The long awaited Bagamoyo Port project in Tanzania, will revolutionalise Tanzania and the region’s trade structure and connectivity. Estimates show that construction will start in phases during the financial year 2024/2025. Government see the port as one of the essential pillars of Tanzania’s development blueprint. Tanzania government through the Tanzania Ports Authority TPA has budgeted TZS 22 billion to fund the start up of the initial phases with emphasis on development of deep water berths as a way of handling bigger vessels that the Dar es Salaam port is unable to handle.
Project overview
The project, which includes phase one of the BSEZ, proposed in 2013 when CMHI and the Oman State General Reserve Fund signed a deal on the project. This is an aspect of the Tanzanian Mini Tiger Plan 2020, which was an aspiration for the country to become the logistics center in East Africa. The port that is about 60 kilometers north of Dar es Salaam, expected to effectively accommodate ships which require at least 17-meter depth which gives it the capacity to accommodate vessels with a capacity of between 12,000 to 25,000 containers than the current maximum of Dar es Salaam port’s 8,000 containers.
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Despite hopeful outlook, the project has encountered some setbacks. Previously under the administration of the late former President John Magufuli, the project was put on hold following what was considered to be unfavourable conditions of the initial deal. However, after the election of the new president Samia Suluhu Hassan negotiation was reopened and currently the project is again in the highlight of the development agenda in the country.
Significance
Upon the completion of construction the Bagamoyo Port will be useful in the planning out of crowed Dar es Salaam Port where majority of Tanzania import and export products pass through. This new facility will also aid in establishment of Tanzania as an important hub in regional commerce, and which is very strategic offering port services to nearby land locked countries like Uganda, Rwanda, Burundi, and the Democratic Republic of Congo.
In addition, the surrounding BSEZ will add value through being an industrial complex that will accommodate up to 760 production facilities when fully developed. Bagamoyo sea port, expected to increase Tanzania’s economic growth through increasing its GDP owing to the new developments and creating thousands of new Employment opportunities, hence the country’s industrialization.
The Tanzanian government has significantly advanced and almost cracked on procurement of the land and feasibility studies. Development will begin with the construction of two large berthing spaces, with other amenities built later in a gradual process depending on the level of patronage for port services received. At the present times, the TPA is about to tender for other private partners to participate in the project through joint venture mode.
Bagamoyo Port project is a giant leap for the Tanzania in achievement of its trade and economic plan. When completed the project will improve the connection across the region, enlarge carrying capacity by means of maximum transportation.
Project factsheet
Architect: China Merchants Holdings International and Oman’s State General Reserve Fund.
Constructor: Tanzania Ports Authority.
Start date: 2013.
Construction cost: $10 billion.
Location: Bagamoyo.
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