DP World Ltd. said it won a bid to operate part of Tanzania’s Dar Es Salaam port and will invest more than $250 million to upgrade the facilities.
Investment may increase to $1 billion during the concession period, according to a statement on DP World’s website. The deal expands the Dubai-based company’s reach across the east Africa, where it already has interests in Somalia, Eritrea, Djibouti and Mozambique.
Tanzania announced in June it was in talks with DP World to manage the port’s berths one through seven. President Samia Suluhu Hassan, who is fast-tracking several large projects including a liquefied natural gas terminal, wants DP World to triple revenue from the facility to 26.7 trillion shillings ($10.7 billion) over the next decade from 7.76 trillion shillings in 2021-22, Works and Transport Minister Makame Mbarawa said in June.
Fresh investment from DP World is expected to help reduce congestion and slash the average stay for a vessel to 24 hours from five days, and speed up clearing times to 60 minutes from 12 hours, Mbarawa said.
DP World will handle roll-on/roll-off, bulk, general cargo and containers to cater to future trade demand from eastern and southern Africa, according to the statement
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.
Speaking on the occasion, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “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 H.E. Samia Suluhu Hassan. 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. 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”.
H.E. Professor Makame Mbarawa, Tanzania’s the Minister of Transport 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”.
Plasduce Mkeli Mbossa, Director General of Tanzania Ports Authority added: “We are excited to collaborate with DP World to modernise the strategic port in Dar es Salaam. 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.”
DP World continues to make significant investments to realise its Africa strategy and growth ambitions, which aim to boost economic growth and uplift local communities and businesses through enabling trade and connecting markets to the global trade ecosystem.