HomeNewsKurasini Trade and Logistic Center in Tanzania put on hold

Kurasini Trade and Logistic Center in Tanzania put on hold

The Kurasini Trade and Logistic Center project was recently dropped by the government in favor of expanding the congested Dar es Salaam port. The government issued a tender in August 2021. It was looking for qualified strategic investors to build the Kurasini Trade and Logistic Center project on a regular lease agreement.

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The project was meant to serve as a center for enhancing Tanzania’s important agricultural goods before export. It was not officially publicized by the government after that. The public was then kept in the dark about the project’s status.

The project’s commencement date

After a contract with Suma JKT was signed, the first phase, commenced in September 2021 at a cost of Sh30 billion. The first phase involved erecting a fence and infrastructure.

Exaud Kigahe, the deputy minister for investment, trade, and industry, however, said that the project had not been abandoned. He claimed that the project was shifted to the Kwala dry port in Kibaha, Coast Region. The shifting was meant to give the Dar port more breathing room.

According to him, once completed, the Kwala Industrial Parks project will attract more than 300 diverse industrial companies. Over 500,000 indirect jobs will also be generated as a result. This will be in addition to the over 300,000 direct jobs, said Mr. Kigahe.

He proceeded by adding that it is believed that the project, whose execution commenced last year, will become operational by next year. He said that the government is currently developing an enabling infrastructure in the parks. This aims to support a favorable business environment.

Assuming that Sino Tanzania Company is the custodian of the industrial parks, it is said that investors from any country may establish factories through Sino-Tan. Mr. Kigahe stated that investors have already begun showing a desire to set up factories at the Kwala Industrial Parks.

Why construction of the Kurasini Trade and Logistic Center stopped

According to him, if the government proceeded to build the Kurasini Trade and Logistics Center, the already congested Dar port would worsen.

According to Tanzania Ports Authority (TPA) data, cargo handled via the Dar es Salaam port rose by 21.4 percent in the previous four years.

The Dar port handled 17 million metric tons (MT) in 2021. This is an improvement from 14 million tons in 2017. The improvement came due to expanded capacity, marketing efforts, recovery from COVID-19, and also a supportive business environment.

The establishment of Kwala Industrial Parks near the Kwala Dry Port will help to relieve congestion at the Dar Port.

According to Mr. Chamle, the factories to be built will add value to the raw materials. The raw materials are of paramount importance in developing Tanzania’s economy.

He asked members of the business community to embrace the opportunities that are there in the Kwala Industrial Parks.

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