DP World in talks to expand coverage to Tanzania’s Dar es Salaam port

Image by WAM

Container terminal giant DP World is in talks with Tanzania to manage seven berths at the East African nation’s main port of Dar es Salaam.

If successful, the negotiations will expand the Dubai-based company’s reach on the east African coast, where it already has interests in nations including in Somalia, Eritrea, Djibouti and Mozambique.

Tanzania wants to improve efficiency at the port and upgrade its transport infrastructure in a bid to become a regional trade and logistics hub, Works and Transport Minister Makame Mbarawa told reporters in Dar es Salaam.

Its main rival is Kenya’s Mombasa port to the north and they compete for business from African states such as Democratic Republic of the Congo, Rwanda, Uganda and Burundi. Dar es Salaam also serves as a gateway for Zambia, Malawi and Zimbabwe.

DP World to build infrastructure

In addition to the concession for the berths, DP World is also expected to build cold storage facilities and invest in modern technology, Mbarawa said.

The government wants DP World to triple revenue from the facility to $11.2bn over the next decade, the minister said. It also expects cargo traffic to more than double to 47.57 million tons by 2032-33.

Fresh investment from DP World will help reduce congestion and slash the average stay for a vessel to 24 hours from five days, and speed up clearing times to 60 minutes from 12 hours, Mbarawa said.

The government is also studying proposals from other ports and logistics operators, including Hong Kong-based Hutchison Port Holdings Trust, Adani Ports and Special Economic Zone, Port of Antwerp-Bruges, Singapore’s PSA International and Danish shipping company AP Moller-Maersk to run other parts of the port, he said.