DP World transforms Dar Port
DAR ES SALAAM: THE government has outlined achievements recorded by the port of Dar es Salaam since being 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 325.3bn/- in revenue from the agreements signed between Tanzania Ports Authority (TPA) and DP World, including land rent, royalty and wharfage,” he said.
He added: “Due to increased revenue and reduced operating costs following the improvements made, the government, through TPA, has started investing in projects worth 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.”
Prof Mkumbo said since taking over operations DP World has slashed ship waiting times at anchor from 46 days in May 2024 to an average of seven days, with zero days for container ships, 12 days for bulk carriers and 10 days for general cargo ships.
The Minister said this while presenting Tanzania’s 2025/26 National Development Plan proposals in Parliament yesterday, 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, he said DPW is required to invest 250 million US dollars (about 675bn/-) over five years. Within five months, they have already invested 214.425bn/- (31 per cent) for the purchase of modern equipment; the repair of TPA equipment and the design and installation of a modern port management IT system. “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,” he said.
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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.
As per the laws, 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.
