The ManicaPost
Ngoni Dapira Post Correspondent
PROMOTION of regional trade is one of the key objectives of the Southern African Development Community which has over the years seen the creation of Free Trade Zones between nations.However, it also has broader benefits that support the process of regional integration.
Nations that expand trade with others through liberalization of trade policies increase economic growth and improve the quality of life of their people.
Zimbabwe is expected to assume the one-year tenure as SADC chair in August when it hosts the regional bloc’s Heads of State Summit.
Running under the theme: “SADC Strategy for Economic Transformation: Leveraging the Regions Diverse Resources for Sustainable Economic and Social Development,” Zimbabwe has to map the way forward for SADC during its tenure and promote economic and social development.
With only three coastal countries in Southern Africa, Namibia, South Africa and Mozambique, pressure has over the years mounted on them acting as the destination point of most goods for landlocked countries in the region.
However, most countries have over the years failed to make use of dry ports, and Zimbabwe is one such country with its Mutare Dry Port being underutilized.
A dry port is an inland port directly connected by road or rail to a seaport and operates as a centre for the transshipment of sea cargo to inland destinations.
In addition to their role in cargo transshipment, dry ports may also include facilities for storage and consolidation of goods and customs clearance services.
The location of these facilities at a dry port relieves competition for storage and customs space at the seaport itself and eases trade for landlocked countries.
Established in Mutare in 2010, Mutare Dry Port was born out of a partnership between Cornelder Mozambique (51 percent) and Zimbabwe’s Glenburn Investment (41 percent).
Business analyst, Mr Charles Tawazadza, said a lot of idle capacity lay in the dry port concept which had the potential to not only ease trade for landlocked countries, but also create employment and income generation from exports and storage facilities for inland countries that are en-route like Zimbabwe.
The former director of Mutare Dry Port, Mr Tawazadza, said if the Mutare Dry Port had been fully exploited it would have been the most convenient port for Zambia, Botswana, Eastern Democratic Republic of Congo and Malawi, which often use the Zimbabwe road route.
He added that over $600 000 per month could have been generated from the dry port concept if the concept was fully supported, while in terms of employment creation, the Mutare Dry Port could have been employing over 600 employees.
Mr Tawazadza said although the Mutare Dry Port was still open, it is not fully operational as it lacks the full backing to conceptualise the vision and ease regional trade.
“In Africa, the three main dry ports are Manzini Dry Port in Swaziland, Dodoma Dry Port in Tanzania and the Johannesburg Deep Dry Port in South Africa.
“These are the main competitors, but Zimbabwe could still have maintained a monopoly on markets from Zambia, Botswana, Eastern Democratic Republic of Congo and Malawi, if the dry port concept had been fully supported,” said Mr Tawazadza.
He said at the dry port a lot of revenue can be generated from trans-shipment services, containerizing and de-containerising as well as bonded and general warehousing.
“I remember at one point seeing a quotation at one dry port for $3 million for the containerization of chrome. This is revenue being channeled to South Africa, but could have been circulating here in Zimbabwe.
“We have several raw materials produced locally like tobacco and cotton lint being exported regionally that could have been exported through the Mutare Dry Port generating income locally, but instead South Africa benefits, on top of having a sea port,” said Mr Tawazadza.
Mr Tawazadza added that the National Railways of Zimbabwe could have been generating a lot of revenue had the concept found buy-in locally.
“NRZ could have been generating a lot of revenue from the dry port concept had it got buy-in. Rail is the cheapest mode of transport and could have been the most viable option for farmers and miners.
“Goods can be ferried by rail from as far as Beira and transshipped by road at Mutare Dry Port to wherever, regionally cutting expenses,” he said.
With the rise in car imports and agents such as B-Forward, Mutare Dry Port could have been booming with business instead of people going to the sea port in Maputo, Mozambique or Dar Es Salaam, Tanzania.
As Government seeks out new avenues to unlock funding and create employment under Zim-Asset, the Mutare Dry Port concept is one part of a value chain that has been ignored, but can generate a lot of revenue and contribute immensely to the fiscus for Zimbabwe and ease trade for several landlocked countries that use the Zimbabwe road or train route.
