One of the to high speed crafts under construction, each built for 650 passengers accross Unguja, Pemba, Dar Es Salaaam, Mombasa and Tanga; with VIP, first class and regular classes.
Zanzibar Shipping Corporation (SHIPCO) has navigated turbulent waters for decades before finally introducing reforms that enabled it to record clean books of account, post profits, and even hand the Government of Zanzibar a cheque for a dividend. Certainly with a sigh of relief.
The developments are a milestone for a corporation that has been heavily dependent on government subsidies and bailouts since its establishment in 1978.
The storms began in the early 1990s due to stiff market competition from more liquid private sector players, high operating costs, aging ships, inadequate competent seafarers, and ineffective operating practices.
It should be remembered that running a shipping company is not a walk in the park; it is a complex, capital-intensive business with significant operational costs, including fuel, crew salaries, ship maintenance and repairs, insurance, port fees, and provisions.
Despite the increasing challenges, SHIPCO had one advantage it exploited to make a comeback: it is the only shipping operator in Zanzibar with a legacy that couldn’t be allowed to fade away.
This was once a reputable shipping company in Eastern and Southern Africa that served nearly all ports in the region, including Mtwara, Tanga, Dar-es-Salaam, Pemba, Mombasa (Kenya), Mogadishu (Somalia), Beira (Mozambique), Comoros, and Seychelles.
Additionally, it had branches in Pemba, Dar es Salaam, Tanga, and Mtwara.
MV Maendeleo at Mkoani Port, Pemba (Picture Source: Online)
Hurdling through reforms
Over the past decade, SHIPCO embarked on reforms meant to reclaim its former glory. In 2023, its two ships, namely MT Ukombozi and MV Maendeleo, were sold off because they were so old that frequent costly maintenance was needed to keep them operational.
SHIPCO sold them as scrap, with MV Maendeleo going for US$230,000 and MT Ukombozi fetching USD 251,000.
MV Mapinduzi II was taken through major repairs to enable it to provide reliable and affordable services to passengers between Pemba and Unguja.
It should be remembered that in 2020, MV. Mapinduzi II was damaged and was unable to provide passenger and cargo transportation services, causing massive inconvenience to the public.
The South Korean company Kookje Engineering was contracted for a comprehensive refit, including machinery overhaul, sewage system replacement, hull cleaning and painting, and finally sending it to dry dock, Mombasa and other destinations for testing.
Over the past decade, SHIPCO embarked on reforms meant to reclaim its former glory.
At the time, the Office of the President (Finance and Planning) chipped in with funds amounting to USD 3,875,797 for the repairs. The ship has since completed 4 sea trials, including one to Pemba and back to Unguja.
The ship has returned from a lay-up in Mombasa, where it was repainted and inspected for any other repairs. It is currently back in Zanzibar and is preparing to set sail this October.
MT Ukombozi II was also sent for dry docking in Mombasa for three weeks of maintenance starting in January 2023. The maintenance included inspection and painting, which cost USD 261,427.10.
The efforts did not go to waste. SHIPCO has gone from a loss of nine billion shillings in 2022 to an average profit of 2.6 billion shillings for the years 2023 to 2025 and contributing to government coffers.
MV Mapinduzi at Malindi Port (Picture: Zanzi News Online)
New projects in offing
SHIPCO has embarked on a project to construct two high-speed crafts. On July 17, 2024, the Corporation entered into a contract with Synergy Ship builders of India for the construction of two high-speed crafts for USD 24,990,000.
This is the first time since its establishment that the corporation itself is building its own boats.
In the past, we have been used to seeing the government acquiring ships for the corporation to operate, and this project aims to facilitate passenger transport between Unguja, Pemba, Dar es Salaam, Mombasa and Tanga. These boats have the capacity to carry 650 passengers each.
On their capacity and delivery time, this capacity makes them the only high-speed crafts capable of carrying such passengers on the East African coast.
Both boats are being built at the same time and are expected to be built over a period of 18 months.
The boats will have a VIP section, first class and regular class. The builder is currently cutting plates and gathering various materials for the construction. The construction of the boats is expected to be completed in June 2026.
SHIPCO took over the responsibility of providing sea transport services in Zanzibar from the former shipping entity established after 1964 Revolution.
At the beginning, it had a four-ship fleet comprising MV Jamhuri and MV Africa inherited from the colonial government and the other two ships: MV Mapinduzi and MT Uhuru, procured in mid 1970s.
Subsequently, SHIPCO added two other vessels, namely MV Maendeleo and MT Ukombozi, both procured in late 1980.
Currently, SHIPCO has three ships: MV Mapinduzi II, MT Ukombozi, and MT Ukombozi II, plying mainly between Zanzibar and Mainland ports.
SHIPCO has begun renovating its existing Headquarters building, and in Dar es Salaam, it is building SHIPCO’s Branch Offices, which were in very poor condition.
The corporation is currently in a sound financial position, which has enabled it to significantly reduce its debts. A total of seven billion shillings has been availed to service domestic and external debts.
SHIPCO has successfully paid a long-term debt of USD 52,000 for MV Maendeleo staff who sent that ship to Mombasa for dry docking maintenance.
SHIPCO strengthened its container monitoring system, which has since been integrated with the Zanzibar government e-payment gateway (ZANMALIPO).
Managing Director
Zanzibar Shipping Corporation
