TANZANIA has officially entered a 30-year partnership with DP World, the Dubai state-owned ports operator, to oversee a portion of the Dar es Salaam port. This agreement, previously met with opposition, paves the way for the efficient management of crucial port facilities in the region.
Plasduce Mbossa, the director-general of the state-owned Tanzania Ports Authority (TPA), responsible for the port’s current management, confirmed that DP World will lease and manage four out of the 12 berths at Dar es Salaam, the country’s largest port. The port also serves as a vital gateway for landlocked nations in East and Southern Africa, including Uganda, Rwanda, Burundi, and copper-producing Zambia.
The government finalised a Host Government Agreement (HGA) and lease and operation agreements with DP World, covering berths four to seven at the port. Plans are underway to seek additional investors for the operation of berths eight to eleven. Mbossa emphasised that the DP World’s performance would be evaluated every five years during the 30-year contract.
The collaboration with DP World is expected to enhance the port’s efficiency and effectiveness, reducing cargo clearance times and increasing the port’s capacity to handle 130 vessels per month, a notable improvement from the current 90.
During the signing ceremony in the capital city of Dodoma, DP World’s Chairman and Chief Executive, Sultan Ahmed Bin Sulayem, revealed the company’s commitment to invest $250 million over the next five years. This investment will primarily focus on upgrading port infrastructure, streamlining cargo clearance processes, and eliminating delays.
Bin Sulayem stressed that this partnership would reinforce the port’s role as a key maritime gateway, particularly for the copper belt and other vital green energy mineral exports.
While the agreement faced opposition from various quarters, including the Catholic church, lawyers, activists, and opposition politicians, President Samia Suluhu Hassan affirmed that her administration had taken all perspectives into account during negotiations with DP World. The deal is expected to enhance trade and infrastructure in the region and bring new opportunities for Tanzania’s development.
