THE irksome exclusivity clause in the contract between the government and Tanzania International Container Terminal Services (TICTS) which has remained in force since 2000 now faces imminent deletion, the Daily News can report. (Pictured: Dar es Salaam's busy container port).Authoritative sources told the Daily News by phone from Dodoma that agreement to remove the offending clause roundly blamed for the congestion at the container terminal at the Dar es Salaam Port — was reached at a two-day meeting between government ministers and TICTS management which ended in Dodoma yesterday.
The exclusivity clause in effect gave virtual monopoly to TICTS over all container handling at the Dar es Salaam port, but now would be effectively removed after a memorandum of understanding (MoU) is signed by the relevant parties on July 27.
Sources said that the latest move was agreed upon following protracted negotiations that went on close to midnight last Monday. Its removal effectively opens the doors to competition, and gives shipping lines the freedom to choose an operator of their choice. Sources said that the move would also lead to lower tariffs, and that the inland container terminals (ICDs) would be used effectively.
The meeting which was chaired by the Minister for Infrastructure Development, Dr Shukuru Kawambwa, was also attended by the Minister for Industry, Trade and Marketing, Dr Mary Nagu and the Attorney General, Mr Johnson Mwanyika.
Others in the government team were the Deputy Minister of Finance and Economic Affairs, Mr Omar Yusuf Mzee and the Director General of Tanzania Ports Authority (TPA), Mr Ephraim Mgawe. The Chief Executive Officer (CEO) of TICTS, Mr Neville Bissett, also led a team which included the former Minister of Energy and Minerals, Mr Nazir Karamagi.
TICTS was granted a 10-year lease contract with an exclusivity clause in 2000, which was extended for a further 15 years in 2005 meaning the exclusivity clause would have remained in force up to 2025.
Daily News
Post published in: Economy