DEVELOPMENTS IN DIFFERENT SECTORS OF THE ECONOMY

264. During 2002, transport and communication sector grew by 6.4 percent at 1992 constant prices, compared to 6.3 percent in 2001. Contribution of the sector to Gross Domestic Product at 1992 constant prices, increased from 5.4 percent in 2001 to 5.5 percent in 2002. This increase is a result of satisfactory implementation of economic recovery policies which emphasize the involvement of the private sector in the provision of services in the sector. The services of communication sub-sector particularly mobile phones have contributed substantially in the performance of the sector followed by road transport, railways and water ways.

TRANSPORT

Road Transport

265. Road transport sub-sector is important in stimulating production activities in the economy, enhancing commercial activities and improvement of social services. Over 70 percent of freight and passengers in the country are transported through roads and waterways and 64 percent of freight for the neighbouring countries is transported through the same means. The completion and commencement of the implementation of the transport policy is an important step in improving transport services. The policy together with its implementation strategy emphasizes the involvement of the private sector in transport services delivery and supervision. Moreover, the transport policy also emphasizes the improvement of transport services both in rural and urban areas, taking into consideration safety of freight and passengers. In general, the policy to a large extent, provides a conducive working environment to operators including emphasis on regulatory measures.

Urban Commuter Services

266. Reforms and policy changes in the country have improved the modalities of managing transportation activities of passengers and freight both in urban and rural areas. For the Dar es Salaam city, the number of commuter buses decreased from 7,230 in 2001 to 5,801 in 2002. The decrease was due to financial constraints experienced by some of the bus owners, who were not in position to replace aging buses. In some regional towns, commuter buses continued to increase. For example, in Arusha township, commuter buses increased from 1,111 in 2001 to 1,118 in 2002. In Mwanza city, buses increased from 600 in 2001 to 660 in 2002. Table No. 16.1 shows the number of commuter buses in urban areas.

NO.	COUNTRY	NUMBER OF BUSES
NO.	COUNTRY	2001	2002
1.	Dodoma	103	150
2.	Arusha	1111	1118
3.	Moshi		220
4.	Lindi		3
5.	Tanga	86	120
6.	Morogoro	190	312
7.	Kibaha	-	-
8.	Dar es Salaam	7,230	5,801
9.	Sumbawanga	8	-
10.	Mtwara	18	35
11.	Songea	63	52
12.	Iringa	31	97
13.	Shinyanga	-	-
14.	Mbeya	83	355
15.	Singida	6
16.	Tabora	16	15
17.	Kigoma	86	66
18.	Bukoba	17	19
19.	Mwanza	600	660
20.	Musoma	29	49
21.	Babati (Manyara)	-	-
	Tanzania Mainland	9,677	9,072

267. Notwithstanding these achievements this sub-sector continued to be faced by the following operational problems: financial constraints experienced by some of the passenger bus owners who are not able to replace aging buses; motor vehicle congestion particularly in Dar es Salaam city due to having low vehicles passenger carrying capacity; commuter buses are owned by many operators who have no knowledge in transport management; motor vehicles congestion contributes to longer passenger waiting and travel time; and increased operational costs.

Railway Transport

Tanzania Railways Corporation (TRC)

268. During 2002, TRC transported 1,445,757 tons of freight cargo compared to 1,350,625 tons in 2001, an increase of 7 percent. Moreover, out of the transported cargo, 153,770 tons were transported by Trans Africa Railways Corporation. In 2002, TRC handled 684,799 passengers compared to 727,851 in 2001, a decline of 5.9 percent. During 2002, TRC earned shs. 58.3 billion compared to shs. 59.6 billion in 2001, decline of 2.1 percent.

Tanzania

and

Zambia

Railways Authority (TAZARA)

269. In 2002, the total freight handled by TAZARA increased to 677,000 tons compared to 558,000 tons in 2001, an increase of 21.3 percent. During 2002, TAZARA transported a total of 1,212,000 passengers compared to 1,262,000 passengers in 2001, a decline of 4.1 percent. In 2002, TAZARA revenues increased to shs. 24.3 billion from shs. 23.7 billion in 2001, an increase of 2.6 percent. Rail accidents are one of the major problems, which have adversely affected the performance of TAZARA. In 2002, 203 train accidents occurred compared to 244 accidents in 2001, a decline of 3.3 percent. Reduction in the number of train accidents was due to various measures taken which included rehabilitation and maintenance of problematic areas which occasionally were causes of accidents. Likewise, locomotive drivers were trained to enable them to acquire good driving techniques.

