This archive report was first published on 6 August 2020.
As the Central Corridor gains momentum, the Dar es Salaam port is poised to attract lucrative business away from the Mombasa port, thanks to its cheaper cargo rates.
According to the Central Corridor Transport Observatory 2019 report, the average cost of transporting goods from Dar es Salaam to Bujumbura is $1.80 per kilometre per container, compared to $3.10 per kilometre per container from Mombasa.
Similarly, importers from Uganda pay $1.80 per km per container to transport goods from Dar es Salaam, while those from Goma pay $2.60 from Dar es Salaam and $3 from Mombasa.
“The difference is huge for cargo destined to Bujumbura, with importers saving about $1.18 per km per container when importing through Dar es Salaam port compared to importing through the Mombasa port,” said the CCTO report.
Notably, transit cargo from Dar es Salaam to Uganda, Rwanda, and Burundi increased to 37 percent in 2019, up from 22 percent in 2018.
The turnaround of the Central Corridor has been attributed to the revival of the Central line metre gauge railway, which has prompted Kenya Railways to rehabilitate the old meter-gauge railway from Nakuru to Kisumu at a cost of Ksh3.8 billion ($35 million).
The Central Corridor forms part of the backbone of the regional transportation system in East and Eastern Central Africa, serving five countries with a population of over 120 million people.
With the Dar es Salaam port handling about 95 percent of Tanzania’s international trade, the Central Corridor is poised to play a significant role in the region’s economic growth.
