23 October 2023 (Lloyd's List) - DP World has signed a 30-year concession deal with the Tanzania Ports Authority that will see it invest up to $1bn in Dar es Salaam port over the course of the agreement.
The concession to operate and modernise the port was awarded to optimise its operations to improve transport and logistics services throughout Tanzania and its hinterland.
DP World will initially invest more than $250m to upgrade the port and the investment could increase to $1bn during the concession period, alongside hinterland logistics projects.
“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,” said DP World chairman Sultan Ahmed bin Sulayem.
“Alongside other ports that we operate, this concession agreement marks another milestone in our collective efforts to leverage DP World’s global and local expertise to enhance the region’s supply chain to support the economic growth of the entire continent,” he said.
Tanzania minister of transport Makame Mbarawa said the project would create “significant value” for end users of the port and help the government cut logistics costs.
DP World will work with the TPA and the port’s existing stakeholders to build on this recent investments to allow faster cargo clearing and improved cargo planning. This would strengthen Dar es Salaam’s role as a maritime gateway for green energy metals from the copper belt in Southern-Central Africa.
“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,” DP World said.
The port will connect to the hinterland of sub-Saharan Africa through a network of roads, highways, railways and dedicated freight corridors and ports, supporting the growing demand for logistics solutions across the continent and connecting businesses in the region to global markets, it added.
DP World will operate four of the 12 berths at the multi-purpose port. The government is still looking for an investor to take over the concession for the other four container berths.
