DP World has signed a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate and modernize the multi-purpose Dar es Salaam Port, connecting Tanzania and the wider region to global markets.
The concession to operate and modernize the Dar es Salaam Port was awarded to DP World with the primary objective of optimizing the Port’s operations to improve transport and logistics services throughout Tanzania and its hinterland.
This is the first phase of a multi-phase investment plan. 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. This investment will have a positive impact on Tanzania’s socio-economic development, in terms of job creation and increased access to products and services, among other benefits.
Sultan bin Sulayem Group Chairman & CEO – DP World
“We are honored to partner with the Government of Tanzania to revitalize the port of Dar es Salaam. This is in line with Tanzania’s strategic development plans and is a testament to the visionary leadership of 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 services, 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.”
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.
According to the statement, 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.
Prof. Makame Mbarawa, Tanzania’s Minister of Transport, said that, “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 in 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.”
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
