Tanzania reveals milestones at Dar es Salaam port after partnership with DP World

Dar es Salaam. Tanzanian government has revealed financial and operational milestones achieved at the port of Dar es Salaam, including to cut vessel waiting time by about 85 percent, as a result of the partnership with DP World.

The government, through the Tanzania Ports Authority (TPA), signed three agreements with DP World in October 2023, for the Dubai-based logistics giant to facilitate the operation of various port activities, including handling containers, general cargo, chemicals and vehicle shipments.

To comply with the local laws, DP World established a Tanzanian company called DP World Dar es Salaam which was officially handed over the port operations on April 15, 2024.

Speaking to Parliament on Friday November 1, 2024, the Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, described the improvements as “unprecedented in the port’s history,” crediting both DP World’s commitment and the government’s resilience in the face of initial criticism.

According to him, in the five-month period from April to September 2024, since the company began operating berths 0-7 at the Port of Dar es Salaam, the government has collected a total of Sh325.3 billion, from land rent, royalties and wharfage fees.

He said the funds are now being reinvested in infrastructure projects such as the Mgao Port in Mtwara and a new oil unloading station.

“The ongoing upgrades at the Port of Dar es Salaam, following its transfer to DP World and other operators, have shown significant economic benefits, driving increased trade and improving Tanzania’s business and investment climate. This investment forms a central part of the government’s vision to establish the Port of Dar es Salaam as a primary cargo gateway for the African region,” said Prof Mkumbo.

Under the agreement, DP World promised to invest $250 million (about Sh675 billion) over five years but Prof Mkumbo said, in just five months, the company has already invested Sh214.4 billion, or 31 percent of the commitment.

The funds have been channelled into upgrading equipment, refurbishing old machinery, and implementing a modern IT system to enhance port operations.

Another standout achievements, Prof Mkumbo noted, is the drastic reduction in vessel wait times which have reduced from an average of 46 days in May this year to seven days in September.

“This improvement speaks volumes about the power of modernised infrastructure,” he told the Parliament.

The efficiencies at Dar es Salaam Port have also led to record-breaking increases in container throughput. As of September this year, the port was handling 27,000 containers or Twenty-Foot Equivalent Units (TEUs) per month –far surpassing the previous peak of 15,000 TEUs.

He said the number of containers averaged 12,000 per month before the entry of DP World.

“These milestones demonstrate that Dar es Salaam Port can be a true logistics powerhouse, not only for Tanzania but for the East African region,” said Prof Mkumbo.

The deal with DP World was citicised by opposition politicians, activists and religious clerics who said it would pose a threat to Tanzanian sovereignty and security, but the government argued it will improve efficiency, cut costs and increase revenues.

Prof Mkumbo acknowledged the initial controversy surrounding the DP World partnership, saying, “President Samia Suluhu Hassan stood firm against intense opposition, showing the steadfast leadership needed to see this vision through.”

“This project is not just about boosting port efficiency; it’s about enhancing Tanzania’s standing in the global economy,” he said.