Tanzania officially signed agreements on Sunday with DP World, a state-owned port operator located in Dubai, to administer a sector of the Dar es Salaam port for the next 30 years.
The agreement has previously encountered resistance from Tanzanian opposition parties and human rights organizations.
Plasduce Mbossa, Director General of the state-owned Tanzania Ports Authority (TPA), which now supervises the port’s operations, has stated that DP World will lease and operate four of the port’s 12 berths.
Dar es Salaam’s port is critical in supporting landlocked nations in both East and Southern Africa, including Uganda, Rwanda, Burundi, and copper-producing Zambia.
According to Mbossa, the government has signed a Host Government Agreement (HGA), as well as lease and operational agreements with DP World, to operate berths four through seven at the port, according to Reuters.
In addition, the government is aggressively recruiting new investors to take over berths eight through eleven.
“The contract has a 30-year limit and DP World’s performance will be evaluated after every five years,” Mbossa said.
He went on to say that the collaboration with DP World will boost the port’s efficacy and efficiency by lowering cargo clearance time and increasing the port’s ability to process 130 boats per month, a significant increase from the existing capacity of 90 vessels.
DP World’s Chairman and Chief Executive, Sultan Ahmed Bin Sulayem, declared the company’s pledge to invest $250 million over the next five years during the signing event in the capital city of Dodoma.
The investment will primarily focus on improving the port’s infrastructure, with a particular emphasis on improving cargo clearing procedures and decreasing delays, all with the goal of streamlining the port’s operations.
“We will strengthen the port’s role as a maritime gateway for the copper belt and other important green energy minerals,” he said.
Tanzania’s parliament passed a resolution in June to support the bilateral agreement between Tanzania and the emirate of Dubai, which prepared the way for the specific agreements between Tanzania Ports Authority (TPA) and DP World.
The pact, however, aroused strong resistance from different elements of the public, including the Catholic church, legal professionals, activists, and members of opposition parties, who felt that the provisions of the agreement favored DP World while providing few benefits to Tanzania.
In response to these concerns, President Samia Suluhu Hassan stated that her administration had considered all perspectives and opinions during the DP World negotiations.