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ASLINE - AFRICAN SHIPPING LINE DUBAI

Tuesday

DP WORLD INKS A 30 YEAR CONCESSION AT DARESALAAM PORT

 


The Dubai-headquartered logistics major and global port operator, DP World, inked a 30-year concession agreement on Sunday with the Tanzania Ports Authority (TPA) to operate and modernize the multi-purpose Dar es Salaam port, as part of its strategy to extend its footprint in Africa.

Agreement details

The agreement aims to optimize the port’s operations and improve transport and logistics services across Tanzania and the region.

As part of the first phase of DP World’s multi-phase investment plan, the company will channel more than $250 million to upgrade the port. Meanwhile, the total investment during the concession period could increase to $1 billion, including potential investments in temperature-controlled storage to enhance Tanzania’s agricultural sector, as well as greater connections to rail-linked logistics.

Furthermore, DP World has unveiled plans to invest in the development of a special economic zone together with the country’s broader port sector, which will bolster Tanzania’s role in facilitating global trade.

Regional impact

The port development project will connect to the sub-Saharan Africa region through a network of roads, highways, railways, and dedicated freight corridors and ports, supporting the rising demand for logistics solutions across Africa and connecting businesses across the region to global markets.

Under the agreement, DP World will collaborate with the TPA and the port’s existing stakeholders to facilitate faster cargo clearing and improved cargo planning, further strengthening Dar es Salaam’s position as the maritime gateway for green energy metals from the copper belt in Southern-Central Africa.

Moreover, the planned developments will enhance the port’s overall operational efficiency. This, in turn, will attract more shipping lines and bigger ships to Dar es Salaam and ultimately reduce ocean freight costs for Tanzanian importers and exporters.

Currently, the company manages nearly 9% of the world’s handling capacity, positioning itself among the top five global port operators.



Saturday

UPDATE 4: RED SEA SHIPPING ROUTES : MAY 2024


The leader of the Houthi movement (Yemen) called for a further escalation of the attacks on shipping citing the potential attack on the city of Rafah and as Western pressure grows on Hamas to accept the terms of a proposed ceasefire. The statements came during their weekly demonstrations in Sanaa staged on Fridays and after a week of increased assaults targeting commercial vessels and U.S. warships.

“The Yemeni armed forces announce the beginning of the implementation of the fourth stage of escalation,” Houthi spokesperson Yahya Saree announced in a televised speech and in posting on social media. He said it was effective immediately from “the moment of this statement.”

The statement said they were targeting all ships “violating the ban on Israeli navigation,” and heading to Israeli ports in the Mediterranean. They vowed attacks in “any reachable area,” within their range, which some media outlets are interpreting as a threat against ships in the Eastern Mediterranean. That would require a range of nearly 1,200 miles Bloomberg highlights but comes days after a Houthi drone appeared to have struck the MSC Orion in a range of 300 to 400 nautical miles south of Yemen in the Indian Ocean.

The Houthi also threatened to expand their attacks to “all ships and companies that are related to supplying and entering [Israeli ports] of any nationality if a military operation is launched against Rafah” in southern Gaza. 

They said they targeted the MSC Orion container ship Monday in a drone attack in the Indian Ocean as part of their ongoing campaign against international shipping in solidarity with Gaza. Portugal-flagged MSC Orion was sailing between the ports in Sines, Portugal and Salalah, Oman and its registered owner is Zodiac Maritime, according to LSEG data. 

Zodiac is partly owned by Israeli businessman Eyal Ofer. The company did not immediately respond to a request for comment.

SHIPPING LINES AVOID RED SEA BY ALL MEANS

SUMMARY:

  • Shipping mostly settles into new normal avoiding the Red Sea.
  • The industry has largely become accustomed to longer routes though some ports are still adapting to increased volumes.

The shipping industry has settled into a new normal with routes avoiding the Red Sea according to industry experts, despite the Houthi militant group vowing to escalate attacks in the region. 

Analysis from online freight marketplace Freightos found that while the adjustments made by the industry continued to disrupt, the worst of the backlogs and shortages seen at the beginning of the Red Sea crisis have largely dissipated. 

An update from the company said issues mainly persisted in ports that were now being used more frequently than usual, as shipping operators change their routes to avoid the Red Sea, where the Houthi group have been attacking ships seen to be associating with Israel and the US has been retaliating in Yemen. 

Freightos said: “Some West Mediterranean ports are now being used as transshipment hubs for East Mediterranean-bound containers, leading to some congestion there, and terminals in Colombo, Sri Lanka are also facing some backlogs as volumes have increased there for transshipment to the Middle East.”