The Government of Tanzania has signed a 30-year arrangement with Emirati multinational logistics company DP World to modernize and upgrade tasks at the Dar es Salaam Port. The concession falls under endeavors to diminish cargo costs for Tanzanian shippers and exporters while supporting position creation and reinforcing the East African nation’s situation as a sea passage for efficient power energy.
The concession falls under efforts to reduce freight costs for Tanzanian importers and exporters while bolstering job creation and strengthening the East African country’s position as a maritime gateway for green energy.
Under the terms of the agreement, DP World will initially invest over $250 million to enhance and upgrade port infrastructure.
This investment could potentially increase to $1 billion over the next 30 years as projects such as road and associated infrastructure take shape.
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, stated that, “The development will deliver trade opportunities for the region, connecting East Africa and broader sub-Saharan Africa with global markets, driving economic growth, job creation, enhanced access to products and service, and creating value for all our stakeholders.”
The port upgrade will help facilitate the export of various products and services from Tanzania, including energy-related commodities. In addition to taking Tanzanian energy global, the port will serve as a gateway for Southern Africa’s critical minerals, facilitating the transportation of resources from the copper belt to international markets.
The Emirati company will work with the Tanzanian Port Authority to ensure faster cargo clearing and improved cargo planning while investing in modern freight infrastructure such as temperature-controlled storage facilities to improve Tanzania’s agricultural sector.
The revitalized port is expected to help Tanzania attract more shipping lines and larger ships into Dar es Salaam, enhancing the region’s supply chain and economic growth.