DP World signs 30-year concession to operate Dar es Salaam Port
DP World will initially invest more than $250mn to upgrade the port, will handle roll-on/roll-off, bulk and containers
DP World has signed a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate and modernise the multi-purpose Dar es Salaam Port, connecting Tanzania and the wider region to global markets.
The concession agreement was signed by Plasduce Mkeli Mbossa, Director General, TPA and Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World in the presence of Samia Suluhu Hassan, President, United Republic of Tanzania, says a release from DP World.
DP World will initially invest more than $250 million to upgrade the port and the investment could increase to $1 billion during the concession period, alongside hinterland logistics projects, the release added. "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, the release said. "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."
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World says: “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."
Plasduce Mkeli Mbossa, Director General, TPA adds: “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.”