TANZANIA ANNOUNCES $421M PROJECT TO STRENGTHEN PORT OF DAR ES SALAAM INFRASTRUCTURE - FINANCIAL-24
In a bid to expand its share of regional trade, Tanzania is investing billions of shillings into a number of transport projects, including a multi-year upgrade of the country’s principal port, the Port of Dar es Salaam.
On July 2 President John Magufuli unveiled the Dar es Salaam Maritime Gateway Project (DSMGP), which aims to overhaul Port of Dar es Salaam’s infrastructure by 2023. The project, which according to the World Bank will cost approximately $421m, will see the construction of a new multi-purpose berth at Gerezani Creek, dredging of the port’s entrance channel, and intermodal improvements to both rail and road linkages.
The 11-berth port, which handled 13.8m tonnes of cargo last year, is expected to see its handling capacity more than double to 28m tonnes per year by 2020 as a result of the upgrades, while berth wait times will be reduced from 80 hours to 30.
The project is being financed in part by the World Bank, which has provided roughly $350m in loans and grants, while the bulk of the remainder – approximately $70m – is being provided by the Tanzania Ports Authority (TPA). The UK’s Department for International Development has also put forward grant assistance.
Increased port throughput makes expansion a priority
The need for the improvements is clear, with demand steadily increasing. The Port of Dar es Salaam has seen rising traffic over the past five years: between 2011 and 2016 throughput at the port jumped by 3.4m tonnes annually.
The pressure the increased traffic puts on the port’s infrastructure and intermodal connections is particularly notable, given that it currently handles roughly 95% of Tanzania’s external trade. Dar es Salaam’s capacity far outstrips that of the country’s next two largest ports, Tanga and Mtwara, which combined handle around 1m tonnes of traffic annually.
In order to improve the Port of Dar es Salaam’s operational efficiency, donor-funded trade initiative TradeMark East Africa is providing the TPA with technical support in the rehabilitation of access roads to help reduce traffic congestion.
On top of the expanded capacity, gains in efficiency – such as reduced wait times – will also have a significant impact: a World Bank report in 2014 found that inefficiencies at the port cost Tanzania and neighbouring countries up to $2.8bn in lost revenues annually.
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