Air Transport

270. During 2002, the number of flights increased to 123,136 from 115,636 in 2001, an increase of 7 percent. The total number of local and international passengers increased to 1,355,739 in 2002 compared to 1,269,871 in 2001, an increase of 6.8 percent. The improved performance of the air transport sub-sector was due to improved performance of the Tanzania Civil Aviation Authority and Tanzania Airport Authority together with procurement and installation of modern radar, institutionalisation of a programme for the rehabilitation and maintenance of airports infrastructure and various equipment.

Air Tanzania Company Ltd. (ATCL)

271. In December 2002, Air Tanzania Corporation was privatised through a joint venture arrangement with South African Airways and changed the name to “Air Tanzania Company Ltd.”. The government of

Tanzania

retained 51 percent of the shares of the new company while South Africa Airways acquired 49 percent of the shares. During 2002, the company transported 134,370 passengers compared to 177,990 in 2001. Cargo handled by the company in 2002 decreased to 2,232.6 tones from 13,864 tons in 2001, a decline of 83.6 percent. Poor performance of the company was due to spill over effects of the terrorists attack of September 11, 2001 occurred in the

United States of America

which increased aircraft insurance costs, declining number of passengers, company’s old aged aircrafts, inadequate financial capital, and high costs of spare parts and maintenance.

Other Airlines Companies

272. In 2002, a total of 26 private airlines companies continued to render air transport services. During 2002, private sector air transport companies transported 351,364 passengers compared to 285,180 in 2001, an increase of 32.2 percent. Table No.16.2 shows the number of domestic passengers transported.

Aircraft Companies	Number of Passengers
Aircraft Companies	2001	2002
Air Tanzania	177,900	134,370
Precision Air	154,416	174,926
Coastal Travel	34,275	64,762
Regional Air Services	31,891	30,241
Engle Air	9,996	4,799
Air Express	10,332	4,220
Flight Link	624	1,357
Zan Air	13,247	30,044
Other Companies	30,399	31,015

Water Transport

Marine Transport

273. In 2002, Tanzania Harbours Authority (THA) handled 4,524,808 tons of cargo compared to 3,954, 498 tons in 2001, an increase of 14.4 percent. These achievements were attributed to the implementation of the “Port Modernisation Programme” which enabled the rehabilitation of ports and procurement of operational equipment at the Dar es Salaam and Tanga ports. The number of ships handled by the ports decreased from 4,008 ships in 2001 to 3,930 in 2002, a decline of 1.9 percent. Likewise, out of ships handled by the main ports, 993 were foreign and 2,937 were coastal ships.

SINOTASHIP

274. SINOTASHIP is a Shipping Company jointly owned by the Governments of China and

Tanzania

. During 2002, four ships belonging to the company made 41 voyages compared to 35 voyages in 2001. Likewise, the Company transported 497,979 tons of cargo in 2002 compared to 481,060 tons transported in 2001, an increase of 2.4 percent. The company’s revenue however declined from $ 10.7 million in 2001 to $ 9.3 million in 2002, a decline of 13.6 percent.

Tanzania

Central Freight Bureau

274. In 2002, the Tanzania Central Freight Bureau, managed to discharge its responsibilities efficiently. The Bureau increased its revenue to shs. 1.9 billion from to shs. 1.6 billion in 2001, an increase of 16 percent. The achievement of the Bureau was attributed to the increase of cargo transported, major restructuring and rationalisation undertaken for the purpose of increasing operational efficiency to cope with existing competitive environment in the sector.

Ships Operated by Private Companies

275. With regard to coastal ships, a total of 2,937 ships rendered services along the coastal areas in 2002, compared to 3,019 ships in 2001, a decline of 2.7 percent.

