Phone: +252611100850 | Mogadishu, Somalia

Mogadishu Port users pay around $1,000 per container beside the statutory taxes!

Overview of Mogadishu port. Photo: @PortMogadishu/twitter

Over this period, between 1991 and 2006, the port in Mogadishu remained closed; the city had been enveloped in anarchy, insecurity, and civil war. It was 2006 when the Union of Islamic Courts reopened the port. Seven years after the reopening, a Turkish firm, Al-Bayrak, entered an agreement with the Federal Government of Somalia to modernise and manage the port for a period of 20 years. The recent modernization of Mogadishu port and its expanded operations has made it the country’s largest source of internal revenue. Conceivably, the country’s ability to revitalise and grow its economy is largely dependent on the port; its effectiveness and efficiency to operate at the highest levels is a significant factor. There are high prospects both locally and regionally. The future looks bright. That notwithstanding, numerous challenges, gaps and misgivings have been cited to be bedevilling the port and its users. Key among them, businesspeople have complained of higher trade costs and redundant bureaucracy that have frustrated their operations within and beyond the port.

According to a survey conducted by GSM Business Solutions late last year on the Mogadishu port users, they pay approximately between $959.91 and $1,209.91 per container beside the statutory taxes. The following is a breakdown of these costs:

Item

Collecting Authority  

Description 

Amount

Receipt

Container Size

Delivery order

Shipping lines

Per Container

$84.00

Yes

20/40 FT

Destination Terminal handling charges

Shipping lines

Per Container

$400.00

Yes

20 FT

Destination Terminal handling charges

Shipping lines

Per Container

$600.00

Yes

40 FT

Terminal Handling Charges

MAP-Albayrak

Per Container

$182.91

Yes

20/40 FT

 Bribe

Ministry of Finance

Per Bill of Landing

$20.00

No

20/40 FT

Unsealing Containers

Albayrak+

NISA+Police

Per Container

$20.00

No

20/40FT

Bribe

Police

Container

$3.00

No

20/40 FT

Truck 

Trucking company

Container

$250.00

Yes

20 FT

Truck

Trucking company

Container

$500.00

Yes

40 FT

It is no secret that the port is a major source of revenue for both Mogadishu municipality and the federal government. There is need for more efforts to explore and systemically address the above obstacles and hindrances that threaten the smooth operations at the port. This is the country’s top income earner and must be treated as so. It can only get better . . . only if all the stakeholders play their part.

GSM Business Solutions

info@gsmbusinessssolutionss.net 

MOGADISHU PORT – port users pay around $1,000 per container beside the statutory taxes!

Overview of Mogadishu port. Photo: @PortMogadishu/twitter

Over this period, between 1991 and 2006, the port in Mogadishu remained closed; the city had been enveloped in anarchy, insecurity, and civil war. It was 2006 when the Union of Islamic Courts reopened the port. Seven years after the reopening, a Turkish firm, Al-Bayrak, entered an agreement with the Federal Government of Somalia to modernise and manage the port for a period of 20 years. The recent modernization of Mogadishu port and its expanded operations has made it the country’s largest source of internal revenue. Conceivably, the country’s ability to revitalise and grow its economy is largely dependent on the port; its effectiveness and efficiency to operate at the highest levels is a significant factor. There are high prospects both locally and regionally. The future looks bright. That notwithstanding, numerous challenges, gaps and misgivings have been cited to be bedevilling the port and its users. Key among them, businesspeople have complained of higher trade costs and redundant bureaucracy that have frustrated their operations within and beyond the port.

According to a survey conducted by GSM Business Solutions late last year on the Mogadishu port users, they pay approximately between $959.91 and $1,209.91 per container beside the statutory taxes. The following is a breakdown of these costs:

Item

Collecting Authority

Description

Amount

Receipt

Container Size

Delivery order

Shipping lines

Per Container

$      84.00

Yes

20/40 FT

Destination Terminal handling charges

Shipping lines

Per Container

$    400.00

Yes

20 FT

Destination Terminal handling charges

Shipping lines

Per Container

$    600.00

Yes

40 FT

Terminal Handling Charges

MAP-Albayrak

Per Container

$    182.91

Yes

20/40 FT

Bribe

Ministry of Finance

Per Bill of Landing

$      20.00

No

20/40 FT

Unsealing Containers

Albayrak+

NISA+

Police

Per Container

$      20.00

No

20/40FT

Bribe

Police

Container

$       3.00

No

20/40 FT

Truck

Trucking company

Container

$    250.00

Yes

20 FT

Truck

Trucking company

Container

$    500.00

Yes

40 FT

It is no secret that the port is a major source of revenue for both Mogadishu municipality and the federal government. There is need for more efforts to explore and systemically address the above obstacles and hindrances that threaten the smooth operations at the port. This is the country’s top income earner and must be treated as so. It can only get better . . . only if all the stakeholders play their part.

 

GSM Business Solutions

info@gsmbusinessssolutionss.net