(3 Minutes Read)
Dar Es Salaam Port reached a significant turning point with the signing of a concession agreement between the Tanzania Ports Authority (TPA) and DP World of the Emirates of Dubai. The agreement aims to optimise the port’s operations, improving transport and logistics services throughout the country and its hinterland.
This is the first phase of a multi-phase investment plan. DP World will initially invest over USD 250 million to upgrade the port, with the investment increasing to 1 billion US dollars during the concession period. This investment will also include hinterland logistics projects.
The signing of the concession agreement between the government and DP World is a momentous event. It marks another significant breakthrough in building best-in-class infrastructure in Tanzania under the public-private partnership model, stated Tanzanian Minister for Transport Prof Makame Mbarawa during the historic signing event of three agreements in Dodoma last October.
With DP World’s expertise, the port will play an important role in supporting the creation of direct and indirect employment in various sectors such as transportation, distribution, and supply chain. Importantly, TPA will be a shareholder of the port concessionaire, and there will be no job losses for employees at the port authority. The three agreements signed are the Host Government Agreement (HGA) and the lease and operation agreements between the Tanzanian government and DP World.
TPA Director General Plasduce Mbossa highlighted the lack of substantial investment at the Dar es Salaam Port as a major cause of inefficiencies, preventing it from competing with neighbouring ports and operating below international standards. The waiting period for a ship to dock is an average of five days at the Dar es Salaam Port, compared to 1.25 days at Mombasa and 1.6 days at Durban. He attributed these inefficiencies to the absence of modern Information and Communication (IT)systems, insufficient area for cargo storage, few docks for ship anchorage, and a lack of modern equipment for loading and unloading ships.
The investment in the Dar es Salaam Port will have a positive impact on Tanzania’s socio-economic development, including job creation and increased access to products and services.
The port will connect to the hinterland of Sub-Saharan Africa through a network of roads, highways, railways and dedicated freight corridors and ports. This will support the growing demand for logistics solutions across the continent and connect businesses in the region to global markets.
Read Also:
https://trendsnafrica.com/tanzania-signs-port-contracts-with-logistics-giant-dp-world/
https://trendsnafrica.com/tanzanias-deal-with-dp-world-dubai-rakes-up-ruckus-among-opposition/
DP World, the trade and logistics company, will work with the TPA and existing stakeholders to improve cargo clearing and planning, strengthening Dar es Salaam’s role as the maritime gateway for green energy metals from the copper belt in southern-central Africa. The company will also invest in modernising the port, potentially including temperature-controlled storage to enhance Tanzania’s agricultural sector and greater connections to rail-linked logistics. These investments may also involve the future development of a special economic zone alongside the port’s logistics sector, further increasing Tanzania’s role and influence in global trade.
