DP World to invest $250m in deal to run part of Tanzanian port
DP World Ltd. has successfully won a bid to manage a portion of Tanzania's Dar es Salaam port and is committing to invest more than $250 million in upgrading the port's facilities. During the concession period, this investment could potentially increase to $1 billion, as stated in a statement.
The Tanzanian government had announced its intentions to engage in discussions with DP World in June regarding the management of certain port facilities. President Samia Suluhu Hassan, who is overseeing various significant projects, including a liquefied natural gas terminal, aims for DP World to triple the facility's revenue over the next decade, targeting $10.7 billion, as relayed by Works and Transport Minister Makame Mbarawa in June.
As part of the 30-year concession, DP World will manage berths four to seven. Tanzania is also actively seeking private investors to operate a four-berth container terminal following the expiration of the lease agreement with Hutchison Ports in December. This strategic agreement expands DP World's presence in East Africa, where the Dubai-based company already has interests spanning from Somalia to Mozambique.
The injection of fresh investment by DP World is anticipated to alleviate congestion and significantly reduce the average vessel stay at Dar es Salaam from five days to 24 hours. It will also streamline clearing times, aiming to bring them down to just 60 minutes from the current 12 hours. DP World's responsibilities will encompass handling various types of cargo, including roll-on/roll-off, bulk, general cargo, and containers, in preparation for future trade demand from both Eastern and Southern Africa. This investment is poised to enhance the efficiency and competitiveness of Tanzania's port operations while enhancing Dar es Salaam's competitiveness as a trade hub in the region, positioning it against the likes of Mombasa and Durban. Furthermore, the Tanzanian port could serve as a gateway for countries such as Zambia, Malawi, Burundi, and Zimbabwe.