Dubai to operate Tanzania’s largest port berths

On Sunday, Tanzania officially entered into agreements with DP World, a state-owned ports operator based in Dubai, to manage a section of the Dar es Salaam port for 30 years.

The deal had faced opposition from Tanzanian opposition parties and human rights organisations in the past.

Plasduce Mbossa, the Director General of the state-owned Tanzania Ports Authority (TPA), which currently oversees the port’s operations, has confirmed that DP World will assume a lease and operational role for four out of the 12 berths at Tanzania’s largest port.

The port of Dar es Salaam plays a crucial role in serving landlocked nations in both East and Southern Africa, including countries such as Uganda, Rwanda, Burundi, and the copper-producing Zambia.

According to Mbossa, the government has signed a Host Government Agreement (HGA) and lease and operational agreements with DP World to operate berths four to seven at the port, Reuters reported.

Also, the government is actively seeking other investors to take charge of berths eight through eleven.

“The contract has a 30-year limit and DP World’s performance will be evaluated after every five years,” Mbossa said.

He further explained that the collaboration with DP World will improve the effectiveness and efficiency of the port by reducing cargo clearance time and increasing the port’s capacity to process 130 vessels per month, a notable improvement compared to the current capacity of 90 vessels.

During the signing ceremony in the capital city of Dodoma, DP World’s Chairman and Chief Executive, Sultan Ahmed Bin Sulayem announced the company’s commitment to invest $250 million over the next five years.

The investment will primarily focus on upgrading the port’s infrastructure, with a specific emphasis on enhancing cargo clearing systems and eliminating delays. — Business Insider Africa