870 1,635,594 1,635,594 6,368,162 6,368,162 2,261,402 2,261,402 3,011,464 3,011,464 1,095,296 1,095,296 TOTAL 2007/08 8,828 8,828 7,970 7,970 - 7,970 7,970 858 - 858 - 2008/09 (DWT) 7,960 7,960 5,350 5,350 - 5,350 5,350 2,610 2,610 - 2,610 2,610 - KYELA 2007/08 132,404 132,404 20,417 20,417 - 20,417 20,417 111,987 111,987 - 111,987 111,987 - 2008/09 98,448 98,448 17,621 17,621 - 17,621 17,621 80,827 80,827 - 80,827 80,827 - KIGOMA 42 2007/08 327,204 327,204 140,822 140,822 19,613 19,613 121,209 121,209 186,382 186,382 56,813 56,813 129,569 129,569 - 2008/09 393,832 393,832 170,676 170,676 - 170,676 170,676 223,156 223,156 - 223,156 223,156 - MWANZA 2007/08 122,069 122,069 75,384 75,384 75,384 75,384 46,685 2,613 2,613 44,072 44,072 - 2008/09 2007/08 COMPARED WITH 2008/09 WITH COMPARED 2007/08 130,763 130,763 84,027 84,027 84,027 84,027 46,736 46,736 7,777 7,777 38,959 38,959 - MTWARA 2007/08 CARGO TRAFFIC HANDLED AT MAJOR PORTS PORTS MAJOR AT HANDLED TRAFFIC CARGO 417,313 417,313 147,827 147,827 0 147,827 147,827 269,486 269,486 27,950 27,950 104,077 104,077 137,459 137,459 2008/09 490,119 490,119 172,339 172,339 0 172,339 172,339 317,780 317,780 63,303 63,303 134,308 134,308 120,169 120,169 TANGA 2007/08 375,762 375,762 7,795,044 1,237,892 1,237,892 98,234 98,234 1,139,658 1,139,658 6,181,390 6,181,390 2,557,513 2,557,513 2,174,237 2,174,237 1,449,640 1,449,640 2008/09 516,114 516,114 7,476,618 1,263,451 1,263,451 77,870 77,870 1,185,581 1,185,581 5,697,053 5,697,053 2,190,322 2,190,322 2,531,604 2,531,604 975,127 975,127 DAR ES SALAAM DAR 2007/08 Transhipments TOTAL GRAND Sub - Total Liquid Bulk EXPORTS Bulk Break Sub - Total Liquid Bulk Break Bulk Break IMPORTS Dry Bulk Statement - 2:

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 7,795,044 7,795,044 1,237,892 1,237,892 98,234 98,234 1,139,658 1,139,658 6,557,152 6,557,152 2,557,513 2,557,513 1,449,640 1,449,640 2,549,999 2008/09 7,829,893 7,829,893 1,382,685 1,382,685 77,870 77,870 1,304,815 1,304,815

6,447,208 6,447,208 1,949,494 1,949,494 985,505 985,505 3,512,209 3,512,209 2007/08 TOTAL (DWT) 675,970 675,970 222,037 222,037 - 222,037 222,037 453,933 453,933 17,409 17,409 436,524 436,524 2008/09 540,568 5,220 5,220 - 5,220 5,220 535,348 535,348 6,000 - 529,348 529,348 2007/08 Others & Transhipment 28,133 28,133 1,815 1,815 - 1,815 1,815

26,318 26,318 6,650 19,668 19,668 2008/09 72,903 72,903 3,837 3,837 - 3,837 3,837

69,066 69,066 25,119 25,119 - 43,947 43,947 2007/08 UGANDA 111,372 111,372 1,994 1,994 - 1,994 1,994

109,378 109,378 81,370 81,370 28,008 28,008 2008/09 139,486 139,486 5,627 5,627 - 5,627 5,627

133,859 133,859 82,779 82,779 2,453 2,453 48,627 48,627 2007/08 MALAWI 217,260 217,260 8,896 - 8,896

208,364 208,364 90,040 118,324 118,324 2008/09

43 136,366 136,366 11,444 11,444 - 11,444 11,444

124,922 124,922 25,286 25,286 2,116 2,116 97,520 97,520 2007/08 RWANDA 256,089 256,089 21,085 21,085 - 21,085 21,085

235,004 235,004 101,812 101,812 32,890 32,890 100,302 100,302 2008/09 188,382 188,382 18,571 18,571 - 18,571 18,571

