Freight costs set to reduce as cargo handling goes electronic

Transportation costs and delays of cargo from Mombasa and other regional ports to Kigali could reduce if the new electronic cargo tracking system is implemented.This follows an agreement that was signed between TradeMark East Africa (TMEA) and Rwanda Revenue Authority (RRA) under which the former committed $1 million towards the implementation of the project.The agreement was signed yesterday by the RAA deputy commissioner general Richard Tusabe and the TMEA CEO Frank Matsaert.TMEA is a funding agency that supports the EAC integration process in all the five partner states.The project will track all trucks and containers transporting goods along the Northern and Central corridors and monitor the movement of transit cargo across the country to ensure that it reaches its intended destination.The Northern Corridor links Rwanda to the Kenyan port of Mombasa, while the Central Corridor links it to the port of Dar es Salaam in Tanzania.“Rwanda, as a landlocked country, faces many challenges of transportation costs from the sea; this is an initiative that would reduce the costs and delays and improve the doing business environment which will inevitably have direct positive impact on Rwandans,” Matsaert told The New Times.Currently, it takes 35 days for cargo to be transported from Mombasa to Kigali but officials say this time may reduce by 50 per cent with the new system.Most barriers that hinder the free movement of goods include roadblocks by police, influx of weigh-bridges, highway robbery as well as customs long procedures while clearing at the borders.Different bottlenecks Gadgets will be fixed on the truck and containers to help monitor movement and real time alerts will be sent in case of any attempt to deviate from the route, prolonged stops in un-gazetted areas or tempering with the seal.According to the official, the system will address the delays caused by repetitive checks and robberies along the corridors and eliminate the physical escort of goods.Tusabe told the TMEA team that the transporters still faced different bottlenecks on the way, citing cash bond from the ports.He observed that over the next two years, they intend to embark on infrastructure development, especially the one stop border post at all borders to facilitate and reduce delays of transporters.

National

Freight costs set to reduce as cargo handling goes electronic