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DP World signed three contracts with the Tanzanian government to operate part of Dar es Salaam’s port for 30 years under a controversial deal covering all the country’s ports. The new contracts give DP World exclusive management of four of the city docks’ 12 moorings and of four more in partnership with the Tanzania Port Authority.
DP World signed three contracts with the Tanzanian government to operate part of Dar es Salaam’s port for 30 years under a controversial deal covering all the country’s ports. The new contracts give DP World exclusive management of four of the city docks’ 12 moorings and of four more in partnership with the Tanzania Port Authority. The contracts will be reviewed every five years, said TPA Director General Plasduce Mbossa. The signings follow an intergovernmental agreement inked last October by President Samia Suluhu Hassan paving the way for DP World to manage all the ports in Tanzania in consultation with the government.It was ratified by parliament in June, sparking protest. Critics of the deal say it poses a threat to Tanzanian sovereignty and security, but the government has argued it will improve efficiency, cut costs and increase revenues.
The move will allow the company to upgrade Dar es Salaam port into a world-class facility, building an even greater logistics hub for Tanzania. The Dubai government-controlled firm has pledged to invest $250 million over the next five years in the port, one of the biggest on the African continent stated DP World CEO Sultan Ahmed bin Sulayem.
Transport Minister Makame Mbarawa told parliament that the investment by DP World would improve the performance of Tanzanian ports, allowing more ships to dock there. The cost of transit cargo will also drop by almost half.
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This development will deliver trade opportunities for the region, connecting East Africa and broader sub-Saharan Africa with global markets, driving economic growth, job creation, enhanced access to products and services, and creating value for all its stakeholders. This agreement marks another milestone in enhancing the region’s supply chain to support the economic growth of the entire continent.