169,811 169,811 62,756 62,756 10,378 10,378 96,677 96,677 2007/08 BURUNDI 2007/08 COMPARED WITH 2008/09 WITH COMPARED 2007/08 544,391 544,391 81,581 81,581 - 81,581 81,581

462,810 462,810 167,445 167,445 3,581 3,581 291,784 291,784 2008/09 646,549 100,663 100,663 - 100,663 100,663

545,886 545,886 178,072 178,072 - 367,814 367,814 2007/08 D. R. CONGO 1,089,025 1,089,025 170,625 170,625 - 170,625 170,625

918,400 918,400 656,905 656,905 107,554 107,554 153,941 153,941 2008/09 COUNTRYWISE DISTRIBUTION OF CARGO THROUGH DAR ES SALAAM PORT PORT ES SALAAM DAR THROUGH OF CARGO DISTRIBUTION COUNTRYWISE 973,645 973,645 195,455 195,455 - 195,455 195,455

778,190 778,190 529,599 529,599 38,128 38,128 210,463 210,463 2007/08 ZAMBIA 4,872,804 4,872,804 729,859 729,859 98,234 98,234 631,625 631,625

4,142,945 4,142,945 1,453,291 1,453,291 1,288,206 1,288,206 1,401,448 1,401,448 2008/09 5,372,822 5,372,822 1,041,868 1,041,868 77,870 77,870 963,998

4,330,954 4,330,954 1,280,711 1,280,711 932,430 932,430 2,117,813 2,117,813 2007/08 TANZANIA Statement - 3: GRAND TOTAL GRAND TOTAL EXPORTS TOTAL LIQUID BULK LIQUID BREAK BULK BREAK EXPORTS TOTAL IMPORTS TOTAL LIQUID BULK LIQUID DRY BULK BULK DRY IMPORTS BULK BREAK

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 % 15.7 61.5 43.4 54.7 45.6 62.5 85.9 100.0 100.0 (DWT) TONS 64,098 110,261 173,342 318,898 928,543 2,222,012 3,387,995 1,165,983 1,792,853 CONTAINERIZED 2008/09 7,131 7,767 TEU’s 15,569 19,666 150,718 155,441 174,054 182,238 356,292

44 147,827 281,707 241,536 928,543 2,031,179 1,358,077 5,423,645 1,792,853 4,065,568 DRY CARGO DRY % 7.6 27.1 32.7 53.7 26.0 39.8 48.6 82.0 114.4 100.0 100.0 TONS 44,777 83,128 10,550 92,698 914,162 178,963 265,193 1,919,674 2,278,545 3,509,145 1,230,600 CONTAINERIZED 2007/08 COMPARED WITH 2008/09 WITH COMPARED 2007/08 2007/08 5,475 5,489 4,685 4,589 TEU’s 19,128 20,073 175,731 146,429 193,202 368,933 163,065 CONTAINER PENETRATION IN THE DRY GENERAL CARGO TRADE TRADE CARGO GENERAL DRY IN THE PENETRATION CONTAINER 81,027 38,959 172,339 914,162 333,051 254,477 5,719,841 1,919,674 7,220,420 3,506,731 1,500,579 DRY CARGO DRY GRAND TOTAL GRAND Sub Total Mtwara Tanga Sub Total Mtwara TICTS Tanga EXPORTS Dar es Salaam G/C TICTS Statement - 4 : IMPORTS Dar es Salaam G/C

