DP World continues to expand capabilities in Sub Saharan Africa

DP World is steadily increasing its focus on Africa, and the latest announcement was a $165 million announcement to expand the container terminal in Maputo, Mozambique. The plan is to double container handling capacity from 255,000 to 530,000 TEUs, extend quay length from 308 metre to 650 metre and offer more reefer plugs capacity to boost Mozambique’s agricultural exports.

Sultan Ahmed Bin Sulayem, Group Chairman & CEO, DP World, Chairman of the Ports, Customs & Free Zone Corporation during his visit to Africa highlighted how Nigeria remains a key driver of economic growth in sub-Saharan Africa (SSA) and an essential part of DP World’s vision for trade in the region.

"Touring our operations in Lagos, I saw firsthand how our investments are making a real impact by enhancing connectivity, expanding market access and fostering sustainable development. From world-class warehousing to extensive market access services, we are enabling businesses to thrive. With $6.74 billion of direct and indirect value created in Nigeria in FY22 and FY23, we remain committed to driving long-term prosperity and expanding our presence across the country and beyond," Sulayem wrote on LinkedIn.

Edited excerpts from an interview with Mohammed Akoojee, CEO & Managing Director, Sub-Saharan Africa, DP World about the developments in the region.

DP World has announced plans to invest over $3 billion across Africa over the next three-five years. What are the plans here?
Akoojee: The most recent investment announcement is in addition to $3 billion already invested in the region in the last three–five years, including the acquisition of Imperial.

Our current and future investment plans encompass a few main projects, namely the construction of the ports of Ndayane in Senegal and Banana in the DRC as well as the expansion of the Maputo Port. We also continuously seek out viable opportunities to expand our logistics and market access network on the continent.

For the development of the deep-sea port at Banana, DP World is developing an initial 600-meter quay with an 18m draft, capable of handling the largest vessels in operation. It will have a container handling capacity of about 450,000 TEUs per year, and a 30-hectare yard to store containers. As a vital transportation hub for the country and a gateway for exports and imports to and from the DRC, the development of the Banana Port will bring significant cost and time savings for trade by attracting more direct calls from larger vessels from Asia and Europe.

The new port development is expected to enable the creation of approximately 85,000 jobs and approximately $1.12 billion in additional trade and $429 million in increased economic output annually.

Last year (2024), the government of Mozambique approved the extension of the Maputo Port Development Company’s (MPDC) concession of the Port of Maputo from 2033 to 2058. As a shareholder of the MPDC, DP World is excited about the inclusion in the expansion plans that will further solidify the port's position as a pivotal trade hub for Southern Africa.

The expansion of the Port of Maputo will play a pivotal role in reinforcing Mozambique’s position as a regional trade hub, particularly for Southern African countries reliant on efficient port access. This investment will focus on the enhancement of quay infrastructure that will enable the port to handle larger vessels, increase cargo throughput, and streamline logistics operations to meet the growing demand for global trade.

Phase 1, which commenced in January 2025, will increase the yard capacity by 6.48 hectares, doubling throughput from 255,000 TEUs to 530,000 TEUs. The total quay length will be extended to 650 meters, a significant increase from the current 308 meters. The berth will be deepened from 12 to 16 meters on an extension of 400 meters.

To manage larger container volumes and a diverse range of commodities, new state-of-the-art equipment will be introduced, including three ship-to-shore (STS) cranes capable of Panamax and Post-Panamax vessels and an expanded fleet of rubber-tyred gantry (RTG) cranes, complementing the existing mobile harbour crane (MHC) fleet. Reefer capacity will increase from 450 to 715 plugs.

Capacity at the port is set to increase to 54 million tonnes per year by 2058, from 37 million tonnes in 2024, according to the extended concession agreement. This includes expanding the coal terminal in Matola next to Maputo to 18 million tonnes yearly from 7.5 million tonne. Annual shipping container capacity will almost quadruple to a million units over the same period.

In addition to the port expansion, a new rail connection between DP World Komatipoort (South Africa) and the terminal will facilitate faster cargo movement between Maputo and Gauteng, reducing border clearance times and delays. The facility at Komatipoort will also handle bulk operations, further cementing its role as a key player in the regional supply chain.

