Tanzania has recently made the decision to gradually eliminate the presence of private rail operators within the country. This move signals a significant shift in the nation's transportation sector. As part of this transition, the government aims to take full control of the rail network and its operations.
The government is developing a plan that could allow companies from the private sector to transport goods and people on Tanzania's railways.
Application Process
Under the Railways (Open Access) Regulations, 2023, those interested in becoming independent railway operators will, however, have to fulfil several requirements, including submitting an official application and effecting the charges accordingly.
Upon submitting an application and being granted a licence by a government official – known in the regulations as Infrastructure Manager – the operator will be given access and transit rights for the purpose of operating on any type of railway.
Operators will have to pay the application fee and the licence fee.
Presenting the Railways (Open Access) Regulations, 2023, the head of legal services with the Land Transport Regulatory Authority (Latra), Ms Celina Mloga, said applicants will pay licence and application fees of $2,000 and $100, respectively.
Feedback from the Private Sector
She made the remarks during a meeting organised by the Ministry of Transport in collaboration with Latra, which focused on receiving feedback from the private sector on the Railways (Open Access) Regulations, 2023.
“The operators will also pay a certain amount of infrastructure charges,” Ms Mloga said, adding that most of the amount will be used for railway maintenance.
Transport deputy permanent secretary Ally Possi said the meeting has come at the right time, saying it was the first time that players in the transport sector were getting an opportunity to deliberate on the Railways (Open Access) Regulations, 2023, since they were formulated.
He said it was important to involve the private sector in the operations of the railway line, considering that even the current metre standard gauge (MSG) was operating below its capacity.
“We all know that Tanzania Railways Corporation (TRC), especially Railway Metre Gauge (MGR) infrastructure, was designed to carry cargo of five million tonnes per year but the highest cargo transported until now is 1.6 million tonnes. So we have a deficit of almost 3.4 million tonnes,” Dr Possi said.
With the construction of the Standard Gauge Railway (SGR) well on track, the involvement of the private sector in its running need not be overemphasised, he added.
Benefits of Private Sector Involvement
Dr Possi said more investment from the private sector would be required for the government to realise the benefits of money injected into the project.
“We are going to put the private sector at the Dar es Salaam Port and SGR so that the transportation of cargo can overflow. In the previous years, the government managed the operations. As we engage the private sector, we must acknowledge the fact that our infrastructure is not being managed or utilised effectively, and that is why the government decided to change the law to attract a diversity of operators,” he said.
Dr Possi urged the private sector to be free when discussing the Railways (Open Access) Regulations 2023 because the regulations were meant to increase efficiency in the transport of cargo and passengers and thus grow the economy.
The head of supply chain at the World Food Programme (WFP), Mr Mahamud Mabuyu, said it was good that the government decided to involve the private sector in the formulation of the regulations before they become operational.
Recommendations
“It is also our view that as the government opens doors to members of the private sector to operate in the railway sector, it the government should look for an independent organisation that will manage operations instead of relying solely on the TRC,” he said.
Mr Mabuyu said it was also important for the government to conduct an evaluation of the MGR to see if it the railway still had the same capacity demand of five million tonnes or not.
“The government sets standards for operators on the open market. It must categorise routes and types of cargo to carry for operators to reduce confusion and misunderstanding.”
-Source(thecitizen)Tanzania
