Dar es Salaam Port is yet to undergo a $1 billion investment to boost its logistics and infrastructure by global ports operator DP World. An agreement to run operations and modernize the port was reached as the firm pursues to expand its footprint in the continent of Africa and also boost supply chain in the region. During the first phase of the multi-phase investment plan, DP World shall make an initial capital investment of more than $250 million to carry out the construction works to upgrade the port as per the deal signed by the Tanzania Ports Authority and Dubai-based DP World.
DP World has set up plans of adding approximately three million Twenty-Foot Equivalent Units (TEUs) of container-handling capacity when the year ends in order to meet the increasing demand that is in the key trade markets. According to the maritime research and consulting services firm Drewry, the plan for expansion has come as global container throughput is foreseen to grow to approximately 932 million TEUs by the year 2025 from 858 million TEUs in the year 2021. During the month of March, DP World and the government of Somalia opened the new Berbera Economic Zone and also the Berbera Port which is foreseen to develop the region into a crucial trade hub that will be of service to the Horn of Africa.
The Dar es Salaam port is one that currently rivals East Africa’s deep-water primary port, the Mombasa Port which is currently undergoing an expansion. The port is gradually rolling out its $147 million project that will facilitate mitigating the congestion being experienced at the port. The recent cargo surge experienced by the port last year and this year has raised concerns. Because of this, many fear that the port may face massive congestion in the coming months. This comes amid the Kenya Ports Authority (KPA) management embarking on a new project, the construction of berth 19B. Last week, KPA received the first-ever conventional cargo vessel, Mv Van Melody, at the Lamu Port. The implementation of berth 19B, the expansion project, is one that will aim to solidify the port’s position. However, Tanzania is also ambitious about its port as it endeavors to ensure its successful expansion and operation.
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Dar es Salaam Port Investment by DP World
However, the period of concession the investment in Dar es Salaam Port is foreseen to hit $1 billion, which shall entail the potential investments in setting up temperature-controlled storage that will boost the agricultural sector and also connections to the logistics linked to rail. There will also be a future development of a special economic zone together with the broader logistics sector of the port.
According to the Minister of Transport in Tanzania, Makame Mbarawa, the expertise of DP World to the Dar es Salaam Port is going to play a crucial part in the support of generating quite a number of direct and indirect employment opportunities in the various sectors of transport, distribution, and supply chain in the country.