Lake Transport

276. Transport in Lakes Tanganyika, Nyasa and Victoria is co-ordinated by the Marine Services Company Limited. The Company owns a total of 16 vessels, out of which, 10 operate in Lake Victoria, 4 in Lake Tanganyika and 2 in Lake Nyasa. The ships are rendering transport services to people living along the lakes and lake ports of neighbouring countries of Kenya and Uganda in Lake Victoria; Burundi, Democratic Republic of Congo and Zambia along Lake Tanganyika, and Malawi ports in Lake Nyasa.

277. During 2002, the Company transported 370,588 passengers compared to 362,575 in 2001, an increase of 2 percent. With regard to cargo transportation, 144,473 tones were transported compared to 163,981 tones transported in 2001, showing a decline of 12 percent.

Lake	Passengers			Cargo (Tons)
Lake	2000	2001	2002	2000	2001	2002
Victoria		297,351	280,751		144,310	157,136
Tanganyika		42,952	39,594		16,115	18,175
Nyasa		22,272	15,483		3,536	3,500
TOTAL	405,418	362,575	337,830	149,232	163,981	180,813

COMMUNICATION SERVICES

Postal Services

278. During 2002, local registered letters posted increased by 1.2 percent from 320,425 in 2001 to 324,214. Registered letters posted abroad also substantially increased by 11.7 percent in 2002, from 28,486 in 2001 to 31,814 registers in 2002. Domestic parcels increased by 12.6 percent from 28,309 in 2001 to 31,862 in 2002. Domestic letters declined by 0.5 percent from 19.1 million letters posted in 2001 to 19 million letters in 2002. Likewise, normal letters sent abroad increased by 5.2 percent from 5.8 million letters in 2001 to 6.1 million in 2002. Money order increased by 18.2 percent from 157,661 orders in 2001 to 186,360 in 2002. Tanzania Postal Corporation renders postal services in collaboration with private sector.

279. Private Postal Companies which have been lincensed to render postal services in the country by 2002 include DHL (T), World Wide Express, TNT World Wide Express, Sky Net World Wide Express, East Africa Courier, Sangare, Ndondondo Mwenda Mbio Ltd., World Jet Travel Services, Ndegaro Agents and Consultants, Akamba Bus Services Ltd., Swift Express (T) Ltd. Scandinavia Express Services Ltd., M/S John Terry Establishments Ltd., M/S Shift Cargo and Malay Freight Forwarders Ltd.

Telecommunication Services

280. During 2002, Tanzania Telecommunication Company Ltd. (TTCL), increased its telephone exchange capacity by 1.75 percent from 239,616 lines in 2001 to 234,419 lines in 2002. However, the number of telephone line connections declined by 3.7 percent from 243, 526 lines in 2001 to 161,590 in 2002. Telex exchange capacity remained static at 2000 lines as was the case in 2001. Telex connections have not increased due to introduction of alternative communication means such as internet, mobile phones and electronic on air (email). In 2002, a total of 2,111 community telephone points were connected in various towns in the country. The fast development in this area contributed to increases in the number of telephone per 1,000 persons. With regard to TTCL’s teledensity, this was raised from 0.31 in 1993 to 0.51 in 2002. When the contribution of all telecommunication companies is put together, e.g. mobile phones the teledensity reaches 1.3 in 2002. Table 16.4 shows the number of companies providing telephone services and their customers for the period 1997 to 2002.

281. Private Companies which were licenced for data communication in 2002 include Wilkans Afsat Tanzania Ltd, Datel Tanzania Ltd., Equant (T) Ltd., Simbanet, Fastcom, Tanzania Telecommunications Company Ltd., Soft Tech, Pan African Communications, SITA Group TANSAT, Satcom Africa Networks, CRDB and Citi Bank. Private Companies which are currently rendering internet Services in the country are: Tanzania Posts corporation (TPC), Internet Africa Computers and Telecomm System Ltd., Africa Online, Star Telecom, COSBI System Ltd., Green Growth R & D Ltd., Cyber Twiga Ltd., Simunet Co. Ltd. J.R. Electronics; Arusha Nobe Maria, Planetel Communications (T) Ltd., Computing Centre of the University of Dar es Salaam and Standard Chartered Bank (T) Ltd.