UAE multinational logistics company DP World has won a bid to operate part of Tanzania's Dar es Salaam port and will invest more than $250 million to upgrade its facilities, according to the enterprise's statement.
"We are honored to partner with the Government of Tanzania to revitalize the Port of Dar es Salaam. This is in line with Tanzania's strategic development plans and is a testament to the visionary leadership of [Tanzanian President] H.E. Samia Suluhu Hassan," said DP World Chairman Sultan Ahmed bin Sulayem.
He added that this cooperation will provide the East African region with trade opportunities with global markets and contribute to its economic development, creating jobs and increasing access to products and services.
In addition, during the concession period, the Dubai-based company said it could enhance the investment to $1 million. The enterprise has announced its plans to invest in various sectors, such as temperature-controlled storage, rail-linked logistics, and the development of a special economic zone.
"DP World will make future investments in modernizing the Port, including potential investments in temperature-controlled storage to enhance Tanzania’s agricultural sector, as well as greater connections to rail-linked logistics. Investments will also potentially include the future development of a special economic zone together with the broader Port’s logistics sector, which will increase Tanzania’s role and influence on the future of global trade," the statement read.
Moreover, according to the statement, Tanzania's Transport Minister Makame Mbarawa praised the concession agreement, calling it a "significant breakthrough in building best-in-class infrastructure."
"The signing of the concession agreement between the Government of Tanzania and DP World is a momentous event indeed, as it marks yet another significant breakthrough in building best-in-class infrastructure in Tanzania under the Public-Private Partnership model. With DP World's expertise, the port will play an important role supporting the creation of direct and indirect employment in various sectors such as transportation, distribution and supply chain," the minister highlighted.
In addition, Mbarawa emphasized that there will be no job losses for the workers at the port authority, as the Tanzania Ports Authority will retain a share in the port concessionaire.
The statement also added that the importance of the initiative was emphasized by the Director General of Tanzania Ports Authority Plasduce Mkeli Mbossa, who said that the partnership will provoke "large scale infrastructure development" and will let the country allocate funds to other key economic sectors.
"We are excited to collaborate with DP World to modernise the strategic port in Dar es Salaam. This project will create significant value for end-users and help the government achieve its goal of reducing logistics costs. This strategic initiative is a testament to our ability to drive large-scale infrastructure development by partnering with strategic players, which will allow the government to redirect funds to other critical areas of the economy for the benefit of the people of Tanzania," Mbossa underscored.
In June, Mbarawa said, the East African nation's government held talks with DP World to manage berths one through seven at the port, according to media reports. Mbarawa also revealed that the country's leader expects the company to increase revenues from the facility from $3.1 billion to $10.7 billion over the next decade, according to the report.
In addition, the transport minister highlighted that the average stay of a ship is expected to be reduced from five days to 24 hours as a result of the company's efforts to reduce congestion, the media said.
Apart from Tanzania, DP World operates ports in African states such as Angola, Djibouti, Egypt, Morocco, Mozambique, Senegal and Somaliland.
Nowadays, Abu Dhabi's influence in Africa is growing. The multinational law firm White & Case revealed in early August that over the past decade, the UAE has become the fourth-largest global investor on the continent, right behind China, the EU and the United States.