Dubai-based logistics company DP World secured a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate and modernize the multi-purpose Dar es Salaam Port.
The agreement was formalized on 22nd October 2023 at the State House in the Tanzanian capital, Dodoma.
The primary goal of awarding the concession to DP World is to enhance the port’s operations, thereby improving transport and logistics services throughout Tanzania and its hinterland.
This initiative marks the beginning of a multi-phase investment plan. An initial investment exceeding USD 250 million is planned for port upgrades, which could escalate to USD 1 billion during the concession tenure, coupled with hinterland logistics projects.
The port is set to link the sub-Saharan African hinterland through an extensive network comprising roads, highways, railways, dedicated freight corridors, and ports.
This will cater to the rising demand for logistics solutions across the continent, connecting regional businesses to global markets, and will reinforce Dar es Salaam’s pivotal role as the maritime access point for green energy metals sourced from the copper belt in Southern-Central Africa.
Improved efficiency is expected to 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.
Future investments by DP World will focus on modernizing the port, including potential investments in temperature-controlled storage to enhance Tanzania’s agricultural sector, as well as greater connections to rail-linked logistics.
There’s also potential for the development of a special economic zone in conjunction with the broader port’s logistics sector, amplifying Tanzania’s influence on global trade.
Sultan Ahmed Bin Sulayem, the Group Chairman and CEO of DP World, commented on the partnership, highlighting the alignment with Tanzania’s strategic development goals. He emphasized the potential trade opportunities for the region, connecting East Africa and the broader sub-Saharan region to global markets.
For her part, Tanzania’s President Samia Suluhu Hassan stressed that the port investment agreements were formulated considering feedback from various societal groups, ensuring compliance with national laws and regulations.
She also highlighted that the agreements were a result of prior discussions with the Dubai Authority, which met the country’s requirements and aspirations, prioritizing national interests.
The three agreements signed include the Host Government Agreement, the Lease Agreement, and the Concession Agreement. These were executed in compliance with the Public Private Partnership Act Cap 103 and the Public Procurement Act No 5 of 2023.
In June 2022, the National Assembly approved the upscaling of the Intergovernmental Agreement (IGA) between Tanzania and Dubai to the implementation stage.
The decision followed extensive public consultations and debates in the Tanzanian parliament, and concerns and discussions took place since the announcement of the intergovernmental agreement.