Why Tanzania picked DP World for development of Dar port.

Why Tanzania picked DP World for development of Dar port.

On June 10, 2023, the Tanzanian government signed and approved the Intergovernmental Agreement (IGA) with Dubai to develop the Dar es Salaam Port. This agreement paved the way for further procedures, including the concession agreement, which would facilitate cooperation between the Tanzania Ports Authority (TPA) and DP World, a multinational logistics company based in Dubai, UAE.

According to Works and Transport Minister Makame Mbarawa, DP World will be given berths five to seven to handle at the port. The government expects that by working with DP World, they can significantly increase revenue collection through the port by 233.7 per cent over the next ten years. The goal is to raise the revenue collected from the current Sh7.79 trillion per year to Sh26 trillion in the next decade.

The partnership with DP World is seen as a potential game-changer, as the company’s approach is to remove trade barriers and create a trade ecosystem that enhances both intra-regional and global trade flows. With DP World’s involvement, the government anticipates improvements in the port’s performance, including a reduction in vessel discharge time from four to five days to just one day. This enhanced efficiency is expected to attract more businesses to the port and contribute to Tanzania’s overall economic development.

DP World’s selection was based on its proven track record of managing, operating, and investing in trade infrastructure in Africa for over two decades. The company is known for delivering to the highest international standards and is uniquely positioned to bring nationwide transformation across the logistics value chain.

Stakeholders, including the Tanzania Shipping Agents Association (TASAA) and Tanzania Freight Forwarders Association (TAFFA), have expressed confidence in DP World’s capabilities and believe the involvement of the private sector will lead to improved connectivity and the modernization of facilities at the port. This could create new job opportunities, boost revenue, and attract more businesses. Additionally, the investment is expected to stimulate economic diversification by attracting new sectors and businesses to the port.

DP World’s investment in Tanzania aims to modernize the port’s infrastructure by introducing advanced equipment, processes, and systems. The company also plans to use modern technology to enhance visibility, transparency, and speed up the transit of cargo across Tanzania ports, Inland Container Depots, and borders, ultimately improving the ease of doing business in the region.