The World Bank has recently approved the US$ 345m loan meant for the expansion of a port in Dar es Salaam, Tanzania.
Richard Martin Humphreys, the World Bank’s lead transport economist confirmed the reports and said that this initiative will signify the start of an incremental process towards increasing the capacity of the port of Dar es Salaam and strengthening its economic role in the region.
“The project represents the start of an incremental process towards increasing the capacity of the port of Dar es Salaam and strengthening its economic role in the region,” Richard said in a statement.
According to the World Bank, the port handled approximately 14m tonnes in 2016; this is an increase from 10m in 2011, reflecting an average growth of 9% per year. Tanzania wants to lift its capacity to 28m tonnes a year by 2020.
The loan is the second batch to be approved this year by the bank for the expansion of the port. Tanzania received US$ 305m in January this year.
In June this year, the country also signed a US$ 154m contract with the State-run China Harbour Engineering Company (CHEC) to build a roll-on, roll-off (ro-ro) terminal to deepen and strengthen seven berths at the port.
Ongoing infrastructure investments at the port are expected to improve overall productivity and reduce waiting time to berth from 80 hours to 30 hours.
“Enhancing its operational potential will boost trade and reduce the current cost of US$200 to US$400 for each additional day of delay for a single consignment.
Dar es Salaam is vying with the port of Mombasa in Kenya to become the trade hub for landlocked neighbours such as Zambia, Rwanda, Malawi, Burundi, Uganda and the Democratic Republic of the Congo, but both ports are hobbled by congestion and inefficiency.