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 ------92.0 379.0 183.0 435.0 290.2 362.0 2008/09 MTWARA 188 111.0 257.0 114.0 173.0 131.0 210.0 159.0 159.0 193.5 204.0 399.0 354.0 2007/08 337.8 257.8 214.2 303.1 374.3 305.7 372.5 324.4 243.5 204.0 236.5 354.0 446.0 2008/09 TANGA 317.5 277.0 327.0 321.6 274.0 279.0 202.0 359.0 524.0 262.0 533.5 250.0 254.0 2007/08 137.2 110.7 173.1 118.8 122.1 153.7 135.1 126.9 105.0 140.6 108.0 134.3 190.5 Vehicles Units/Shift 45 337.4 2007/08 COMPARED WITH 2008/09 WITH COMPARED 2007/08 732.0 742.8 725.0 623.9 865.4 505.2 846.9 940.3 545.6 540.3 1017.0 1002.8 Dry Bulk 2008/09 PRODUCTIVITY PER GANG SHIFT FOR GENERAL CARGO GENERAL SHIFT FOR GANG PER PRODUCTIVITY 487.4 207.6 207.2 241.8 215.8 201.2 213.6 218.6 259.7 335.8 150.6 360.7 258.3 Break Bulk Break DAR ES SALAAM DAR 112 118 173 174 172 143 129 132 105 180 249 285 164.3 Vehicles Units/Shift 0 296 415.5 601.1 341.8 132.0 369.7 194.8 335.2 455.8 288.3 632.8 294.5 Dry Bulk 2007/08 239 290 257.4 247.6 275.1 275.8 180.1 260.7 203.6 199.9 238.2 266.6 285.3 Break Bulk Break August November January September October December July February April March May June AVERAGE Statement No. 5

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 187.1 187.3 187.2 182.1 186.1 186.1 186.1 186.2 188.0 184.5 185.9 185.0 185.5 Gross 2008/09 TANGA 86.0 187.0 187.0 187.0 178.1 181.0 186.4 188.2 189.0 188.0 188.0 186.0 183.0 Gross 2007/08 Net 477.6 477.6 441.6 429.6 458.4 458.4 459.2 482.4 446.4 456.0 456.0 460.8 465.6

46 2008/09 357.6 427.2 410.4 451.2 379.2 381.6 420.0 429.6 386.4 402.0 388.8 408.0 384.0 Gross DSM PORT Net 336 456 511.2 419.2 472.8 393.6 304.8 280.8 506.4 506.4 506.4 295.2 460.8 2007/08 2007/08 COMPARED WITH 2008/09 WITH COMPARED 2007/08 MOVES/24 HRS FOR CONTAINER TRAFFIC CONTAINER HRS FOR MOVES/24 237.6 410.4 374.4 341.0 242.4 398.4 252.0 304.8 386.4 280.8 396.0 408.0 400.8 Gross Statement - 6: October November December September August July TOTAL AVERAGE TOTAL June May March April January February

