DP World has won a 30-year management and development concession for a greenfield, multi-purpose port in the Democratic Republic of the Congo (DRC), a statement from the Dubai-owned port operator said on Sunday.
The company will invest an initial $350 million to construct a 600-metre quay and a 25-hectare yard extension with a container capacity of 350,000 TEUs (twenty-foot equivalent units) and 1.5 million tons for general cargo.
According to the statement, contained in a stock exchange report, DP World will set up joint venture with the DRC government to manage and invest in the Atlantic Coast’s Port of Banana.
About 70 percent of the joint venture will be controlled by DP World with the government of the DRC retaining the remaining 30 percent, the statement added.
The deal also comes with an option to extend the concession for an additional 20 years.
Congo has long looked to develop a port along its less than 50 km (30 miles) of coastline to handle larger vessels than those that can reach its existing shallow ports up the Congo River.
Construction is expected to start this year and take two years to complete. A total project cost of over $1 billion, spread over four phases, will be dependent on market demand.