- Email: [email protected]
LDCs urged to take more active part in shipping
Conference report LDCs urged to take more active part in shipping National 1984
Seminar
on Shipping,
Dar es Salaam,
A Tanzanian National Seminar on Shipping has urged developing nations to take a more active part in the shipping business and in maritime activities in general. The seminar was held on 27-28 September 1984 at the Kilimanjaro Hotel, Dar es Salaam, Tanzania. It was attended by over 50 participants, who came from government ministries, public corporations, companies, Liner Conferences, University of Dar es Salaam, National Institute of Transport and other institutions involved in the maritime business. The date of the seminar was chosen to coincide with the marking of the 3rd World Maritime Day declared by the International Maritime Organization (IMO). It was the first time in the 23 years of independence that a seminar on shipping was held in Tanzania, despite the country’s long coast (840 km) and history of maritime activities. Thus, there was a lot of enthusiasm on the part of those involved. The idea of a national seminar was the brainchild of three personalities in shipping business, Mr Meghji (Director of Shipping in the Ministry of Communication and Works, who was also behind the establishment of Tanzania’s Central Freight Bureau), Dr Mahalu (Senior Lecturer in the Faculty of Law, University of Dar es Salaam) and Mr Mushi (National Shipping Agencies Company, NASACO) in Dar es Salaam. The three gentlemen worked tirelessly to make the seminar a great success. The seminar was opened by the Hon G. Itatiro, MP Minister of State, Ministry of Communications and Works. Each of the seven papers presented touched on a specific aspect of maritime affairs in the country and the world at large.
166
Tanzania, 27-28
September
The first paper, presented by Dr Costa Mahalu, was entitled ‘Economic aspects of some maritime rights and duties of states’. The author made two main points. Firstly, that there are rights in international law which states should take up. Some of these rights are now well codified in the UN Law of the Sea Convention. However, he noted that because of lack of technology and finance, most developing states have not been able to exercise and assume their rights the way the developed states have done. In his discussion on the Law of the Sea Convention, he noted with disappointment that the Third UN Conference on the Law of the Sea did not concretely address the issue of shipping; this was because the centre of attraction was seabed mining and also because shipping was being handled by another organ of the United Nations - UNCTAD.
Joint ventures The second important point made in the paper was on joint venture. The author pointed out that reality has taught developing countries that it is next to impossible to go alone into the shipping business - an area requiring heavy investment and advanced technology. Such requirements are beyond the reach of these states at the moment. He therefore suggested that developing countries should enter into joint-venture arrangements with entities from the developed world to provide both finance and technology. This suggestion led to a lively debate. Some participants supported the idea, while others opposed it. Yet others suggested that it is worth examining the performance of joint-venture arrangements in other parts of the
economy before making a decision. There were others who thought that South-South cooperation was the way out of the Third World problems. In a rather technical paper entitled ‘Contracts of affreightment: the case of charter parties in developing countries’, Mr S.I. Mushi set out to argue a case for having trained technocrats to deal with charter party contracts. After a thorough analysis of various forms of charter parties, the author indicated the problems arising out of interpretation of these contracts. Because of the complicated language contained in the standard forms used, he urged for training of those involved so that the developing countries can get a fair deal. The author made general recommendations as a remedy to the current situation in which developing countries are losers; they included training, consultation, seminars by individual organizations, establishment of permanent fora for exchange of ideas, and deliberate government action to support and promote maritime trade. The Tanzania Harbours Authority produced a paper on ‘Transit facilities in Tanzania’, which was presented by Mr Wilbert Macha of the Directorate of Operations. It centred on the performance of Dar es Salaam as a transit port for goods from or to the neighbouring countries (Malawi, Zambia, Zaire, Rwanda, Burundi and Uganda). This paper revealed that the Belbase Agreement of 1921 between the British and the Belgians was still in force albeit with a few changes. Originally, under that agreement, Britain, the then colonial power in Tanganyika (now Tanzania) leased to the Belgian government facilities at the ports of Dar es Salaam and Kigoma at the rate of one franc per annum.’ The paper indicated that today a Belgian company Agence Maritime Internationale (AMI) administers the Belbase (Belgian Base) at the Dar es Salaam port and administers and operates the port of Kigoma on behalf of the Tanzanian government. Aspects of the financial arrangement of the current lease were omitted. Elsewhere the paper noted the problems facing the port. For example, the volume of the traffic entering
MARINE
POLICY April 1985
Conference
the port did not match with the volume leaving. It attributed this situation to the heavy bureaucratic procedures involved in clearing goods. Transit traffic had had positive impact on the port in that the port has expanded rapidly. To cover up the costs of the expansion, the Tanzania Harbours Authority attempted to attract transit traffic by offering terms which were in line with the resolutions of the international community on the rights and freedoms of landlocked nations. A sad picture of the national shipping scene was painted by a paper prepared by the National Transport Corporation - ‘Development of coastal shipping in Tanzania’ - and read by the corporation’s Director of Transport Operations Mr J. E. J. Mosi.
