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In this month's Shipping Briefing, we focus on the adoption of the Tanzania Shipping
Agencies Act 2017 (the Act) which will regulate the maritime transport industry in
Mainland Tanzania. The Act was debated and approved on 16 November 2017 by the
Parliament of Tanzania, received Presidential assent on 28 November 2017 and shall
come into operation on such date as the Minister may, by notice in the Gazette,
appoint. We understand that this is likely to be in February 2018.
1. Background
In 2001, the Surface and Marine Transport Regulatory Authority (SUMATRA) was established as a multi-
sectoral regulatory agency, under the Surface and Marine Transport Regulatory Authority Act 2001, to
regulate rail, road and maritime transport services in Tanzania.
For various policy reasons the Act, which has received input from stakeholders, establishes the Tanzania
Shipping Agencies Corporation (TASAC), which will regulate marine transport in Mainland Tanzania,
assuming the rights and responsibilities of SUMATRA.
The information below highlights TASAC's role in regulating marine transport, when TASAC will assume
these responsibilities and how this is likely to affect parties operating in the marine transport sector.
2. Role of TASAC
Sections 6, 10, 11, 12 and 13 of the Act stipulate that TASAC is to act as:
(a) arranging for the arrival or departure of ships and the provision of port services;
(d) arranging the provision of ship stores, supplies and ship repairing;
(f) arranging container stuffing and de-stuffing services, and warehousing and cargo storage services;
(g) canvassing for cargo and market shipping services on behalf of ship owners, operators or
charterers;
(h) attending claims on behalf of ocean carriers for whom a shipping agent acts (Principals);
(i) monitoring tracks and coordinating all activities concerning the movement of full and empty
containers;
(j) collecting ocean freight and other moneys from shippers, consignees or other parties on behalf of
the Principal;
(k) providing ship tallying services and keeping records of all loaded, discharged, stuffed and de-
stuffed cargo items;
(n) any other functions as the Minister responsible for marine transport (the Minister) may direct.
(b) exercise port state control of all foreign ships and flag state control of ships registered in Mainland
Tanzania;
(c) regulate and approve marine services, safety equipment and marine services providers;
(f) regulate and coordinate the protection and preservation of the marine environment;
(g) circulate information and create awareness on matters related to the marine environment, safety,
and security; and
(h) perform any other functions as may specified by any written law or as the Minister may direct.
(a) establish standards and terms and conditions for the supply of regulated goods and services;
(b) regulate rates and charges including freight rates, currency and bunker adjustment factors and
other charges or surcharges in relation to maritime transport services;
(d) monitor the performance and conduct of regulated service providers and shipping lines;
(f) require all ships loading or discharging cargo in Mainland Tanzania ports to submit to TASAC;
(g) register shippers, shipping agents and clearing and forwarding agents; and
(b) is a company incorporated under the Companies Act in which more than 60% of the share capital
is held directly or indirectly by a citizen of Tanzania;
(c) possess the prescribed qualifications for the proper carrying out of the business of shipping
agency; and
Although the Act does not outline any transitional procedure, it is likely that there will be a period of overlap
between SUMATRA and TASAC as information and systems are transferred between the two organisations.
Further information is likely to be provided upon the Act coming into operation.
Furthermore, TASAC's board will be comprised of individuals from the private sector as well as from within
government. This should allow the agency to operate with an effective commercial approach.
Notwithstanding the above, there will be some adjustments to be made during the transitionary phase
from SUMATRA to TASAC and we would recommend that individuals and companies who currently have a
relationship with SUMATRA undertake a detailed assessment of likely impacts together with their
professional advisers in order to establish how they are likely to be affected by the transition.
ed content
2019 2 7 JUN E, 2 0 1 9
UAR Y, 2 0 1 6 0 2 DECEMBER , 2 0 1 5
Authors
Peter Kasanda
Partner
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