DP World has signed a 30-year concession arrangement with the Tanzania Ports Authority (TPA) to run and upgrade Dar es Salaam Port, which connects Tanzania and the wider area 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 H.E. 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 stage of a multi-stage investment strategy. DP World would initially invest more than $250 million in port upgrades, with the expenditure potentially increasing to $1 billion throughout the concession period, in addition to hinterland logistical projects.
This investment will boost Tanzania’s socioeconomic growth by creating jobs and increasing access to products and services, among other things.
The port will link to Sub-Saharan Africa’s interior via a network of roads, highways, trains, and specialised freight corridors and ports, supporting the continent’s expanding need for logistics solutions and connecting enterprises in the area to global markets.
DP World will collaborate with the TPA and the port’s existing stakeholders to build on this progress, allowing for faster cargo clearance and improved cargo planning, thereby strengthening Dar es Salaam’s role as the maritime gateway for green energy metals from Southern-Central Africa’s copper belt.
Future investments in port modernisation will be made by DP World, including prospective investments in temperature-controlled storage to benefit Tanzania’s agriculture industry, as well as increased connectivity to rail-linked logistics.
According to DP World, investments may also involve the future establishment of a special economic zone in conjunction with the port’s larger logistics industry, which will expand Tanzania’s position and impact in the future of global commerce.
Speaking on the occasion, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are honoured to partner with the Government of Tanzania to revitalise the port of Dar es Salaam.
“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.
“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.”
Plasduce Mkeli Mbossa, Director General of Tanzania Ports Authority, added: “We are excited to collaborate with DP World to modernise the strategic port in Dar es Salaam. This project will create significant value for end-users and help the government achieve its goal of reducing logistics costs.
“This strategic initiative is a testament to our ability to drive large-scale infrastructure development by partnering with strategic players, which will allow the government to redirect funds to other critical areas of the economy for the benefit of the people of Tanzania.”