RIYADH: The Dar es Salaam port in Tanzania will soon be modernized amid a 30-year concession agreement with the UAE’s logistics firm DP World Group.
Signed with the country’s ports authority, the deal aims to further improve operations at the multi-purpose facility and elevate transportation and logistics services in the African country, according to a statement.
This agreement will also facilitate the connection of Tanzania and the surrounding region to global markets.
“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 testament of the visionary leadership of H.E. Samia Suluhu Hassan,” noted DP World Group Chairman and CEO Sultan Ahmed bin Sulayem.
He added: “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.”
Furthermore, he noted that this concession agreement marks another milestone in the firm’s collective efforts to leverage DP World’s global and local expertise to bolster the region’s supply chain to support the economic growth of the entire continent.
Through the first phase of a multi-stage plan, DP World will initially invest more than $250 million to revamp the port. The investment volume may rise to $1 billion later during the concession period.
In return, this funding is projected to positively impact Tanzania’s socioeconomic development in terms of job creation and increased access to products and services, among other benefits.
“This project will create significant value for end-users and help the government achieve its goal of reducing logistics costs,” Director General of Tanzania Ports Authority Plasduce Mkeli Mbossa highlighted.
He added: “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.”
DP World is continuously exerting efforts in line with its Africa strategy, all of which seek to boost economic growth, local communities, and businesses through stimulating trade and connecting markets to the global ecosystem.
