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.
