A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of
the Degree of Master of Science in Accounting and Finance (MSc-A&F) of Mzumbe
University
This research was about finding out whether the decision to outsource container
handling operations at seaports to private operators does really boost the ports’
efficiency in term of decongestion and speeding up ship handling. Dare es Salaam
Port was studied as a case in point.
The research was a qualitative study, based on questionnaire survey, supported by
interview/discussion, with selected respondents, and was undertaken at the Port of
Dar es Salaam. Primary data were obtained from TPA’s management staff, the
Association of Freight Forwarders, the contracted ICDs and CFSs and a few other
employees of TPA.
Results of the study reveal that the decision was right. Congestion at the port has
been removed. Average ship dwell times have diminished, number of ships calling at
the port and cargo freight through the port have both increased since 2008. Likewise,
the volume of container cargo being transferred to ICDs has also risen in tandem to
the increase in volume of trade via Dar es Salaam Port. In principle, the decision has
been positively welcomed.
In spite of these successes, the decision is challenged by the narrow roads of Dar es
Salaam city, inactivity of the railway system and absence of a cargo tracking system.
The government is recommended to rehabilitate the railway systems (the Central and
TAZARA railways) in order to strengthen performance of the Port of Dar es Salaam.
It is also advised to design and establish a Monitoring and Evaluation system that
will follow up the ICDs and help them not lose the hard-gained successes so far.
Tanzania Ports Authority is challenged to design a cargo tracking system to do away
with current encumbrances arising because of its want.