DP World invests 214.42bn/- to boost efficiency at Dar Port – Daily News

DODOMA: DP World has made a significant initial investment of 214.42bn/- from January to December 2024 aimed at enhancing operations at the Dar es Salaam Port, with the goal of boosting efficiency and regional competitiveness.

In October 2023, the government of Tanzania, in collaboration with the Tanzania Ports Authority (TPA), signed three key agreements with DP World MEA PL & EZ FZE of the United Arab Emirates.

These include a host country agreement, a lease agreement, and an operational agreement. The move is part of a broader government strategy to transform the Dar es Salaam Port into a competitive regional and international trade hub.

Speaking with journalists in Dodoma today, the Tanzanian government Spokesperson and Permanent Secretary in the Ministry of Information, Culture, Arts and Sports, Gerson Msigwa, outlined the areas covered by the investment.

He revealed that eight new cargo-handling machines have been procured at a cost of 96bn/-, significantly improving container operations.

He said previously, TPA had only two such machines; with the upgrade, cargo handling capacity has now reached 100 percent, and long queues for container offloading have been eliminated.

Msigwa also said that DP World has purchased two ship-to-shore cranes for 115bn/-, 20 terminal tractors, and 31 container trailers to support intra-port cargo movement.

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In addition, the company has installed seven generators valued at 13bn/-to ensure a reliable power supply at the port.

“One of our major challenges has been outdated port systems,” said Msigwa.

” DP World is developing a modern ICT system to handle cargo efficiently. The first phase is complete and in use, with 3.1bn/- allocated for its operation.”

Looking ahead to 2025,  Msigwa outlined that the company plans to invest in two more cranes, build new entry and exit gates, and upgrade cargo storage areas as part of further port modernization efforts.

According to Msigwa, the port’s annual revenue has grown from 1.1tri/- to 1.5 tri/, compensation payouts have also increased by 49bn/-, a 36 percent rise from 280bn/-to 329bn/-.

“We’ve cut operating costs by nearly 500bn/- annually. Previously, most of the revenue collected, about 800 to 850bn/-was consumed by operations. Today, with the private sector investing in equipment, the country is beginning to see real returns,” he added.

Notably, the average waiting time for vessels to dock has dropped dramatically from 30 days in 2023 to just six days this year.

Msigwa said this improvement has reduced shipping delays, which previously led to higher costs for Tanzanian consumers.

“At one point, shipping lines were avoiding Tanzania due to long wait times. That’s no longer the case. As a result, inflation is more stable, and the cost of doing business has gone down,” he noted.

Furthermore, Msigwa said, as of March 2025, 764 Tanzanians have secured direct employment with DP World, alongside many indirect jobs, including drivers and logistics personnel.

Shipping costs are also falling. Msigwa cited the Mediterranean Shipping Company (MSC), which has scrapped a 100 US dollars per container surcharge that was previously applied due to unloading delays.