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 Dis. 67,519 67,519 77,750 77,750 80,120 80,120 64,579 64,579 26,522 26,522 68,607 68,607 54,024 54,024 73,348 73,348 74,564 74,564 54,530 54,530 80,849 56,862 779,274 2008/09 Emb. 57,512 57,512 71,701 71,701 71,473 71,473 75,771 75,771 28,231 28,231 78,961 78,961 64,445 64,445 79,053 79,053 53,352 53,352 73,584 73,584 55,555 55,555 65,854 775,492 TOTAL Dis. 79,437 79,437 56,737 56,737 74,423 74,423 69,189 69,189 70,036 70,036 59,405 59,405 86,324 86,324 82,059 70,892 70,892 65,824 65,824 66,554 66,554 64,806 845,686 2007/08 Emb. 67,474 67,474 61,357 61,357 86,791 86,791 59,610 59,610 69,732 69,732 79,196 79,196 62,370 62,370 66,447 66,447 56,754 56,754 74,483 74,483 86,542 86,542 63,062 833,818 Dis. 413 413 515 515 377 377 457 457 294 294 398 398 399 399 453 453 505 505 384 382 482 5,059 2008/09 416 416 967 967 651 651 692 692 852 852 924 924 859 859 989 494 968 480 Emb. 9,425 1,133 1,133 KYELA Dis. 176 176 416 416 318 318 327 327 770 770 320 320 300 300 300 300 507 507 236 236 905 905 546 5,121 2007/08 518 518 613 613 703 703 705 705 630 630 826 826 738 738 700 700 624 624 624 624 409 606 Emb. 7,696 Dis. 625 625 968 985 506 858 568 565 1,141 1,141 1,108 1,108 1,033 1,033 1,368 1,368 1,089 1,089 10,814 2008/09 411 411 937 937 901 901 935 935 698 698 992 650 Emb. 1,091 1,091 1,222 1,222 1,091 1,025 1,025 1,908 1,908 11,861 KIGOMA Dis. 771 771 793 793 394 394 934 934 992 1,114 1,114 1,118 1,118 1,016 1,016 1,128 1,128 1,108 1,108 1,368 1,368 1,040 1,040 11,776 2007/08 716 716 937 937 476 476 801 801 851 851 749 749 356 356 945 945 968 406 Emb. 9,658 1,428 1,428 1,025 1,025 - Dis. 37,782 37,782 37,706 37,706 47,400 47,400 40,418 40,418 39,578 39,578 40,551 40,551 49,367 49,367 30,835 30,835 42,340 42,340 32,906 32,906 35,884 35,884 434,767 47 2008/09 - Emb. 37,782 37,782 37,706 37,706 47,400 47,400 40,418 40,418 39,578 39,578 40,551 40,551 49,367 49,367 30,835 30,835 42,340 42,340 32,906 32,906 35,884 35,884 434,767 MWANZA Dis. 37,119 37,119 37,416 37,416 43,116 43,116 45,175 45,175 40,113 40,113 31,748 31,748 33,216 33,216 32,214 32,214 29,618 29,618 30,165 30,165 43,258 43,258 40,222 40,222 443,380 2007/08 Emb. 37,785 37,785 41,912 41,912 37,209 37,209 35,413 35,413 30,518 30,518 44,472 44,472 48,105 48,105 33,921 33,921 31,582 31,582 33,245 33,245 40,362 44,853 459,377 - Dis. 510 510 769 769 837 837 541 541 722 722 768 768 956 1,177 1,177 1,050 1,050 1,053 2,288 2,288 PASSENGER TRAFFIC AT TPA PORTS TPA AT TRAFFIC PASSENGER 10,671 2006/07 COMPARED WITH 2007/08 WITH COMPARED 2006/07 2008/09 - 730 730 743 743 432 432 520 520 449 660 382 545 545 Emb. 7,985 1,119 1,119 1,052 1,052 1,353 1,353 TANGA - - 90 80 Dis. 341 341 764 764 309 309 396 396 496 544 5,139 1,078 1,078 1,041 1,041 2007/08 - - 90 80 712 712 372 372 221 221 764 764 369 369 458 458 546 Emb. 4,790 1,178 1,178 Dis. 20,139 20,139 24,752 24,752 30,182 30,182 24,422 24,422 29,067 29,067 26,621 26,621 23,460 23,460 19,962 19,962 26,260 26,260 18,954 18,954 39,254 39,254 34,890 317,963 2008/09 Emb. 27,126 27,126 20,121 20,121 24,673 24,673 21,283 21,283 25,070 25,070 28,841 28,841 26,247 26,247 35,033 35,033 35,023 35,023 20,490 20,490 18,549 18,549 28,998 28,998 311,454 Dis. 32,757 32,757 31,557 31,557 40,371 40,371 28,132 28,132 32,276 32,276 31,624 31,624 34,374 34,374 31,646 31,646 34,975 34,975 21,584 21,584 26,494 26,494 34,480 34,480 380,270 DAR ES SALAAM ES SALAAM DAR 2007/08 Emb. 27,078 27,078 39,718 39,718 24,371 24,371 31,397 31,397 29,313 29,313 23,753 23,753 24,321 24,321 30,259 30,259 32,520 32,520 29,246 29,246 35,668 35,668 24,653 24,653 352,297 February January January December March April November May September October June August TOTAL July July Statement - 7 :

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 78 28 82 124 367 339 160 990 384 482 1,357 5,478 3,001 19,707 11,229 19,868 TOTAL 82 48 874 473 146 425 438 792 464 7752 1922 1048 2958 5680 16390 16863 2007/08 1 4 17 17 17 27 13 28 45 212 212 229 2008/09 MTWARA 4 8 75 26 26 45 49 116 274 274 124 398 2007/08 48 2 75 75 28 35 35 98 96 173 533 505 568 2008/09 TANGA

