Tanzania Signs 30-Year Deal With DP World to transform Dar es Salaam Port

Tanzania signed on Sunday agreement with supply chain solutions specialist Dubai-based DP World, to operate and modernise the multi-purpose Dar es Salaam Port for 30 years, connecting Tanzania and the wider region to global markets.

The 30-year concession agreement with the Tanzania ports authority (TPA) has the primary objective of optimising the port’s operations to improve transport and logistics services, throughout Tanzania and its hinterland.

DP World will initially invest more than $250 million to upgrade the port and the investment could increase to $1 billion during the concession period, alongside hinterland logistics projects.

The aim is to support the growing demand for logistics solutions across the continent, and the businesses in the region, by connecting the port to the hinterland of sub-Saharan Africa through a network of roads, highways, railways and dedicated freight corridors, and ports.

The partnership with DP World will allow faster cargo clearing and improved cargo planning.

Improved efficiency will attract more shipping lines and bigger ships into Dar es Salaam, which will ultimately lead to lower ocean freight costs for Tanzanian importers and exporters, as DP reports.

In its business portfolio DP World has a plan to make future investments in modernising the port, including potential investments in temperature-controlled storage to enhance Tanzania’s agricultural sector, as well as greater connections to rail-linked logistics.

Investments will also potentially include the future development of a special economic zone together with the broader port’s logistics sector, which is believed that will increase Tanzania’s role and influence on the future of global trade.

Sultan Ahmed bin Sulayem, DP World Group chairman and chief executive, commented: “The 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 service, and creating value for all our stakeholders.”

Plasduce Mkeli Mbossa, director general of Tanzania Ports Authority mentioned: “This project will create significant value for end-users and help the government achieve its goal of reducing logistics costs. This strategic initiative is a testament to our ability to drive large-scale infrastructure development by partnering with strategic players, which will allow the government to redirect funds to other critical areas of the economy for the benefit of the people of Tanzania.”

H.E. professor Makame Mbarawa, Tanzania’s minister of Transport gave an assurance that the Tanzania Ports Authority will be a shareholder of the port concessionaire, and there will be no job losses for employees at the port authority.