Malindi port sees major revenue growth under private management
ZANZIBAR: THE Zanzibar government has recorded a significant increase in revenue and operational efficiency at Malindi Port following its handover to the private company Zanzibar Multipurpose Terminal (ZMT) under a five-year agreement with African Global Logistics (AGL).
Zanzibar’s Minister for Infrastructure, Communications and Transport, Dr Khalid Salum Mohamed, the ZMT’s management has generated an average monthly royalty of 2.07bn/- from January 2024 to January 2025, a 41 per cent increase from the 1.42bn/- the Zanzibar Ports Corporation (ZPC) previously earned after operational costs.
“Since September 2023, when ZMT took over, the government has collected a total of 29bn/- in royalties,” Dr Khalid said when he met journalists at Abeid Amani Karume International Airport (AAKIA).
His meeting with members of the Press was in response to claims from ACT-Wazalendo’s Vice Chairman, Ismail Jussa Ladu, that Malindi Port has not improved under private management.
The Minister dismissed the claims as misleading, urging the public to focus on tangible progress made under the current administration.
One of the most notable improvements under ZMT has been the reduction in ship turnaround time, which decreased from 20–40 days in previous years to just 8 days in November–December 2024.
He said “Although this increased to 14 days in January–February 2025, the Minister clarified that this was due to higher cargo and ship traffic during the Ramadan season.”
Other key infrastructure developments include: Container Yard Expansion – ZMT invested 5 million US dollars in constructing the first phase of the Maruhubi Inland Container Depot (ICD), covering 2 hectares.
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The company has also submitted a request for a further 1-hectare expansion to accommodate growing cargo volumes.
The minister also highlighted the instalment of an advanced Cargo Scanning for Faster Inspections and that ZMT has allocated space for the Tanzania Revenue Authority (TRA) to install a high-capacity scanner, capable of inspecting 20+ containers per hour (compared to the current five per hour).
The new scanner is expected to be operational within six months, reducing congestion and customs delays.
The Minister emphasised that private sector involvement was necessary after years of inefficiencies and revenue leakages at Malindi Port.
Dr Mohamed said that before ZMT took over, the 8th Phase Government under President Dr Hussein Ali Mwinyi implemented reforms to improve operations, including leadership changes at ZPC to enhance management and accountability.
Other intervention was 17bn/- investment in modern port equipment such as mobile harbour cranes, reach stackers and harbour tractors; 6.5 million eport system contract with Fortress Wasila to digitise operations; and establishing a One-Stop Centre to streamline cargo clearance.
Preparations for the construction of Mangapwani Port (transhipment and multipurpose port), including land compensation, road construction, housing development, and investor engagement for fuel storage facilities, is another crucial project to improve port services in Zanzibar.
