DP World 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 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.
The concession agreement was signed by 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 Tanzania.
DP World will initially invest more than $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 socio-economic 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.
DP World partners for port efficiency
DP World will work with the TPA alongside the port’s existing stakeholders to build on the port’s recent 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 at the port is expected will attract more shipping lines and bigger ships into Dar es Salaam, leading to lower ocean freight costs for Tanzanian importers and exporters.
In a phased manner, DP World will make 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.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said the agreement with TPA 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,” he said.
Professor Makame Mbarawa, Tanzania’s Minister of Transport, said the signing of the concession agreement marks yet another significant breakthrough in building best-in-class infrastructure in Tanzania under the Public-Private Partnership model.
“With DP World’s expertise, the port will play an important role supporting the creation of direct and indirect employment in various sectors such as transportation, distribution and supply chain. Importantly, the Tanzania Ports Authority will be a shareholder of the port concessionaire, and there will be no job losses for employees at the port authority,” he said.
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