$357m World Bank Funds to Improve Productivity of the Port of Dar es Salaam

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The Dar es Salaam Maritime Gateway Project (DSMGP) has received a $345 million credit and a $12 million grant from the World Bank to increase the capacity of the Port of Dar es Salaam in Tanzania.

The investment will increase the capacity of the Port to 25 million tons over the next seven years and reduce the waiting-to-berth time from 80 hours to 30 hours, translating to improved overall productivity.

Currently, the Port of Dar es Salaam has 11 berths, seven dedicated to general cargo including container, dry bulk, break bulk and RoRo operations; and four to container operations.

It has recorded an annual growth of nine per cent over the last five years with long-term projections suggesting its volumes could double from the current 14 million to 38 million by 2030.

“The Port of Dar es Salaam is vital for the economies of Tanzania and neighboring countries,” said Bella Bird, World Bank Country Director for Tanzania who also oversees Malawi, Burundi and Somalia. “Enhancing its operational potential will boost trade and job creation across the region, and reduce the current cost of $200-400 for each additional day of delay for a single consignment.”

The project will involve the physical infrastructure improvements featuring deepening and strengthening of the Port’s berths; construction of a new multipurpose berth at Gerezani Creek; the deepening and widening of the entrance channel and turning basin; and the improvement of rail linkages and platform in the Port.

It also includes an institutional strengthening component which will support the restructuring of Tanzania Ports Authority (TPA) and further develop its capacity to act as a landlord, manager, and developer of the ports in Tanzania and for future private sector participation in port operations.

The DSMGP is to be implemented as part of a larger ongoing investment program for the overall development of the Port of Dar es Salaam.

It is supported by several development partners comprising the Tanzanian Government which is contributing about $63 million through the Tanzania Ports Authority (TPA); regional trade lobby Trade Mark East Africa (TMEA) which is supporting improvements in the port’s current spatial and operational efficiency through the rehabilitation of access and egress roads and demolition and relocation of sheds; and the United Kingdom through its Department for International Development (DFID) which is contributing a $12 million grant.

The funding will further support capacity building programs in institutions like TPA’s vocational training facility Bandari College, the Dar Maritime Institute and the College of Engineering and Technology at the University of Dar es Salaam.

Engineer Deusdedit Kakoko, the Director General of the Tanzania Ports Authority said these improvements of the Port of Tanzania are long overdue adding, “We have been performing rather optimally yet under very difficult conditions.”

 

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