DP World has signed a 30 year concession agreement with the Tanzania Ports Authority (TPA) to operate and modernize the multi-purpose Dar es Salaam Port. The firm’s performance will be evaluated every five years.

The concession agreement was signed between Mr. Plasduce Mkeli Mbossa, Diretor General of TPA and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, in the presence of President Samia Suluhu Hassan.

According to the firm’s publication on its website, the concession to operate and modernize the Dar es Salaam Port was awarded to DP World with the primary objective of optimizing the Port’s operations to improve transport and logistics services throughout Tanzania and its hinterland. This is the first phase of the multi-phase investment plan. DP World will initially invest more than $250 Million to upgrade the port and the investment could increase to $1 billion during the concession period, alongside hinterland logistics projects.

According to TPA director the signed contracts include the Host Government Agreement, the lease and operation of berths 4 – 7, and the joint operation of berths 0 – 3 between TPA and DP World for commercial and governmental activities.

Tanzania and UAE signed a memorandum of understanding in February 2022 for DP World to run the port of Dar es Salaam, initially, before expanding to run other ports in the country. The MoU was followed by an inter-governmental agreement that was endorsed by parliament in June, 2023.

DP World is one of the biggest logistics firms globally, with port operations in the Horn and West of Africa.

This comes after a series of controversies and concerns aired by stakeholders since the government announced signing of the intergovernmental agreement earlier this year.