Tanzania inked agreements on Sunday to manage a portion of the Dar es Salaam port for 30 years with Dubai state-owned ports operator DP World. Tanzanian opposition and rights organisations had previously criticised the arrangement.
Four out of the twelve berths at the nation’s main port will be leased and operated by DP World, according to Plasduce Mbossa, director general of the state-owned Tanzania Ports Authority (TPA), which now oversees the port.
In addition, landlocked countries in east and southern Africa such as Zambia, which produces copper, Rwanda, Burundi, and Uganda are served by Dar es Salaam.
He noted that in order to run berths from four to seven numbers at the port, the government negotiated leasing and operating agreements with DP World in addition to a host government agreement (HGA). The administration is trying to find additional financiers to work with. “The contract has a 30 years limit and DP World performance will be evaluated after every five years,” Mbossa said.
He said that the port will be more effective and efficient as a result of the relationship with DP World as it will take less time to clear cargo and have the potential to handle 130 boats per month as opposed to the existing 90.
During the signing event in the capital Dodoma, Sultan Ahmed Bin Sulayem, the chairman and CEO of DP World, said that the business will invest $250 million over the next five years to enhance the port, with an emphasis on enhancing cargo clearance procedures and removing delays. “We will strengthen the port’s role as a maritime gateway for the copper belt and other important green energy minerals,” he said.
The bilateral agreement between Tanzania and the Dubai emirate, which opened the door for the particular agreements between Tanzania Ports Authority (TPA) and DP World, was approved by parliament in June.
The Catholic church, attorneys, activists, and opposition politicians were among those who opposed the pact, arguing that its provisions privileged DP World and provided little advantage to Tanzania. During the talks with DP World, President Samia Suluhu Hassan stated that her administration has taken into account all points of view.
