Tanzanian President Samia Suluhu Hassan signing deal with DP World. Photo credit DPWorld.
DAR ES SALAAM, Oct 22 (Reuters) – Tanzania on Sunday signed agreements with Dubai state-owned ports operator DP World to operate part of the Dar es Salaam port for 30 years, a deal that has previously been opposed by Tanzania opposition and rights groups.
Plasduce Mbossa, director general of state-owned Tanzania Ports Authority (TPA) which currently manages the port, said DP World will lease and operate four of the 12 berths at the country’s largest port.
Dar es Salaam also serves landlocked nations in east and southern Africa like Uganda, Rwanda, Burundi and copper producer Zambia.
He said the government signed a Host Government Agreement (HGA) and lease and operation agreements with DP World to operate berths four to seven at the port. The government is looking for other investors to operate berths eight to 11, he said.
“The contract has a 30 years limit and DP World performance will be evaluated after every five years,” Mbossa said.
He said the partnership with DP World will improve the effectiveness and efficiency of the port by reducing cargo clearance time and increasing port capacity to process 130 vessels per month compared with the current 90.
DP World’s Chairman and Chief Executive Sultan Ahmed Bin Sulayem said at the signing ceremony in the capital Dodoma that the company will invest $250 million over the next five years to upgrade the port, focusing on improving cargo clearing systems and eliminating delays.
“We will strengthen the port’s role as a maritime gateway for the copper belt and other important green energy minerals,” he said.
In June, parliament passed a resolution endorsing the bilateral agreement between Tanzania and Dubai emirate that paved the way for the specific agreements between Tanzania Ports Authority (TPA) and DP World.
However, the agreement sparked opposition from the public including the Catholic church, lawyers, activists and opposition politicians who said the terms favoured DP World and offered little benefit to Tanzania. President Samia Suluhu Hassan said her administration had considered all views during the negotiations with DP World.
(Editing by Elias Biryabarema and Hugh Lawson)
(c) Copyright Thomson Reuters 2023.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,436 members that receive our newsletter.
Have a news tip? Let us know.
Maritime industry consultancy Drewry flags potential challenges for the US East Coast ports due to the diversion of Baltimore’s container volumes combined with expected market growth in 2024. The Port...
By David Lawder (Reuters) – The catastrophic bridge collapse that closed the Port of Baltimore to ship traffic is unlikely to trigger a major new U.S. supply chain crisis or spike goods prices, due...
California’s San Pedro Bay ports have experienced one of their busiest February’s on record, continuing to outpace expectations as U.S. imports surge. The Port of Los Angeles, the nation’s busiest...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,436 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
