The container terminal behemoth DP World Ltd., based in Dubai, is currently negotiating with Tanzania to manage seven berths at Dar es Salaam’s main port. This move seeks to strengthen DP World’s presence along the East African coast, where it already has investments in Somalia, Eritrea, Djibouti, and Mozambique.
In order to become a regional trade and logistics hub, the Tanzanian government wants to improve the port’s efficiency and upgrade its transportation infrastructure. Mombasa, Kenya, is its main competitor to the north, as both ports compete for business from African countries such as the Democratic Republic of the Congo, Rwanda, Uganda, and Burundi, as well as serving as gateways for Zambia, Malawi, and Zimbabwe.
According to Works and Transport Minister Makame Mbarawa, in addition to securing the berth concession, DP World is expected to build cold storage facilities and invest in modern technology. The government has set lofty goals for DP World, aiming to triple revenue to 26.7 trillion shillings ($11.2 billion) within the next decade, up from 7.76 trillion shillings in 2021-22. Furthermore, by 2032-33, cargo traffic is expected to nearly double to 47.57 million tonnes.
The investment by DP World will be critical in reducing port congestion and significantly reducing average vessel stay from five days to 24 hours. Clearing times are also expected to be reduced from 12 hours to 60 minutes, resulting in significant operational efficiency improvements.
In addition to DP World, the Tanzanian government is considering proposals from Hutchison Port Holdings Trust in Hong Kong, Adani Ports and Special Economic Zone Ltd., the Port of Antwerp-Bruges, PSA International Ltd. in Singapore, and Danish shipping company AP Moller-Maersk A/S to manage other sections of the port.
Tanzania’s emphasis on developing its maritime infrastructure is consistent with the country’s larger strategy of becoming a key player in regional trade and transportation. The government intends to leverage the expertise and experience of established industry leaders such as DP World to drive economic growth and attract increased investment by partnering with them.
If the talks with DP World go well, it will not only strengthen Tanzania’s position in the region, but it will also provide DP World with a larger footprint on the East African coast, further solidifying its presence and influence in the African maritime sector.
