Dubai-Based DP World To Operate Tanzania’s Largest Port For 30 Years

By Jean Pierre Afadhali [caption id="attachment_109360" align="alignnone" width="2048"] Tanzanian President Samia Suluhu Hassan signing deal with DP World. Photo credit DPWorld.[/caption] Global ports operator DP World has signed a 30-year concession agreement with Tanzania to manage the Dar Es Salaam port in Tanzania, as it seeks to grow its presence in Africa and boost supply chain. The deal signed at last Sunday has recently sparked controversy when it was first announced over the lack of enough details as the East African country engaged in what appeared to be a crackdown on critics of the Dar Es Salam Port’s management agreements. Legal experts, opposition and the catholic church had opposed the deal citing gaps in the contract, but a Tanzanian court thrown out the case challenging the agreement. Tanzania’s president Samia Suluhu Hassan vehemently supported the agreement with DP World saying she would not enter in a deal that would not benefit her country. In the first phase of a multiphase investment plan, DP World will make an initial investment of over $250 million to upgrade the port as part of the agreement signed with the Tanzania Ports Authority, Dubai-based DP World said on Sunday. Various observers have said Initial deal announcement did not reveal crucial details which is said to have angered the public and some opinion leaders in the East African country. According to Tanzanian economist Beatrice Kimaro, the DP World agreement will create employment opportunities and Tanzania will also raise revenues.  They [ DP World] have mentioned that the revenue will increase from TZS 7.8 trillion up to TZS 26.5 trillion up to 2032, she said in a BBC interview. “People were asking and lamenting about these issues because it was not mentioned before,” explained the Tanzanian economist. “But through these three contacts people are aware of what is going on between the Tanzanian government and the DP World.” One of the issues the deal raised was about the fate of Tanzania Port Authority s staff after the new management takeover. Now, it has been reported that the Tanzania Ports Authority employees will be absorbed by DP World. According to media reports, during the concession period the investment could increase to $1 billion, which will include 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, the port operator said. “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,” said Sultan bin Sulayem, group chairman and chief executive of DP World. Dar es Salaam Port is a multipurpose port and DP World will handle roll-on/roll-off, bulk, general cargo and containers to “cater to future trade demand from Eastern and Southern Africa and connecting the region to global markets”. “As part of the project, Dar es Salaam port will be connected to the hinterland of sub-Saharan Africa through a network of roads, highways, railways and dedicated freight corridors and ports.” This will support the growing demand for logistics solutions across the continent and connecting businesses in the region to global markets, DP World said. Efficiency management  The port operator will also work with Tanzania Ports Authority to facilitate faster cargo handling and clearing, “strengthening Dar es Salaam’s critical role as the maritime gateway for green energy metals from the copper belt in Southern-Central Africa”. Through the agreement Tanzania hopes to increase port’s efficiency. Enhanced efficiency of the port will attract more shipping lines and bigger ships into Dar es Salaam, which will reduce freight costs for importers and exporters in Tanzania, DP World added. DP World is expected to work with Tanzania Ports Authority to facilitate faster cargo handling and clearing. DP World currently manages approximately 9 per cent of the world’s handling capacity and is among the top five global ports operators.