DP World to invest $1bn to upgrade Tanzanian port

Tanzania Ports Authority

Dubai’s DP World has signed a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate and modernise Dar es Salaam Port.

The deal aims to improve transport and logistics services throughout Tanzania and the wider East Africa region, according to the state-run Wam news agency.

DP World will invest more than $250 million in the first phase to upgrade the port. The total investment could increase to $1 billion during the concession period, alongside hinterland logistics projects.

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The port will connect to the sub-Saharan Africa hinterland through a network of roads, highways, railways, freight corridors and ports, supporting the growing demand for logistics solutions across the continent.

DP World will work to allow faster cargo clearing and improved cargo planning, strengthening Dar es Salaam’s role as the maritime gateway for green energy metals from the copper belt in Southern-Central Africa. It will also make future investments in building temperature-controlled storage and a special economic zone.

Makame Mbarawa, Tanzania’s minister of transport, said: “With DP World’s expertise, the port will play an important role in supporting the creation of direct and indirect employment in various sectors such as transportation, distribution and supply chain.”

DP World earlier signed an agreement with Indian port operator Jawaharlal Nehru Port Authority to invest INR200 billion ($2.4 billion) to develop a port in the Indian state of Maharashtra.

The company reported a drop in profits for the first six months of the year by almost 10 percent, despite revenues increasing by 14 percent.

Profit attributable to the UAE multinational logistics group in H1 was $651 million, down 9.7 percent compared to a record surplus of $721 million for the same period in 2022.