The time it takes to move cargo between Uganda and Tanzania is set to drop from days to less than 24 hours after the launch of the new $25 million MV Mpungu.
The new vessel, which will ply Lake Victoria, intends to drag down the time it takes to move goods between the two countries to just 18 hours from the three to four days.
According to the Observatory of Economic Complexity (OEC), over the past five years, exports from Uganda to Tanzania have increased at an annualized rate of 22.1 per cent, to $135 million in 2022 from $49.7 million in 2017. In 2022, Tanzania exported goods worth around $264 million to Uganda.
With two scheduled weekly crossings between the two countries, and with future routes under consideration, the vessel will provide businesses with reliable, cost-effective alternatives to road transport, reducing spoilage for fresh produce and opening up regional trade opportunities.
Prime Minister Robinah Nabbanja commended the building of the vessel to the highest international standards of safety and fuel efficiency. MV Mpungu is expected to pave the way for future vessels and routes to Uganda, Tanzania and Kenya, and hence transform regional trade and support decarbonisation of the transport sector, she said.
“When the cost of transport, power, labour and money is low, the cost of production automatically lowers and hence increasing the profit margin. No investor can be attracted to any economy to make losses. Under the East African Marine Transport, the first scheduled roll-on, roll-off flight vessel is set to improve marine transport on Lake Victoria,” she said.
“Uganda being a land-linked country, we rely heavily on road transport for the transportation of our imports and exports. Road transport comes along with a number of costs, such as high maintenance costs, fuel costs, environmental costs, and non-tariff barriers that cause delays and increased costs of transportation and multiple examination of goods, which leads to increased costs of doing business,” Fred Byamukama, the state minister for Transport, said.
He said the cost of goods and services is higher in most of the land-linked countries as compared to coastal countries. Water transport holds tremendous potential for eliminating barriers to trade and socio-economic cooperation in the region and worldwide.
“Developed by InfraCo Africa and Grindrod Limited, the East African Marine Transport (EAMT) project pioneers, MV Mpungu will transform trade between Uganda and other member states that share Lake Victoria. MV Mpungu is a solution to all risks on the roads, accidents, the burning of fuel and wastage of time,” he said.
With a purpose-built shipyard in Entebbe, the building of MV Mpungu involved the employment of up to 160 workers in skilled trades such as steel cutting, welding, engineering, and electrical services and half of the skilled roles were held by Ugandans.
EAMT has also trained 20 new mariners at the Diaspora Maritime Institute, 30 per cent of whom are women. The operations of the vessel directly employ 53 people and will create indirect jobs for those involved in numerous supply chains across the two nations.
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