10 86 86 117 107 120 770 168 168 285 684 564 2007/08 2007/08 COMPARED TO 2008/09 TO COMPARED 2007/08 27 74 34 SHIPPING TRAFFIC AT MAJOR PORTS PORTS MAJOR AT TRAFFIC SHIPPING 875 237 122 108 264 369 384 1,139 5,478 2,973 19,071 10,512 18,963 2008/09 DAR ES SALAAM DAR 78 40 331 579 657 223 136 438 263 905 6,914 1,562 2,838 5,680 15,432 15,695 2007/08 Sub-Total -ship call -ship Sub-Total GRT (b). Tankers Number of Calls (‘000) GRT SHIPS 2. COASTAL (a). Dry Cargo Number of Calls (‘000) GRT GRT (‘000) GRT (b). Tankers Number of Calls call -ship Sub-Total GRT calls -ship Total Grand- GRT GRT (‘000) GRT Statement - 7 : 1. DEEP SEA SHIPS 1. Vessels Cargo (a). Dry General Number of Calls Vessels (b). Container Number of Calls GRT (‘000) GRT

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 78 28 82 124 339 367 160 990 482 384 1,357 5,478 3,001 19,707 11,229 19,868 TOTAL 82 48 874 473 146 425 438 792 464 7752 1922 1048 2958 5680 16390 16863 2007/08 1 4 17 17 17 27 13 28 45 212 212 229 2008/09 MTWARA 4 8 75 26 26 45 49 116 274 274 124 398 2007/08 2 75 75 28 35 35 98 96 173 533 505 568 49 2008/09 TANGA

10 86 86 117 107 120 770 168 168 285 684 564 2007/08 2007/08 COMPARED TO 2008/09 TO COMPARED 2007/08 SHIPPING TRAFFIC AT MAJOR PORTS MAJOR AT TRAFFIC SHIPPING 27 74 34 875 237 122 108 264 369 384 1,139 5,478 2,973 19,071 10,512 18,963 2008/09 DAR ES SALAAM DAR 78 40 331 579 657 223 136 438 263 905 6,914 1,562 2,838 5,680 15,432 15,695 2007/08 GRT SHIPS 2. COASTAL (a). Dry Cargo Number of Calls Sub-Total -ship call -ship Sub-Total GRT (‘000) GRT (b). Tankers Number of Calls GRT (‘000) GRT (b). Tankers Number of Calls GRT 1. DEEP SEA SHIPS 1. Vessels Cargo (a). Dry General Number of Calls (‘000) GRT (‘000) GRT call -ship Sub-Total GRT Vessels (b). Container Number of Calls (‘000) GRT Statement - 8 Grand- Total -ship calls -ship Total Grand-

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 - - 1 1 1 6 2 1 2 3 1 11 11 14 14 14 14 13 13 10 10 969 969 532 532 2,413 2,413 1,560 1,560 TOTAL 15,450 15,450 32,831 32,831 28,300 28,300 56,455 56,455 28,060 28,060 KYELA KIGOMA MWANZA ------2 1 3 10 395 9,160 10,016 50 MTWARA ------2 9 9 381 24,139 TANGA 4 1 1 1 2 8 2 1 2 1 5 5 11 10 532 588 DSM 2,018 8,692 6,290 1,560 46,439 28,300 28,060 QUAY AND CARGO HANDLING AREAS (30 JUNE 2009) (30 AREAS HANDLING CARGO AND QUAY FACILITIES Berths, Wharves, Jetty etc. Berths No. Deep Water -Total Length (m) Length -Total Depth Dredged Lighterage & Dhow Wharves No. Lighterage Grain Silo (30,000 Tons) (30,000 Silo Grain Single Buoy Mooring (SBM) No. Buoy Mooring Single Bulk Oil Jetty (Tanker Berth) No. Jetty (Tanker Bulk Oil Back of Port Transit Shed No. Transit Back of Port Sheds. -Total Length (m) Length -Total No. Points Handling Stream Shed No. Transit Main Quay Floor Area(m2) -Total Floor Area -Total Passenger, Baggage Hall and Shed No. Baggage Passenger, -Total Floor Area (Ubungo) (m2) (Ubungo) Floor Area -Total (m2) (Kurasini) Floor Area -Total No. Warehouse Customs -Total Floor Area(m2) -Total Depots No. Transit -Total Floor Area(m2) -Total Lighterage Area Transit Shed No. Transit Area Lighterage -Total Floor Area(m2) -Total 10 day Cargo Shed No. Cargo day 10 (a). Statement - 9 (b).