These improvements will significantly enhance Mozambique’s trade competitiveness, making Maputo a preferred gateway for neighbouring landlocked countries such as Zimbabwe, Eswatini and South Africa’s northern provinces. With the increment of efficiency and reducing congestion, our aim is to position Maputo as a key gateway, attracting more shipping lines and driving economic growth in the region.

DP World started construction of the $1.2 billion port in Senegal. What is the update there?
Akoojee: The $1.2 billion Port of Ndayane will transform Senegal into a regional trade leader, unlocking new opportunities for economic growth, employment and global connectivity. The new port will significantly enhance trade efficiency in West Africa by:

*Reducing congestion at the Port of Dakar, which is currently challenged by high volumes of traffic.

*Accommodating larger vessels, increasing trade capacity and efficiency. Phase 1 of the project includes an 840 metre quay and a five km channel capable of handling the world’s largest container ships, with a capacity of 1,200,000 TEU. Phase 2 will add a further 410 metre quay; and

*Boosting Senegal’s economy by strengthening its role as a regional trade hub.

The port will also be a significant driver of job creation and economic growth. During construction, the project will create over 1,800 jobs. Once operational, it is expected to support 2.3 million jobs across Senegal, including 22,000 directly tied to expanded trade.

The development of Port Ndayane is necessitated by the spatial and logistical challenges at the Port of Dakar, which is situated in a densely urbanised area. Limited space for expansion, congestion from urban growth and increasing trade volumes have constrained Dakar’s ability to scale operations efficiently, reinforcing the need for the new deep-water Port of Ndayane as a strategic solution to support Senegal’s long-term trade and economic growth ambitions. The new port will alleviate pressure on Dakar’s existing infrastructure while providing state-of-the-art facilities designed for modern shipping demands.

The new deep-water port, located approximately 50 km south of Dakar, will be one of the largest and most advanced ports in West Africa once completed. Its 18-metre draft will allow it to accommodate some of the world’s largest vessels, significantly increasing trade efficiency and reducing reliance on transshipment hubs outside the continent. With an initial annual capacity of 1.2 million TEUs, the port is expected to become a major logistics hub for West African trade, enhancing connectivity between Senegal and key markets in Europe, Asia, and the Americas.

Has DP World acquired any other company to speed up growth?
Akoojee: In sub-Saharan Africa, DP World acquired the then JSE-listed Imperial Logistics in March 2022 and with that came a significant presence in Nigeria with a primary focus on the healthcare and consumer industries (market access and logistics capabilities).

In July 2022, our market access business completed the acquisition of a controlling stake in Africa FMCG Distribution (AFMCG) in Nigeria, which was part of the Chanrai Group of Companies. AFMCG is a multi-faceted business, distributing products that positively impact the lives of consumers in Africa every day. The business offers a nationwide and best-in-class route-to-market solution across multiple channels in Nigeria. Its services also extend to co-manufacturing, co-packing, sourcing and value-added services in the fast-moving consumer goods (FMCG) sector.

Representing some of the world’s leading multi-national FMCG companies and their brands, AFMCG has a wide-ranging product portfolio and is managed by an experienced, efficient and highly professional team, supported by robust technology and infrastructure. The strategic move enhances our ability to connect trade flows into and out of Nigeria, tapping into the country's significant consumer market.

In the healthcare sector, DP World is involved in healthcare logistics, providing essential services such as cold chain logistics and distribution of medical supplies. Our partnership with UNICEF has enabled the delivery of vaccines and other critical healthcare supplies to remote areas. Our involvement in this sector ensures that quality healthcare solutions are accessible across Nigeria, contributing to the overall improvement of healthcare infrastructure in the market.

What are the other measures being implemented by DP World to increase economic contribution to these countries?
Akoojee: We are continuously expanding our capabilities in SSA, all of which bring added growth opportunities and job creation.

From a socio-economic perspective, in May 2024, DP World launched a partnership with WaterAid in Bauchi, Nigeria. Building on the impactful legacy of the initiative in Mozambique, DP World is amplifying its commitment to sustainable development in Nigeria and addressing the challenges of climate change and rapid urbanisation in Bauchi State by enhancing water, sanitation, and hygiene (WASH) infrastructure - a crucial foundation for the health and well-being of communities.