The Kenya Ports Authority (KPA) in a bid to reduce costs and enhance efficiency has recently issued a customer notice regarding changes to their storage fees and free period for transit cargo that will . This notice, which comes into effect on May 1st, 2023, states that the storage free period for transit cargo will be extended from the current 9 days to 15 days. Additionally, there will be a reduction in the number of storage bands for transit cargo, from 6 bands to 4 bands.

These changes are aimed at reducing costs and enhancing efficiency for importers and exporters using the port. The extended free period will provide more time for cargo owners to clear their goods and reduce the number of demurrage charges incurred. Demurrage charges are fees charged for the storage of goods beyond the free period, and the reduction in the number of storage bands will simplify the process of calculating these charges.

The customer notice is one of the many steps taken by the authority to improve the operational efficiency of the port and make doing business more cost-effective. It follows other recent initiatives, such as the introduction of the Single Window System, which allows for the electronic submission of import and export documentation, and the upgrading of port infrastructure to accommodate larger vessels.

The KPA’s efforts to streamline operations and reduce costs are particularly important given the competitive nature of the global shipping industry. By reducing the costs associated with using the port, the KPA can attract more business from importers and exporters, thereby boosting the regional economy.

A positive development for importers and exporters using the port, these changes will provide more time for cargo owners to clear their goods and simplify the process of calculating demurrage charges, ultimately reducing costs and enhancing efficiency.

Multilines International Limited, an East African Authorized Economic Operator (AEO), was invited the
esteemed attendees at the recent launch of the Mutual Recognition Agreement (MRA) between
China and Uganda. The event, held on June 1st, 2023, marked a significant milestone in strengthening
bilateral trade ties and facilitating smoother customs procedures between the two nations.
The event featured notable speakers, including Mr. James Malinzi, Assistant Commissioner Customs
Audit, URA. Malinzi highlighted the importance of the MRA, which was signed in May 2021, and its
impact on trade facilitation. He disclosed that Uganda currently boasts 118 AEOs, while China has
over 5,000 registered AEOs. Recognizing the significance of AEOs in streamlining trade, he announced
that importers will enjoy priority clearance for AEO companies, ensuring expeditious processing of
goods exported between the two countries.
Commissioner Customs at URA, Abel Kagumire, emphasized the crucial role AEOs play in Uganda’s
revenue collection, contributing a substantial 26% to URA’s overall revenue. Kagumire urged local
industries to add value to key export commodities such as timber, coffee, marble, and cocoa, enabling
the exportation of finished products. This value addition would enhance Uganda’s competitiveness in
international markets.
H.E. Ozhang Lizhong, Chinese Ambassador to Uganda, expressed optimism about the implementation
of the MRA, underscoring the exchange of lists between AEO companies in both nations. He
emphasized the tremendous advantages the MRA brings, including expedited customs clearance,
estimated to improve clearance speed by 60% compared to previous procedures. Additionally, the
MRA is expected to save 10% in logistics costs, leading to enhanced trade efficiency.
Highlighting the growth potential, Ambassador Lizhong revealed that bilateral trade volume between
China and Uganda rose by 6.6% in 2022, reaching a substantial $1.14 billion USD. Furthermore, he
acknowledged China’s recent decision to grant zero-tariff treatment for 98% of taxable items
imported from Uganda, further boosting Uganda’s export of value-added products to the Chinese
market. In line with promoting tourism and investment, discussions are underway for the
establishment of a new direct flight between Entebbe and Guangzhou, with hopes of actualization
within a month.
Rubagumya Patience, Acting Commissioner General of URA, emphasized the importance of utilizing
tax revenues for economic development rather than relying on external borrowing. To achieve this,
she stressed the need for closer cooperation between customs and domestic taxes to facilitate
seamless trade operations. Faster clearance of goods through the MRA would attract more business
and contribute to accelerated economic growth. Patience highlighted tourism, agriculture, oil, and gas
as priority sectors for government support, aiming to attract increased investment.
For Multilines International, the MRA is envisioned to create a ripple effect across various sectors in
the trading community particularly the oil and gas, tourism, and construction sectors
, leading to improved economic conditions in the community.

