In a significant move set to revolutionize container logistics in East Africa, the Tanzania Freight Forwarders Association (TAFFA) has entered into a strategic partnership with Viaservice Limited, a subsidiary of Swiss-based Viatrans SA. The Memorandum of Understanding (MOU) focuses on implementing sustainable solutions to address long-standing challenges in the region's freight and logistics sector.
Breaking Down Container Deposit Barriers
At the heart of this collaboration is the implementation of the Viaservice Container Solution (VCS), an innovative alternative to traditional container cash deposits. This system tackles what industry stakeholders have identified as a major non-tariff barrier at the Dar es Salaam Port and its associated transport corridors. The current container deposit system has been a significant impediment to operational efficiency and competitiveness, increasing business costs for shippers and freight forwarders across all countries served by the port.
The VCS platform, which operates entirely online, offers unprecedented ease of use and flexibility for all stakeholders. More importantly, it has the potential to unlock over $1.5 billion in working capital currently tied up in container deposits. This liberation of capital could provide a substantial boost to business growth and expansion in the region.
Digital Transformation and Capacity Building
The partnership extends beyond just container management. The MOU establishes a joint framework for capacity building in the freight logistics industry, with a focus on digitization and trade finance literacy. This initiative aims to enhance commercial compliance and boost the sector's overall growth and competitiveness.
Industry Leaders' Perspectives
TAFFA President Mr. Urio highlighted the significant impact of VCS since its introduction in Tanzania in 2020. "Container deposit has been one of the perennial problems affecting TAFFA members and shippers," he noted. "The implementation of VCS has provided significant relief while improving cargo logistics efficiency and reducing operational costs, particularly for SMEs in the East African region."
Mr. Morgan Lepinoy, Director of Viaservice and Managing Director and Global Head of Trade Facilitation at Viatrans SA, emphasized how this partnership aligns with their global strategy. "We are committed to leveraging stakeholder partnerships to innovate and implement shipping and transport logistics solutions that align with business needs," he stated. "VCS was specifically designed to address the commercial interests of both shipping lines and container users."
Looking Ahead
The collaboration between Viaservice and TAFFA represents a significant step forward in modernizing East Africa's logistics sector. Through this MOU, both organizations will continue to identify industry challenges and gaps that can be addressed through Viaservice's innovative solutions, ensuring a more efficient and competitive future for regional trade and transport.
This partnership marks a new chapter in East African logistics, promising to deliver more efficient, cost-effective, and sustainable solutions for the entire industry.
Comments