Performance The paper focused on the performance of the Tanzania Coastal Shipping Line (TACOSHILI), one of the six companies under the National Transport Corporation. This company was established in 1971 to serve the southern regions of the country which are inaccessible by other means of transport during most of the year. The paper pointed out that a feasibility study done by the Norwegian Institute of Transport Economy into the establishment of this company indicated that its operations would be at a loss of l-2 million Tanzanian shillings (17 Tanzanian shillings = 1 $ US. That notwithstanding the government accepted the negative report and approved the establishment of the company and requested NORAD to assist in its floating. Commenting on this aspect many participants wondered why the government, knowing the company’s history, was still insisting that it should operate at a profit. The paper emphasized the major problems and bottlenecks facing the company. These were identified as lack of technical and marketing data, natural constraints, inadequate terminal facilities, poor navigational aids, inadequate repair and maintenance facilities, weak capital structure, unrealistic shipping rates and fares fixed by the state, absence of
MARINE
POLICY April 1985
fleet replacement policy, lack of proper coordination with major customers, and shortage of skilled manpower. After replying to the questions raised by the paper, the General Manager of TACOSHILI, Mr Karani, called upon the government and the Tanzania Harbours Authority to examine and resolve the problems identified in the paper. He also urged the government to a clear-cut policy on coastal shipping. On the second day of the seminar three papers were presented and discussed. These were ‘Towards a Tanzanian shipping policy’ by Mr N. L. Buhatwa, the General Manager of the Chinese Tanzania Joint Shipping Company (SINOTASHIP), ‘Management of a shipping line in a developing country’ by Mr Fabian N. Ninalwo, a Senior Instructor at the National Institute of Transport and a veteran in the shipping business, and ‘Terms of shipment and the incidence of freight rates in developing countries’ by Mr S. I. Mushi. The central theme running through the three papers was the power of the developed countries in the shipping business and especially the conference lines. The papers noted that conference lines were so powerful that it was practically impossible for an infant line in a developing country like Tanzania to become established. It was indicated that conference lines were responsible for arbitrary fixing of the high freight rates which milk the little foreign exchange that the developing countries have. The papers also noted that, in order to maintain their monopoly in this business, conference lines would vigorously fight any poten-
report
tial competitor by all means at their disposal including rate wars, offering of rebates, etc. The papers thus recommended establishment of shipping policies in developing countries and cooperation among the Third World countries in regional organizations like SADCC, ECOWAS, etc, with the aim of enhancing the bargaining power of a region or members of a conference trading range. The Central Bank had promised to present a paper on ‘Modes of financing a national fleet in a developing country’, but this did not materialize; instead the bank hosted a grand reception for the seminar participants. The seminar ended with the participants making resolutions aimed at revamping maritime business in the country and urging the government to take a more active role in maritime activities which contributed considerably to the economy of the nation. Among the resolutions made was the establishment of the Maritime Association of Tanzania. This would serve as a permanent forum for all those involved and interested in maritime affairs in the country. The idea has been accepted by the government and the association will be inaugurated once its promoters complete the legal formalities pertaining to the floating of such associations. C. M. Peter and P. J. Kabudi Faculty of Law University of Dar es Salaam Tanzania ‘See E.E. Seaton and ST. Maliti, Treaty Practice in Tanzania, Oxford University Press, Dar es Salaam, 1973.
Conferences The editors welcome information on forthcoming meetings listing in the Calendar. Short reports of relevant conferences seminars are also of interest.
for and
Viewpoints/Reports Short articles analysing current issues affecting marine policy are encouraged. Reports of research initiatives are also welcomed. Correspondence and conference details should be sent to The Editor, Marine Policy, PO Box 63, Butterworth Scientific, Westbury House, Bury Street, Guildford GU2 5BH, UK.
