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The port of Dar es Salaam has achieved significant milestones in terms of efficiency, revenue generation and overall operations in the five months (April to September 2024) since DPW Dar es Salaam began operating berths 0-7. During this period the government has collected TZS 325.3bn/- in revenue.
The Tanzanian government has outlined achievements recorded by the port of Dar es Salaam since it was handed over to the global port operator -DP World in April 2024. According to the Minister of State in the President’s Office, Planning and Investment, Prof Kitila Mkumbo, the port has achieved significant milestones in terms of efficiency, revenue generation and overall operations. In the five months (April to September 2024) since DPW Dar es Salaam began operating berths 0-7, the government has collected TZS 325.3bn/- in revenue from the agreements signed between Tanzania Ports Authority (TPA) and DP World, including land rent, royalty and wharfage.
Due to increased revenue and reduced operating costs following the improvements made, the government, through TPA, has started investing in projects worth TZS 1.922tril/- using the collections obtained. These projects are the Construction of a Single Buoy Mooring (SBM), the Construction of Mgao Island Port (Mtwara) and the Construction of Dhow Wharves in Dar es Salaam.
The Minister said this while presenting Tanzania’s 2025/26 National Development Plan proposals in Parliament, where he highlighted major strides in the 2023/24 development plan, particularly in port operations, a vital component of the Five-Year Development Plan. Prof Mkumbo further said that deploying advanced equipment such as Sea-to-Shore Gantry Cranes (SSGs) and Rubber-Tyred Gantry Cranes (RTGs) has significantly accelerated cargo handling operations. As a result, the turnaround time for container ships has been reduced from an average of seven days to just three days. This efficiency boost has led to a dramatic reduction in the number of ships waiting at anchor, from 35 ships in September 2023 to 15 ships in September 2024,” Prof Mkumbo said.
According to the contract, DPW is required to invest 250 million US dollars (about TZS 675bn/-) over five years. Within five months, they have already invested TZS 214.425bn/- (31 per cent). There is also an increase in cargo handled from 141,889 tonnes in May 2024 to 168,336 tonnes in September 2024, representing an increase of 18.6 per cent over five months.
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On October 22, 2023, the government, through TPA, signed three investment agreements with DP World (Dubai). This agreement involves the operation of port activities in the handling of containers, general cargo, bulk cargo and vehicle cargo. DP World established a Tanzanian company called DP World Dar es Salaam to provide these services. This company was officially handed over the port operations on April 15, 2024.
