ABN - Uganda and Tanzania have signed a Memorandum of Understanding (MoU) which will see the former use Dar es Salaam port.
The agreement will allow Uganda to utilise the port in Tanzania’s commercial capital, which is currently undergoing vital expansion work, for the transportation of its cargos.
Uganda is one of East Africa’s landlocked countries, which has previously hampered the country’s transportation and shipping sectors.
However, Uganda’s Minister for Transport Bagiire Aggrey said the use of the port at Dar es Salaam will prove to be a cost-effective option for the nation’s cargo businesses.
"We hope that the cost would go even lower after the completion of the Standard Gauge Railway (SGR) project from Dar es Salaam to Mwanza where there is a waterway connection with Uganda," said Aggrey.
The minister added the closer port at Mombasa in Kenya was also considered, but Dar es Salaam was preferred, having received US$650 million in loans from the World Bank for the development of the port.