167
Seminar
on Shipping,
Dar es Salaam,
A Tanzanian National Seminar on Shipping has urged developing nations to take a more active part in the shipping business and in maritime activities in general. The seminar was held on 27-28 September 1984 at the Kilimanjaro Hotel, Dar es Salaam, Tanzania. It was attended by over 50 participants, who came from government ministries, public corporations, companies, Liner Conferences, University of Dar es Salaam, National Institute of Transport and other institutions involved in the maritime business. The date of the seminar was chosen to coincide with the marking of the 3rd World Maritime Day declared by the International Maritime Organization (IMO). It was the first time in the 23 years of independence that a seminar on shipping was held in Tanzania, despite the country’s long coast (840 km) and history of maritime activities. Thus, there was a lot of enthusiasm on the part of those involved. The idea of a national seminar was the brainchild of three personalities in shipping business, Mr Meghji (Director of Shipping in the Ministry of Communication and Works, who was also behind the establishment of Tanzania’s Central Freight Bureau), Dr Mahalu (Senior Lecturer in the Faculty of Law, University of Dar es Salaam) and Mr Mushi (National Shipping Agencies Company, NASACO) in Dar es Salaam. The three gentlemen worked tirelessly to make the seminar a great success. The seminar was opened by the Hon G. Itatiro, MP Minister of State, Ministry of Communications and Works. Each of the seven papers presented touched on a specific aspect of maritime affairs in the country and the world at large.
166
Tanzania, 27-28
September
The first paper, presented by Dr Costa Mahalu, was entitled ‘Economic aspects of some maritime rights and duties of states’. The author made two main points. Firstly, that there are rights in international law which states should take up. Some of these rights are now well codified in the UN Law of the Sea Convention. However, he noted that because of lack of technology and finance, most developing states have not been able to exercise and assume their rights the way the developed states have done. In his discussion on the Law of the Sea Convention, he noted with disappointment that the Third UN Conference on the Law of the Sea did not concretely address the issue of shipping; this was because the centre of attraction was seabed mining and also because shipping was being handled by another organ of the United Nations - UNCTAD.
Joint ventures The second important point made in the paper was on joint venture. The author pointed out that reality has taught developing countries that it is next to impossible to go alone into the shipping business - an area requiring heavy investment and advanced technology. Such requirements are beyond the reach of these states at the moment. He therefore suggested that developing countries should enter into joint-venture arrangements with entities from the developed world to provide both finance and technology. This suggestion led to a lively debate. Some participants supported the idea, while others opposed it. Yet others suggested that it is worth examining the performance of joint-venture arrangements in other parts of the
economy before making a decision. There were others who thought that South-South cooperation was the way out of the Third World problems. In a rather technical paper entitled ‘Contracts of affreightment: the case of charter parties in developing countries’, Mr S.I. Mushi set out to argue a case for having trained technocrats to deal with charter party contracts. After a thorough analysis of various forms of charter parties, the author indicated the problems arising out of interpretation of these contracts. Because of the complicated language contained in the standard forms used, he urged for training of those involved so that the developing countries can get a fair deal. The author made general recommendations as a remedy to the current situation in which developing countries are losers; they included training, consultation, seminars by individual organizations, establishment of permanent fora for exchange of ideas, and deliberate government action to support and promote maritime trade. The Tanzania Harbours Authority produced a paper on ‘Transit facilities in Tanzania’, which was presented by Mr Wilbert Macha of the Directorate of Operations. It centred on the performance of Dar es Salaam as a transit port for goods from or to the neighbouring countries (Malawi, Zambia, Zaire, Rwanda, Burundi and Uganda). This paper revealed that the Belbase Agreement of 1921 between the British and the Belgians was still in force albeit with a few changes. Originally, under that agreement, Britain, the then colonial power in Tanganyika (now Tanzania) leased to the Belgian government facilities at the ports of Dar es Salaam and Kigoma at the rate of one franc per annum.’ The paper indicated that today a Belgian company Agence Maritime Internationale (AMI) administers the Belbase (Belgian Base) at the Dar es Salaam port and administers and operates the port of Kigoma on behalf of the Tanzanian government. Aspects of the financial arrangement of the current lease were omitted. Elsewhere the paper noted the problems facing the port. For example, the volume of the traffic entering
MARINE
POLICY April 1985
Conference
the port did not match with the volume leaving. It attributed this situation to the heavy bureaucratic procedures involved in clearing goods. Transit traffic had had positive impact on the port in that the port has expanded rapidly. To cover up the costs of the expansion, the Tanzania Harbours Authority attempted to attract transit traffic by offering terms which were in line with the resolutions of the international community on the rights and freedoms of landlocked nations. A sad picture of the national shipping scene was painted by a paper prepared by the National Transport Corporation - ‘Development of coastal shipping in Tanzania’ - and read by the corporation’s Director of Transport Operations Mr J. E. J. Mosi.
