DP World pens 30-year concession to operate Dar Es Salaam Port

Dubai-based port operator DP World has signed a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate and modernize the multi-purpose Dar es Salaam Port.

The concession was awarded with the primary objective of optimizing the port’s operations to improve transport and logistics services throughout Tanzania and its hinterland.

This is the first phase of a multi-phase investment plan. DP World will initially invest more than $250 million to upgrade the port and the investment could increase to $1 billion during the concession period, alongside hinterland logistics projects.

DP World revealed it would work with the TPA alongside the port’s existing stakeholders to facilitate faster cargo clearing and improved cargo planning in order to strengthen Dar es Salaam’s critical role as the maritime gateway for green energy metals from the copper belt in Southern-Central Africa.

Improved efficiency will attract more shipping lines and bigger ships into Dar es Salaam, the port operator said, adding that this will ultimately lead to lower ocean freight costs for Tanzanian importers and exporters. 

DP World plans to invest in temperature-controlled storage to enhance Tanzania’s agricultural sector, as well as greater connections to rail-linked logistics. Investments are also being considered in the future development of a special economic zone together with the broader port’s logistics sector, which will increase Tanzania’s role and influence on the future of global trade. 

“We are honored to partner with the Government of Tanzania to revitalize the port of Dar es Salaam,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, 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. Alongside other ports that we operate, this concession agreement marks another milestone in our collective efforts to leverage DP World’s global and local expertise to enhance the region’s supply chain to support the economic growth of the entire continent.”

“The signing of the concession agreement between the Government of Tanzania and DP World is a momentous event indeed, as it marks yet another significant breakthrough in building best-in-class infrastructure in Tanzania under the Public-Private Partnership model,” Professor Makame Mbarawa, Tanzania’s Minister of Transport, said.

“With DP World’s expertise, the port will play an important role in supporting the creation of direct and indirect employment in various sectors such as transportation, distribution, and supply chain. Importantly, the Tanzania Ports Authority will be a shareholder of the port concessionaire, and there will be no job losses for employees at the port authority.”

Plasduce Mkeli Mbossa, Director General of Tanzania Ports Authority expects the project to create significant value for end-users and help the government achieve its goal of reducing logistics costs by driving large-scale infrastructure development.