NTU wins EU funded project Assessment of Tanzania's Port in the Regional Economic Environment

The overall study objective is to critically examine the key challenges facing Tanzania’s ports and logistics infrastructure, and the collective implications of these for trade in the East African regions served by those ports. The specific objective is to propose recommendations to inform the policy debate on strategies to improve connectivity of African countries to regional and global markets with the aim to boost trade and, in turn, contribute to the economic development process. The study will thereby assess the geographical situation of Tanzania’s ports in the wider economic environment and the role they can play in the economic development of an area or region. Specifically, the assessment will be imply a combination of original analysis using available data, a review of existing literature, and consultations with relevant policy makers and other relevant stakeholders; as follows: 1. Regarding the contextualization of Tanzania’s Ports and Logistics Challenges in a Changing World, we will present an overview of the various issues and challenges at the heart of the ports/logistics nexus and its impact on trade. In doing so, the consultant will also briefly present some normative information on what an efficient ports and logistics business environment should look like. 2. Concerning the evolution of Tanzania’s Ports and Logistics in a Competitive World, we will provide an overview of the evolution of Tanzania’s ports and logistics sector over time and it will be assessed the extent to which the changes taking place in the port sector present difficult challenges to Tanzania’s port administrators, terminal operators, and other port service providers. Likewise, the consultant will assess how the changes also present opportunities for new ways of doing business and open the door to entry of new players throughout the range of port and related logistics activities. 3. Regarding the Alternative Ports and Logistics Management Structures/Models, the main focus will be the assessment of various aspects of public versus private investments in infrastructure, including which components of infrastructure (if any) are paid for by the government or by the port authority, which investments should be made by the terminal operator, and how the Tanzanian government can harness private funding for port-related investments. This chapter will also analyse the potential role global terminal operators—both shipping lines and stevedoring companies—could play in Tanzania’s maritime sector while also assessing the potential impact on port management and finance. 4. Regarding the Financial Implications of Ports and Logistics Reforms, we will assess the key risks confronting the TPA with the goal of identifying principles for the equitable sharing of each risk between the public and private sector parties currently involved in the country’s maritime, ports and logistics arrangements. In so doing, the consultant will seek to assess the impact of current Government regulation on the cost and revenue risks in Tanzania’s ports sector, and the ways in which such regulation conditions the principles for sharing these risks. 5. Concerning the Regulatory Issues, the purpose will be to evaluate current regulatory issues, options, and their consequences, given that most decisions about Tanzania’s ports and logistics sector reform strategy, industry structure, and regulatory frameworks are intimately intertwined. 6. Finally, based on findings during this project, we will propose policy recommendations: suggestions made on the basis of our experience and knowledge for policy choices deemed to be politically and technically feasible as well as financially viable for undertaking additional reform measures for the ports and logistics sector in a practical and effective way to build on what has been achieved thus far.