DP World + Tanzania Ports Authority sign agreement to operate Dar es Salaam Port

DP World to operate + modernize Dar es Salaam Port:DP World has inked a 30-year concession agreement with TanzaniaPorts Authority (TPA) to operate and modernize Dar es Salaam Port, kicking off the first of a “multi-phase” plan, according to a press release. The port is set to link the hinterland of sub-Saharan Africa through a network of roads, highways, railways, and dedicated freight corridors and ports to serve increased demand for logistics solutions.

The details: DP World is set to invest some USD 250 mn to upgrade the port, with the investment reaching a potential USD 1 bn during the concession period in conjunction with hinterland logistics initiatives. The company is also looking to partner with the TPA and port stakeholders to offer faster cargo clearing and better cargo planning to enhance the port’s role as a gateway for green energy metals from the copper belt in Southern-Central Africa.

What does “modernizing” the port entail? The company could invest in implementing temperature-controlled storage at the port, as well as implementing connections to rail-linked logistics. DP World is also considering developing a special economic zone to boost Tanzania’s role in global trade, the statement added.

What they said: “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,” Tanzanian Transport Minister Makame Mbarawa was quoted as saying in the statement.

Background: DP World has been eyeing East African expansion, with the company previously holding discussions with Tanzania to manage seven berths at Dar es Salaam Port. The talks also touched on the company’s plans to build cold storage facilities and invest in advanced technology. The Tanzanian government wants DP World to drive a threefold rise in revenues from the facility to USD 11.2 tn over the coming decade.