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 - TOTAL 29,745 29,745 22,800 22,800 40,385 158,004 158,004 104,500 104,500 KYELA KIGOMA MWANZA MTWARA - - 28,210 TANGA 51 DSM 3,800 29,745 22,800 40,385 129,794 104,500 QUAY AND CARGO HANDLING AREAS (30 JUNE 2009) (30 AREAS HANDLING CARGO AND QUAY Transit Depots - (Ubungo) (m2) Depots - (Ubungo) Transit (m2) - (Kurasini) The Ports of Lindi, Kilwa Masoko and Mafia have the following facilities: the following and Mafia have Masoko of Lindi, Kilwa The Ports (m2). 1,783 shed - Floor area Transit Dhow Jetty & 3 No: 1 No: Lindi: 300(m2) Godown - floor area Dhow Jetty & 1 Custom 1 No: Masoko; Kilwa as part of the whole of a shed allocated for one berth. taken Shed is Transit A unit 417 (m2) area and Import shed - floor Export Mafia: 1 No. Dhow jetty & - AMI Area (m2) - AMI Area - Container Terminal (m2) Terminal - Container -Total Floor Area (m2) Floor Area -Total (m2) - main Port Floor Area Total Stacking Grounds. Stacking FACILITIES (c). Statement - 9

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Statement - 10 CARGO HANDLING EQUIPMENT AND MARINE CRAFT (BY 30 JUNE 2009) FACILITIES DSM TANGA MTWARA Cargo Handling Equipment Cranes: Portal Crane 24 6 - Mobile Crane 18 6 3 Tower crane 1 Ship to Shore Gantry Crane 3 - - Rubber Tyred Gantry Crane 9 - - Rail Mounted Gantry Crane 1 - - Floating Cranes 1 - -

Operational Equipments Tractors 74 6 4 52 Trailers 150 22 11 Forklifts 84 11 7 Front Loader 27 3 1 Crane Crawlers 1 - - Reach stacker - 1 - Conveyors ( Loading, Chain& Bert) 13 - - Grabs 8 - - Spreader 18 - - Weighbridge 1 - 1 Bucket Elevator 3 - - Grain Hoppers 3 - - Bagging Scales 6 - - Dust coll Unit 3 - - Bagg Units Mobile 3 - -

Marine Crafts Berthing Tugs 6 - 1 Ligther Towing Tugs 1 3 - Lighters 10 18 - Pantoons 9 14 - Labour Launches 2 - Pilot Boats 2 1 Patrol Boats 5 1 1 Mooring Boats 12 2 1 Water Barge 1 SBM Tender 1

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

Statement - 11 NAVIGATIONAL AIDS AND LIGHTS (BY 30th JUNE 2009)

STATION NAVIGATION AID TYPE TOTAL RANGE NM SOURCE OF ABOVE HIGH IN Nos. LIGHTS WATER (MTRS) DSM PORT STEEL BUOYS Red (ps) 11 5.5 - 7 Solar - Gree(s.s) 6 5.5 - 7 “ - Beacons 3 5.5 - 7 Solar - Leading mark/LM 12 10 - 18 “ - Light House (Makatumbe) 1 15 - 96 “ 29 MAFIA CHANNEL STEEL BUOYS 4 3 Gas - Light House Ras Mkumbi 1 15.96 Gas 31 TANGA PORT STEEL BUOYS Red (ps) 2 3 Gas - Green (s.s) 2 5.5 - 7 Solar - Beacons 6 5.5 - 6.1 Gas & Solar Leading mark/LM 7 7 - 12.6 “ Light House 1 14.5 Gas 26 53 MTWARA PORT STEEL BUOYS Red (ps) 1 5.5 - 7 Solar - Green (s.s) 3 5.5 - 7 Solar - GRP Red 1 4 Gas - Leading mark/LM 4 7 - 12.6 Solar 16 Light House 1 18 -14 Gas - LINDI PORT STEEL BUOYS - - - - Red (ps) 1 3 Gas - Green (s.s) 2 3 Gas - Beacons - - - - Leading mark/LM 2 - Gas - Light House 1 - Gas 16 KILWA STEEL BUOYS 3 4 Gas - Leading mark/LM 4 7 - 12.6 Gas -

