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DP World signs 30-year concession to operate Dar Es Salaam Port in 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

Published: Sun 22 Oct 2023, 6:59 PM

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  • WAM

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Plasduce Mkeli Mbossa and Sultan Ahmed Bin Sulayem after signing the concession agreement. — Wam

Plasduce Mkeli Mbossa and Sultan Ahmed Bin Sulayem after signing the concession agreement. — Wam

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 agreement was signed on Sunday 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 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 phase of a multi-phase investment plan. 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 socioeconomic development, in terms of job creation and increased access to products and services, among other benefits.

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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.

The port has greatly benefitted from recent investments made by the Government of Tanzania to improve its infrastructure. DP World will work with the TPA alongside the port's existing stakeholders to build on this 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 will attract more shipping lines and bigger ships into Dar Es Salaam, which will ultimately lead to lower ocean freight costs for Tanzanian importers and exporters.

DP World will make future 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, which will increase Tanzania's role and influence on the future of global trade.

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Speaking on the occasion, Sultan Ahmed Bin Sulayem said: "We are honoured to partner with the Government of Tanzania to revitalise the port of Dar Es Salaam. This is in line with Tanzania's strategic development plans and is testament of the visionary leadership of Samia Suluhu Hassan. 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."

Professor Makame Mbarawa, Tanzania's Minister of Transport, said: "The signing of the concession agreement between the Government of Tanzania and DP World is a momentous event indeed, as it 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."

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."

DP World continues to make significant investments to realise its Africa strategy and growth ambitions, which aim to boost economic growth and uplift local communities and businesses through enabling trade and connecting markets to the global trade ecosystem.



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