UAE’s DP World announced in a statement that it 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 between Plasduce Mkeli Mbossa, Director-General of the TPA and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, in the presence of Samia Suluhu Hassan, President of the United Republic of Tanzania.
The concession to operate and modernise the Dar es Salaam Port was awarded to DP World with the primary objective of optimising 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 US$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 for Tanzania’s socioeconomic development, in terms of job creation and increased access to products and services, among other benefits.
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. 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.
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.
