Tanzania: Tanga Cement seal rail distribution deal

Tanzania: Tanga Cement seal rail distribution deal
Published: 24 March 2016

Tagged Under: Tanzania Tanga Cement 

Tanga Cement Plc and Tanzania Railways Ltd (TRL) signed a Memorandum of Understanding (MoU) yesterday to secure cement delivery by rail to Tanga customers in Kigoma and Mwanza regions of Tanzania.

The contract will see TRL transport more than 35,000tpm of cement along its lines, which is equivalent to one third of Tanga Cement’s monthly production, according The Citizen paper.

On the day of the first train delivery Mr Reinhardt Swart, managing director of Tanga Cement, said the agreement offered Tanga Cement plc much needed logistic solutions to improve efficiency, enhance its competitive advantage and reduce its transport costs.

“As a local cement manufacturer, inefficient 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,” Mr Swart said.

Mr Kadogosa, TRL’s acting managing director, will shunt 20,000t of cement each month to Pongee and Kigoma, while 15,000t of cement will be sent from Pongee to Mwanza.