Charges up in East Africa

In its annual Logistics Performance Survey, SCEA stated: “Dar es Salaam has higher shore handling charges than Mombasa for transit exports of TEU. However, Mombasa has higher rates for transit imports. Overall, there has been an increase in port charges between 2014 and 2015.”

The survey covers all five member states of the East African Community (EAC) and assesses the entire logistics chain, ICT and corruption levels. At Mombasa, the rates for imported containers increased from US$105 in 2014 to US$160 last year and for exports from US$56 to US$80. Rates at Dar es Salaam have been greatly altered to encourage exports: imported containers are now charged US$135, up from US$90 in 2014; while the rates for exports were cut from US$90 to US$20.

Both ports handle far more imports than exports. There were similar changes for transit containers, although the charges for export transit containers at Dar jumped from US$80 to US$210.

Among the most interesting data concerned the primary causes of delays in releasing cargo from the two ports. A total of 33% companies blamed lengthy official procedures; 25% cited ICT problems; 13% infrastructural issues; 13% the number of different agencies to be dealt with; and 6% bribe-seeking.

The survey found that that corruption was “still rampant” in the logistics sector as a whole and added: “Compliance levels by shippers and transporters have not shown great improvement, thereby inviting thorough and stringent checks at weighbridges and police checkpoints. Lengthy delays are experienced and significant amounts of money are wasted as a result.”

Sweeping personnel changes at Mombasa and Dar ports and Kenyan and Tanzanian customs/revenue authorities have been separately reported by WorldCargo News and worldcargonews online.