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 - - - 24,721 71,608 96,575 83,203 110,182 218,106 297,538 515,644 129,355 2008/09 2008/09 Total Total 26,273 10,292 30,945 84,499 95,095 36,565 112,721 151,134 132,262 258,302 348,354 606,656 2007/08 2007/08 - - - 352 1,430 1,782 1,088 14,819 13,037 11,949 2008/09 2008/09 Kyela Mafia - - 430 2,176 1,746 4,428 1,329 9,253 13,681 14,593 15,922 18,098 2007/08 54 2007/08 - - - 1,915 8,740 6,825 11,709 67,960 79,669 88,409 2008/09 2008/09 Lindi Kigoma 1,057 2,139 2,339 8,336 4,854 11,117 11,732 19,687 14,833 83,002 96,258 107,990 2007/08 2007/08 2007/08 COMPARED WITH 2008/09 WITH COMPARED 2007/08 MINOR COASTAL PORTS CARGO TRAFFIC TRAFFIC CARGO PORTS MINOR COASTAL - 41,134 24,721 71,608 93,230 59,545 287,016 412,416 122,178 125,400 2008/09 2008/09 Kilwa Mwanza 2,187 1,010 3,197 47,931 83,442 28,806 69,385 146,122 142,368 334,446 108,636 480,568 2007/08 2007/08 Grand Total Grand Transit Imports Sub Total Inwards Exports Bulk Liquid Imports Exports Statement - 12 Bulk Liquid Sub Total Local Outwards Sub Total TRAFFIC CARGO PORTS LAKE

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 22 22 EXC 4 3 4 8 3 1 8 11 37 15 22 36 90 55 46 44 -22 -20 DIF 515 860 0 3 8 11 14 37 27 87 18 21 77 22 42 93 48 311 116 366 STL 1222 2523 GRAND TOTAL GRAND 0 7 9 11 67 14 30 74 22 22 29 88 63 113 410 148 138 403 EST 1737 3385 2 2 4 EXC 1 2 1 5 3 6 -2 -2 14 DIF 3 0 1 3 1 8 0 3 19 KIGOMA STL 1 2 2 6 3 9 5 5 33 EST EXC 1 0 2 3 1 2 0 6 15 DIF 0 1 0 0 1 0 2 2 KYELA 6 STL 1 1 2 3 2 2 2 8 21 EST 3 3 EXC 4 0 7 3 2 4 -3 31 14 23 DIF 2 3 3 1 0 3 3 10 13 25 MWANZA STL 6 7 3 4 2 7 17 10 36 92 EST 7 1 8 EXC 55 8 2 1 4 5 -7 -1 17 10 20 24 59 DIF 2 1 1 3 0 5 5 5 31 12 60 125 STL MTWARA 0 1 9 5 11 10 10 24 25 29 84 208 EST 7 1 23 -13 -44 EXC 3 1 8 4 -7 -1 -9 -8 16 24 -18 -23 -54 -44 DIF TANGA 0 8 8 2 0 3 7 12 21 43 32 56 457 265 STL 3 1 4 9 5 17 11 67 16 26 29 48 457 221 EST 1 1 1 1 41 15 22 EXC 4 9 2 4 -1 -1 -1 -1 15 47 20 -15 -22 DIF 122 679 497 1 3 1 11 71 12 22 23 24 42 25 60 877 281 190 STL 1643 DAR ES SALAAM DAR 0 0 7 0 11 41 75 69 25 44 40 58 312 266 EST 1374 2322 1 6 11 11 29 SUMMARY OF ESTABLISHMENT AGAINST STRENGTHS AS AT 30/06/2009 AS AT STRENGTHS AGAINST OF ESTABLISHMENT SUMMARY EXC 4 1 2 4 6 4 5 3 3 -1 -6 11 15 29 -11 -11 DIF 0 3 3 1 6 6 6 2 17 11 21 10 18 19 26 26 28 36 239 STL 7 3 1 8 7 5 5 HEAD QUARTERS HEAD 11 12 14 31 12 10 51 30 22 23 20 272 EST Statement - 13 Security College Bandari Secretarial Staff Secretarial Mgt. Unity Procurement TOTAL Secretary & Legal Secretary Relations Public Medical & Safety Fire ICT Marketing Management Services Management Planning Manpower Audit Management Purchasing & Supply Purchasing Engineering Finance Operations

Tanzania Ports Authority www.tanzaniaports.com Annual Report and Accounts for the year ended 30th June, 2009

56

Handling of Tanker at Kurasino Oil Jetty

Tanzania Ports Authority www.tanzaniaports.com