The Tanzania Ports Authority (TPA) has started preparing Tanga port for the Hoima-Tanga oil pipeline. Design work for tower installation have been conducted and bid invited for the supply of two tug boats that will be used to receive and escort huge vessels.
President Yoweri Museveni and his Tanzania counterpart John Pombe Magufuli last month commissioned the construction of the 1,445km-long East African crude oil pipe line from Hoima district in Uganda to the Indian Ocean Tanzanian Port of Tanga.
The crude oil pipe line, the longest of its kind in the world, will cost $3.5 billion and will be completed by 2020. The pipeline works will be undertaken by Total E&P, CNOOC and Tullow Oil, together with the two governments of Uganda and Tanzania. The pipe line will on completion carry 216,000 barrels of crude oil for export daily.
TPA director general Deusdedit Kakoko revealed the port developed on the sideline of the first Tanzania Oil and Gas Congress.
“We have floated a tender for two tug ships. These are used for receiving and escorting ships arriving and leaving the port. Both domestic and international bidders have been invited. One of the bidders is the Tanzania People’s Defence Force (TPDF) through its assembly unit, Nyumbu,” Kakoko said, adding that TPA has investigated and identified the level at which the port would be deepened in new efforts to enable large ships to dock.
“We have completed design on towers installation. We are considering building a facility at the project area to enhance other TPA activities including ending theft, smuggling out of government trophies and illegal export of metallic sand as discovered recently at the Dar es Salaam Port,” he added.
According to him, TPA is prepared to recruit extra human resource to work in the area. The port will be ready by January 2018 and start importing materials worth $3.5 billion for the project.
Speaking during the commissioning ceremony, President Museveni said that the Tanzanian government made numerous concessions which enabled the two countries to fast track the project.
He said that because of this numerous concessions from the Tanzanian government, the cost of delivering a barrel of oil from Hoima to Tanga will be $12.2 per barrel, making Uganda’s crude oil profitable even at today’s rate of $50 per barrel.
“On behalf of Ugandans, I thank President Maghufuli and our Tanzanian brothers for giving us the following concessions on the pipe line. There will be no pay transit tax, no Value Added Tax, no corporate income tax, gave us 20 years depreciation tax holiday, granted us a free corridor where the pipe line passes and promised to buy shares in the pipe line,” President Museveni said.