Performance The paper focused on the performance of the Tanzania Coastal Shipping Line (TACOSHILI), one of the six companies under the National Transport Corporation. This company was established in 1971 to serve the southern regions of the country which are inaccessible by other means of transport during most of the year. The paper pointed out that a feasibility study done by the Norwegian Institute of Transport Economy into the establishment of this company indicated that its operations would be at a loss of l-2 million Tanzanian shillings (17 Tanzanian shillings = 1 $ US. That notwithstanding the government accepted the negative report and approved the establishment of the company and requested NORAD to assist in its floating. Commenting on this aspect many participants wondered why the government, knowing the company’s history, was still insisting that it should operate at a profit. The paper emphasized the major problems and bottlenecks facing the company. These were identified as lack of technical and marketing data, natural constraints, inadequate terminal facilities, poor navigational aids, inadequate repair and maintenance facilities, weak capital structure, unrealistic shipping rates and fares fixed by the state, absence of
MARINE
POLICY April 1985
fleet replacement policy, lack of proper coordination with major customers, and shortage of skilled manpower. After replying to the questions raised by the paper, the General Manager of TACOSHILI, Mr Karani, called upon the government and the Tanzania Harbours Authority to examine and resolve the problems identified in the paper. He also urged the government to a clear-cut policy on coastal shipping. On the second day of the seminar three papers were presented and discussed. These were ‘Towards a Tanzanian shipping policy’ by Mr N. L. Buhatwa, the General Manager of the Chinese Tanzania Joint Shipping Company (SINOTASHIP), ‘Management of a shipping line in a developing country’ by Mr Fabian N. Ninalwo, a Senior Instructor at the National Institute of Transport and a veteran in the shipping business, and ‘Terms of shipment and the incidence of freight rates in developing countries’ by Mr S. I. Mushi. The central theme running through the three papers was the power of the developed countries in the shipping business and especially the conference lines. The papers noted that conference lines were so powerful that it was practically impossible for an infant line in a developing country like Tanzania to become established. It was indicated that conference lines were responsible for arbitrary fixing of the high freight rates which milk the little foreign exchange that the developing countries have. The papers also noted that, in order to maintain their monopoly in this business, conference lines would vigorously fight any poten-
report
tial competitor by all means at their disposal including rate wars, offering of rebates, etc. The papers thus recommended establishment of shipping policies in developing countries and cooperation among the Third World countries in regional organizations like SADCC, ECOWAS, etc, with the aim of enhancing the bargaining power of a region or members of a conference trading range. The Central Bank had promised to present a paper on ‘Modes of financing a national fleet in a developing country’, but this did not materialize; instead the bank hosted a grand reception for the seminar participants. The seminar ended with the participants making resolutions aimed at revamping maritime business in the country and urging the government to take a more active role in maritime activities which contributed considerably to the economy of the nation. Among the resolutions made was the establishment of the Maritime Association of Tanzania. This would serve as a permanent forum for all those involved and interested in maritime affairs in the country. The idea has been accepted by the government and the association will be inaugurated once its promoters complete the legal formalities pertaining to the floating of such associations. C. M. Peter and P. J. Kabudi Faculty of Law University of Dar es Salaam Tanzania ‘See E.E. Seaton and ST. Maliti, Treaty Practice in Tanzania, Oxford University Press, Dar es Salaam, 1973.
Conferences The editors welcome information on forthcoming meetings listing in the Calendar. Short reports of relevant conferences seminars are also of interest.
for and
Viewpoints/Reports Short articles analysing current issues affecting marine policy are encouraged. Reports of research initiatives are also welcomed. Correspondence and conference details should be sent to The Editor, Marine Policy, PO Box 63, Butterworth Scientific, Westbury House, Bury Street, Guildford GU2 5BH, UK.
167