Saturday, May 14, 2022

Blow to Tanzania as DRC State-owned shipping line sets base in Mombasa

By Osoro Nyawangah, NAIROBI Kenya

A shipping line from the Democratic Republic of Congo plans to start its operations from Kenya's Mombasa port beginning June this year giving an economic blow to Tanzania's port of Dar es Salaam.

The state-owned shipping line, the Lignes Maritimes Congolaises (LMC) seeks to channel more DR Congo imports and exports cargo through the Port of Mombasa.

A delegation from DR Congo led by the shipping line Director LMC, Banze Nkulu Mulunda, agreed to open an office at the Mombasa port to coordinate imports and exports from their country.

"After a discussion on operational and logistics issues with KPA container terminal principal operations officer, Michael Bokole and his team, we have agreed to start our operations from Mombasa starting next month. This will help in creating more jobs and business opportunities not only for DR Congo but to Kenya,” said Mulunda.

Bokole welcomed the delegation, saying it was a big milestone in the integration of DR Congo into the East Africa community and bolstering trade opportunities.

"The DR Congo recently joined the East Africa Community bolstering trade opportunities among member states who are keen to increase intra-EAC trade and benefit from the common market. Their coming to Mombasa will increase both import and export of goods through the port,” said Bokole.

As the country expects to increase its business after joining the Community on April this year, LMC has adequately addressed the issue of storage, traceability and security of its products.

According to Tanzania Ports Authority (TPA), recorded imports through the Dar es Salaam port in 2017 reached  11,358,292 metric tons with contributions of 785,307 metric tons from DR Congo.

Tanzania Exports to Congo was US$207.23 Million during 2021, according to the United Nations COMTRADE database on international trade.

The admission of the DR Congo into the Community was likely to shift a share of cargo from the central corridor to the northern corridor.

With the entry, focus has been between the Port of Mombasa and that of Dar es Salaam as truckers weigh options on which route to use in ferrying goods to the vast DR Congo state.

The central corridor, which is 1,300km long, begins at the Port of Dar es Salaam serves Tanzania, Zambia, Rwanda, Burundi, Uganda and Eastern DR Congo.

On the other hand, the northern corridor, which is 1,700km long, commences from the Port of Mombasa and serves Kenya, Uganda, Rwanda, Burundi and Eastern DRC.

Dennis Ombok, former chief executive officer of the Kenya Transporters Association, said there are many factors that determine the route that truckers use.

"Things like road tolls, transit period and traffic situations are some of the factors that transporters use to determine the route that they want to use,” said Ombok.

He said incentives at the port also play a key role in determining the effective route for transporters.

DR Congo comes into the bloc with a huge market of 90 million people and the potential to contribute to an expanded market and investment opportunities to boost the EAC common market.

Already, Kinshasa has bilateral and multilateral cooperation arrangements with EAC partner states in various areas, including customs, infrastructure and productive and social sectors.

The DR Congo is a member of various regional organisations including the Southern African Development Community, the Common Market for Eastern and Southern African, the Economic Community of Central African States, the Economic Community of the Great Lakes Countries and International Conference on the Great Lakes Region.

At the continental level, it is a member of the African Union, while at the global level it is a member of the United Nations and has ratified most of its affiliated instruments. - Africa

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