DODOMA: THE 30-year concession deal to operate multi-purpose Dar es Salaam Port was finally sealed on Sunday between the Tanzania Ports Authority (TPA) and DP World of Dubai, promising significant transformation of the country’s main gateway.
The concession to operate and modernise the Dar es Salaam Port was awarded to DP World with the primary objective of optimising the port’s operations to improve transport and logistics services. DP World will operate berths four to seven of the port and have user rights for berths zero to three.
The concession agreement was signed at the Chamwino State House in Dodoma by TPA Director General, Mr Plasduce Mbossa and Group Chairman and Chief Executive Officer (CEO) of DP World, Sultan Ahmed Bin Sulayem in the presence of President Samia Suluhu Hassan.
Shortly before signing the deal, Mr Sulayem expressed DP World’s commitment to transform the Dar es Salaam Port with massive investment of over 250 million US dollars (about 623bn/-) in the next five years to upgrade the port.
He said Investment could increase to 1 billion US dollars (about 2.5tri/-) during the concession period, alongside hinterland logistics projects.
“This is the first phase of a multi-phase investment plan. DP World will initially invest more than 250 US dollars million (about 623bn/-) to upgrade the port and the investment could increase to 1 billion US dollars (about 2.5tri/-) during the concession period, alongside hinterland logistics projects. This investment will have a positive impact for Tanzania’s socioeconomic development, in terms of job creation and increased access to products and services, among other benefits.
“Our immediate focus will be on building faster and improve cargo clearing and planning to eliminate the delay that shipping companies are facing today, we will strengthen the port role as maritime gate way,” Mr Sulayem said.
To achieve the fundamental target, he said, DP World will transform the Dar es Salaam Port through implementation of a multiphase plan that encompasses improving transport and logistics services throughout the country.
He said the improved port infrastructures will enable Tanzania to further accelerate realisation of the African Continental Free Trade Area (AfCFTA) by cutting costs of transporting goods to and from the neighbouring countries.
He 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.
“The port has greatly benefitted from recent investments made by the government of Tanzania to improve its infrastructure.
“DP World will work with the TPA alongside the port’s existing stakeholders to build on this progress to allow faster cargo clearing and improved cargo planning – strengthening Dar es Salaam’s critical role as the 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,” he said.
He said DP World will 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 will increase Tanzania’s role and influence on the future of global trade.
“We are honoured to partner with the government of Tanzania to revitalise the port of Dar es Salaam. This is in line with Tanzania’s strategic development plans and is testament of the visionary leadership of Samia Suluhu Hassan,” he said.
Minister for Transport Professor Makame Mbarawa said, “The signing of the concession agreement between the government of Tanzania and DP World is a momentous event indeed, as it marks yet another significant breakthrough in building best-in-class infrastructure in Tanzania under the Public-Private Partnership model.
“With DP World’s expertise the port will play an important role supporting the creation of direct and indirect employment in various sectors such as transportation, distribution and supply chain. Importantly, 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.”