In a time of unprecedented global disruptions caused by the Covid-19 pandemic, conflicts, and climate change, the Tanzania Port Authority (TPA) has unveiled a strategic initiative that promises to reshape the trade landscape in the region. The recent announcement of a free 30-day storage period for Ugandan importers signifies not just a shift in logistics dynamics, but also a bold step towards fostering trade confidence and growth. This landmark decision, unveiled at the FIATA-RAME 2023 Logistics Conference in Kampala, Uganda, aims to pave the way for a new era of resilient trade relations.
Navigating the Trade Challenges
Tanzania’s efforts to attract Ugandan importers have faced challenges, including high transportation costs and geographical disparities. The allure of the Mombasa port, with its proximity and cost efficiency, has often overshadowed the Dar es Salaam port. The statistics from 2018 illustrate this point: transporting a container from Dar es Salaam to Kampala cost around $4,800, while the same journey from Mombasa cost $2,700.
TPA’s Vision: Bridging Gaps and Building Confidence
TPA’s strategic move holds the promise of reversing this narrative by fostering a conducive business environment. Dr. Jane Buberwa, an expert based in Dar es Salaam, stresses the pivotal role of customer-centric strategies in attracting traders. She asserts that providing better customer care can significantly contribute to Tanzania’s vision of expanding port capacity to 30 million tonnes by 2030.
“Better customer care can woo more freight forwarders, even considering the distance factor,” Dr. Buberwa affirms, underlining the transformative potential of exceptional service quality.
Strategic Incentives: Empowering Trade
Beyond rhetoric, TPA is backing its commitment with strategic initiatives. A dedicated Ugandan shed for consolidation and deconsolidation purposes, specifically for imports, is a tangible testament to this commitment. This facility operates around the clock, offering a consolidation center that caters to the requirements of stakeholders. Additionally, the 30-day storage period serves as a crucial asset, facilitating practical and realistic import planning.
Mr. Yesaya Masangya, Marketing Manager at TPA, underscores the significance of this storage period. He emphasizes that it aligns with the needs of traders while ensuring compliance with industry standards.
Building the Trade Ecosystem: A Collaborative Approach
Dr. Abdul Mkongwa, an economist from the University of Dar es Salaam, recognizes the far-reaching impact of empowering traders. By offering opportunities and demonstrating unwavering commitment, Tanzania’s ports can emerge as preferred choices. Dr. Mkongwa notes that traders communicate among themselves, and the positive reputation of the ports can drive increased utilization and engagement.
Multilines International Limited: A Potential Participant
As a prominent freight forwarder in the region, Multilines International Limited emerges as a potential key player in this transformative journey. With a comprehensive suite of logistics services encompassing air and sea freight, customs brokerage, warehousing, and distribution, Multilines is poised to support the anticipated surge in trade activity driven by TPA’s strategic initiatives.
In Conclusion: Charting a New Trade Landscape
TPA’s introduction of a free 30-day storage period for Ugandan importers signifies more than just a pragmatic incentive; it symbolizes a commitment to nurturing thriving trade relations. With a well-defined vision and support from potential stakeholders like Multilines International Limited, Tanzania stands poised to usher in a new era of dynamic regional trade.
As we witness this strategic evolution, Multilines International Limited remains dedicated to offering top-tier logistics solutions aligned with evolving trade demands. Delve into Multilines’ array of services, and embark on a journey towards seamless trade excellence.

Multilines International is excited to share the latest developments in the logistics and cargo industry that directly impact our operations at the Dar es Salaam Port. The Tanzanian government has signed three pivotal investment and operation contracts with the Dubai-based DP World Company, aimed at revolutionizing the port’s efficiency and performance. These developments signify a significant milestone in our ongoing efforts to improve import and export logistics for our clients.

A New Era for Dar es Salaam Port:

The signing of these contracts, which occurred at Chamwino State House in Dodoma and was witnessed by President Samia Suluhu Hassan, is poised to bring a new era of efficiency and prosperity to the Dar es Salaam Port. The contracts include the Host Government Agreement (HGA), the lease and operation of berths 4-7, and the joint operation of berths 0-3. These agreements, which will have a duration of 30 years, represent a substantial step towards modernizing the port’s operations.

Enhanced Efficiency and Revenue Generation:

The partnership with DP World promises to streamline port operations, reduce document processing time, and ultimately enhance the services provided to ships and cargo. This improved efficiency is expected to attract more ships and cargo to pass through Dar es Salaam Port, stimulating growth in the logistics industry.

One significant change is that, previously, the government was using 90 percent of revenue collected from leased areas in port operations, retaining only 10 percent. With these new agreements in place, the government will now be able to keep more than 60 percent of all revenue, as all operating costs will be borne by DP World. This change is expected to lead to a substantial increase in government revenue and a reduction in operating costs.

Custom duties collected by the Tanzania Revenue Authority (TRA) will also be positively impacted by this development, as they will be based on the number of serviced ships. Projections show that this will result in a substantial increase in revenue collection, with expectations that revenue collected at the port will grow from Sh7.8 trillion in 2021/22 to Sh26 trillion by 2032.

Key Performance Indicators and Local Content:

In addition to these promising changes, the Tanzanian government will implement key performance indicators that DP World must meet to ensure the highest standards of service and efficiency. Moreover, Tanzanians will participate in this contract through relevant provisions such as the local content, ensuring that local talent and businesses are included in the port’s operations and development.

Looking Ahead:

We are optimistic that these agreements will not only improve the logistics landscape at the Dar es Salaam Port but also benefit various sectors such as railways and roads due to the increased cargo traffic. It’s anticipated that the time spent transporting cargo from the Middle East will be significantly reduced from 30 days to 15 days, fostering a more efficient and attractive trade route for businesses and cargo.

Multilines International is committed to staying at the forefront of these developments and leveraging the opportunities that arise from this partnership. We are excited about the potential this holds for our clients and the logistics industry as a whole.