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Zambia signs US $147m deal for development of a dry port

The government of Zambia has signed a US US $147m deal with Africa Inland Container Depot (AFICD) of Tanzania for the establishment of a dry port in the central town of Kapiri Mposhi. According to the signed agreement, the port will be an integrated logistics and industrial hub that will provide services to clients across eastern, central and southern Africa thereby increasing regional market access for Zambian products.

Dry port project

The project will be built on a Build-Lease-Transfer (BLT), Public-Private-Partnership (PPP) model. The area where the Kapiri Mposhi Dry Port is earmarked for is located on the northern side of New Kapiri Mposhi Railway station, measuring approximately 4.3756 hectares (10.81 acres), with an already installed gantry crane of 36mt lifting capacity.

CEO of the IDC Mateyo Kaluba said that construction will be done in two phases. Phase one will involve construction of the dry port while the second phase will see an establishment of a multi-facility economic zone.

Also Read:Nigeria to construct a US $99.7m dry port in Ibadan

Share holders

The Industrial Development Corporation (IDC), the investment arm of the Zambian government, will hold 15% of shares in the project while the Tanzanian firm, Tanzania-Zambia Railway Authority (TAZARA) will hold 85%. The Dar es Salaam Corridor Group (DCG) will take hold of the four-hectare piece of land, construct the Dry Port, operate (lease) it for 25 years and, thereafter, transfer all the immovable assets to TAZARA.

Approximately 500 jobs will be created during construction and up to 3,000 direct and indirect jobs will be created when the dry port becomes operational. “This is a significant development, being one of the first PPP models to be introduced under our strategic vision of engaging the private sector in the full utilisation of TAZARA’s huge idle capacity,” said TAZARA Managing Director, Eng. Bruno Ching’andu.

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