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Tanzania upgrades airport, but China contractors suffer growing cash flow woes

SWISSPORT Tanzania is building a state-of-the art cargo facility expected to be completed this month at Dar es Salaam's Julius Nyerere International Airport (JNIA), reports the Tanzania Daily News.

While that project seems to be on track other air infrastructure schemes have had financial problems, said the News report.

The Mwanza airport's new US$80 million terminal building is stalled for lack of funds and the Beijing Construction and Engineering Group (BCEG) has not been paid on time and now requests meetings with the Treasury Department.

But the on-track Dar es Salaam facility will have import cargo storage area of 8,000 square metres with dedicated areas hazardous materials and other vulnerable shipments, etc.

Swissport Tanzania CEO Gaudence Temu said $6.3 million had been earmarked for the project, which includes ground support equipment and construction of the new freight terminal.

The completion of the phase one will enable the company to shift import operations to the new facility which includes construction costs, consultancy and fit outs. The project is partly financed internally and banks loans of $3.5 million.

"During the year, cargo volume was lower when compared to the previous year, mainly due to fewer imports and fewer exports of meat, fish and vegetables," said Mr Temu, adding that the company handled 13,098 flights in 2013, up 13 per cent over 2012.

Cargo handled in 2013 was 25,126 tons recording a decrease of 11 per cent compared to 28,354 tons handled in 2012.

The outlook for 2014 is encouraging given the traffic growth, the addition of new destinations and new airlines coming, coupled with the expansion of the domestic market, said the report.

Tanzania Airport Authority (TAA) director general Suleiman Suleiman said plans were afoot to build a bigger, modern terminal III, to cater for six million passengers year when it is finished in 2015.

According to Mr Suleiman, the new terminal III is about 75,000 square metres which is five times bigger than the current terminal II.

"There will be 40 counters as compared to the 17 we currently have. There will be 18 air bridges compared to three we have," he said, adding that the new terminal will be able to dock an A380 Airbus.

Songwe Airport, in final stages of completion though already operational is airport, is 22 kilometres from Mbeya city in the south near the Zambian border is expected to handle Boeing 737s and is the first airport to be constructed by TAA.

To the north, Mwanza airport, on the shores of Lake Victoria, is undergoing a major upgrade and is set to become the nation's next international airport after Dar es Salaam and Kilimanjaro International Airport (KIA) near the Kenyan border.

Mwanza's cargo and passenger traffic make it a third business hub for East Africa, serving a third of 45 million Tanzania population living in Lake Zone regions, said the report.

Upon completion of the Mwanza upgrade, which will extend the runways 500 metres from 3,300 metres, enable it to land a Boeing 747.

But the new $80 million terminal building is stalled for lack of funds and the Beijing Construction and Engineering Group (BCEG) has is not paid in time and requested meetings with the Treasury Department.