Tanzania on Sunday signed a deal with Dubai's state-owned port operator DP World to operate part of the Dar es Salaam port for 30 years, a deal that had been opposed by Tanzanian opposition and rights groups.
DP World will lease and operate four of the 12 berths at the country's largest port, said Plasduce Mbossa, director of the state-owned Tanzania Ports Authority, which currently manages the port.
Dar es Salaam also serves landlocked countries in East and Southern Africa such as Uganda, Rwanda, Burundi and copper-producing Zambia.
He said that the government signed a host government agreement (HGA) and a lease and operating agreement with DP World to operate berths 4-7 of the port. He said the government was looking for other investors to operate berths 8 to 11.
"The contract has a 30-year term and DP World's performance will be evaluated after every five years," Mbossa said.
He said that the cooperation with DP World will reduce the time for cargo clearance and increase the port's processing capacity from the current 90 ships per month to 130 ships per month, thus improving the effectiveness and efficiency of the port.
DP World Chairman and CEO Sultan Ahmed Bin Sulayem said at the signing ceremony in the capital Dodoma that the company will invest US$250 million over the next five years to upgrade the port, focusing on improving the cargo clearing system and eliminating delays.
"We will strengthen the port's role as a maritime gateway to the Copperbelt and other important green energy minerals," he said.
In June, Parliament passed a resolution approving a bilateral agreement between Tanzania and the emirate of Dubai, paving the way for a concrete agreement between Tanzania Ports Authority and Dubai World
