Multilines International is excited to share the latest developments in the logistics and cargo industry that directly impact our operations at the Dar es Salaam Port. The Tanzanian government has signed three pivotal investment and operation contracts with the Dubai-based DP World Company, aimed at revolutionizing the port’s efficiency and performance. These developments signify a significant milestone in our ongoing efforts to improve import and export logistics for our clients.
A New Era for Dar es Salaam Port:
The signing of these contracts, which occurred at Chamwino State House in Dodoma and was witnessed by President Samia Suluhu Hassan, is poised to bring a new era of efficiency and prosperity to the Dar es Salaam Port. The contracts include the Host Government Agreement (HGA), the lease and operation of berths 4-7, and the joint operation of berths 0-3. These agreements, which will have a duration of 30 years, represent a substantial step towards modernizing the port’s operations.
Enhanced Efficiency and Revenue Generation:
The partnership with DP World promises to streamline port operations, reduce document processing time, and ultimately enhance the services provided to ships and cargo. This improved efficiency is expected to attract more ships and cargo to pass through Dar es Salaam Port, stimulating growth in the logistics industry.
One significant change is that, previously, the government was using 90 percent of revenue collected from leased areas in port operations, retaining only 10 percent. With these new agreements in place, the government will now be able to keep more than 60 percent of all revenue, as all operating costs will be borne by DP World. This change is expected to lead to a substantial increase in government revenue and a reduction in operating costs.
Custom duties collected by the Tanzania Revenue Authority (TRA) will also be positively impacted by this development, as they will be based on the number of serviced ships. Projections show that this will result in a substantial increase in revenue collection, with expectations that revenue collected at the port will grow from Sh7.8 trillion in 2021/22 to Sh26 trillion by 2032.
Key Performance Indicators and Local Content:
In addition to these promising changes, the Tanzanian government will implement key performance indicators that DP World must meet to ensure the highest standards of service and efficiency. Moreover, Tanzanians will participate in this contract through relevant provisions such as the local content, ensuring that local talent and businesses are included in the port’s operations and development.
We are optimistic that these agreements will not only improve the logistics landscape at the Dar es Salaam Port but also benefit various sectors such as railways and roads due to the increased cargo traffic. It’s anticipated that the time spent transporting cargo from the Middle East will be significantly reduced from 30 days to 15 days, fostering a more efficient and attractive trade route for businesses and cargo.
Multilines International is committed to staying at the forefront of these developments and leveraging the opportunities that arise from this partnership. We are excited about the potential this holds for our clients and the logistics industry as a whole.