The agreement increases Tanzania Railway Limited’s operations on the Tanga line and offers Tanga Cement PLC a safer, environmentally friendly and more efficient mode of transport.
Tanga, 23 March 2016 –Tanga Cement Public Limited Company (TCPLC) has today announced the signing of a Memorandum of Understanding (MoU) with Tanzania Railways Limited (TRL) that will see the multi-billion Cement Factory use rail for the efficient transportation of cement to its customers in Kigoma and Mwanza regions.
The MoU, signed by Managing Director of Tanga Cement PLC , Reinhardt Swart and TRL’s Acting Managing Director, Masanja Kadogosa, will facilitate phased implementation of transportation of more than 35,000 tonnes of cement per month - a volume that matches a third of the plant's existing monthly production of 105,000 tonnes.
Speaking during a brief signing ceremony and flagging off for the MOU of the first train in Tanga today; officiated by the Minister for Works, Transport and Communication, Prof. Makame Mbarawa, Mr. Swart said the agreement will offer Tanga Cement PLC a logistics solution that will improve efficiency, enhance its competitive advantage and reduce transport costs.
“As a local cement manufacturer, an efficient distribution scheme is crucial for our competitive growth. Rail is globally preferred as a more cost-effective and environmentally friendly mode of transport than trucks for cement, and we look forward to using the rail network to further enhance the efficiency of our distribution system to our customers,” the Managing Director said.
Detailing the MoU, Mr. Kadogosa revealed that the railway authority has permanently allocated 5 locomotives and a shunting locomotive to Tanga Cement PLC to transport a minimal of 20,000 tonnes of cement monthly from Pongwe to Kigoma and 15,000 tonnes from Pongwe to Mwanza.
He revealed that the cement company will pay for the freight services in advance thus ensuring funds are received in good time by TRL.
“We are delighted to provide the local factory with a sustainable transport solution that will positively impact their customers and the Tanzanian community in general,” he said.
Earlier this month, the TRL official was quoted saying in the 2014-15 period, TCPLC dispatched 44,000 tonnes of cement, whereas from July to December 2015 a total of 24,960 tonnes were delivered via the railway line.
The development comes less than a month after The Minister for Works, Transport and communications, Prof. Makame Mbarawa revealed that the government was in final talks with Tanga Cement PLC to use the Usambara railway line for product distribution, in a move intended to minimise damage to the country’s road network.