Euro Commercials: Transportation, Haulage and Heavy Lifting in Tanzania by Dismas Massawe

Interview with Dismas Leone Massawe, CEO and Managing Director at Euro Commercials Ltd

What is the history of the company?

EuroCom started back in 2003. I was studying in the UK. Then I started selling trucks to my friends in Tanzania. Over a period of time, I got a commission then a bit of my own capital. When I came back, I got married and I started EuroCom. I started with one truck then built up to five trucks. I also started doing training on trucks. I was involved in the construction of a huge stadium called the Dar Es Salaam Football Stadium. It was built by the Chinese and I was one of the subcontractors. Little by little, I started getting projects from big companies because I was systematic and professional. I worked with a company called Symbian Powers and I was responsible for subcontracting for all transportation and the logistics of generators and transformers because the company was doing temporary power generation. I did that for over seven years with other small projects. Recently, I am moving into heavy lifting because there is money and few players. There is a lot of opportunity in that area. We also moved into shipping, mining, many industries. Now, we are still working with the construction industry. They do very well. We have the SGR standard gauge rail line which is a huge project. We are also developing our own facility near the road because we also work with the ports and partners where we are working to build a container terminal area. We are definitely growing.

What is your scope of business itself and your competitive advantages?

My vision is to be one of the largest companies in lifting and heavy lifting industries in the region. I want to be a choice among others.

In terms of the scope of our lifting business, we have claimed 60 tons to 40 tons or we take from partners. We are building the airport bridges or lifts at the port. There is a lot of fixing on the industries and factories so they will need us. We get a lot of calls and inquiries, sometimes 20 inquiries per week. We do most of the local and international inquiries for companies who wish to come to Tanzania and we also do some jobs through tendering.

What makes EuroCom stand out from the other haulage companies?

What makes us stand out is our promptness, professionalism and integrity. That is what keeps us in business. We offer solutions immediately and our rates are very competitive.

What is your general assessment of the logistics industry in Tanzania?

The logistics industry in Tanzania is huge. Because of the ports, all the goods from neighboring countries that are landlocked have to pass through Dar Es Salaam. That becomes the advantage for us to get clients.

Have you implemented any new strategies or seen new opportunities as a result of COVID?

COVID-19 has brought a lot of challenges locally and globally. Still, business must go on. We are not operating like a restaurant where it is crowded. Going to site such as with a mining job, there will be about three or four people, so social distancing for us was an advantage because it was automatic. It did not affect our operations, but getting more clients slowed down.

What kind of investors are you looking to attract?

We have a law called Local Contents whereby investors coming to Tanzania must cooperate with a local company or businessman to invest. So, we are looking for such companies who are able to come in, bring equipment for construction or lifting, etc. We know the industry. We have been here for close to 20 years. We know the clients. We just need to strengthen our partnership. So, we will look for funding or investors who will come and buy shares and buy equity from our company and they do all the necessary operation.

Are you looking for regional investors or more international and global investors?

We are interested in global and international investors.

Are you looking for partners that can provide you with knowledge or equipment as well and services or only funding? Or is it a little bit of both?

We are looking for both because having them with their capital here, they must be here to also protect their interest.

Currently, what projects are you working on?

Apart from the cargo facility we are developing right now, we are also working with companies such as Barrick Gold, which is an American mining company. We have been working with Tanzania Ports Authority. We are also working with a huge company called TICTS (Tanzania International Container Terminal Services) lifting the containers. We are also working with a gas company and the Tanzania railways construction with a Turkish company. We also get small jobs from local companies.

Are most of your clients from inside Tanzania or outside of Tanzania?

We work with companies inside Tanzania but affiliated from outside Tanzania. For example, with mining companies, the majority shareholders are not local. They come with a huge investment. We work with Australians, Americans, Canadians, Belgians, Malaysians, Turkish, Chinese companies, etc.

Do you find that you understand the local business, the local needs, the local culture? Is that something that you feel you can offer to these companies that want your services that maybe have never even been to Tanzania before?

Yes, when you know your own house, you can do things easily such as documentations, the procedure for inserting a company, selecting local staff, construction, etc.

What is your vision for the company in the medium term?

My vision is to be one of the largest companies in lifting and heavy lifting industries in the region. I want to be a choice among others.

What are some activities or programs that you are doing to push that agenda?

I am looking for partners from within the region and we are looking for inquiries. We are contacting various shipping lines who we would like to work together with.

How positive has the response or the feedback been so far?

The response is huge, but depending on finalizing the construction because most shipping lines want turnkey. They do not want to come and start constructing with you. They already want reinforcement, security, installation cameras, infrastructures, your own equipment which are very expensive, etc.

What is your view of doing business in Tanzania?

Investors coming to Tanzania might think of political unrest or that the country is not stable. Tanzania is very stable, the weather is good, and developments are good. So, coming to Tanzania will not be as difficult as going to other countries where safety is low and corruption is high.

Do you feel that that is something that hinders business, that people do not know Tanzania or they have the wrong image? Is that something that you are trying to fix?

The government has put up the Tanzania Investment Center where whoever is coming to invest in Tanzania can get information online or can inquire from the embassies overseas. So, that will speed up the investment procedure.

What drives you? What is your inspiration?

What does success and being successful mean? Through my experience, I dared to go to the crane industry. I like adventures – lifting 20 containers safely and landing and placing them and I can still make money out of the adventure. I want to be a household name.

For more information, please visit: eurocom.co.tz.

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