World Bank approves $345m loan for Port of Dar es Salaam upgrades

The international financial institution approved a $345 million credit facility and a $12 million grant for the new Dar es Salaam Maritime Gateway Project in Tanzania.    The Port of Dar es Salaam’s capacity will increase to 25 million tons over the next seven years following the World Bank’s board of executive directors approving a $345 million credit and a $12 million grant to the new Dar es Salaam Maritime Gateway Project (DSMGP).
   Investments at the east African port will also improve waiting time to berth from 80 hours to 30 hours, according to the World Bank.
   The DSMGP involves:
     • Improvements to the physical infrastructure, including deepening and strengthening berths 1-11;
     • Construction of a new multi-purpose berth at Gerezani Creek;
     • Deepening and widening the entrance channel and turning basin;
     • And improving rail linkages and platforms at the port.
   The project is to be implemented as part of a larger ongoing investment program for the overall development of the port with the support of several development partners. The Tanzanian government is contributing around $63 million through Tanzania Ports Authority, while TradeMark East Africa, a not-for-profit organization, is currently supporting improvements in the spatial and operational efficiency of the port through the rehabilitation of access and egress roads, in addition to the demolition and relocation of sheds.
   In addition, the United Kingdom, through its Department for International Development (DFID), is contributing a $12 million grant.
   “Funded by the UK Government through DFID, TradeMark East Africa has implemented a number of interventions at the port over recent years, including port access roads, feasibility studies for berths 1-7, and the port’s dredging studies to prepare for this major investment,” said John Ulanga, TradeMark East Africa country director.
   Overall, throughput at the port has been on the rise over the years, increasing from 10.4 million tons in 2011 to 13.8 million tons in 2016.
   “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 Port of Dar es Salaam currently features seven berths for general cargo and four berths for container operations, World Bank said. According to ocean carrier schedule and capacity database BlueWater Reporting’s Port Dashboard tool, the port is called by nine liner services – six fully cellular container services, two pure car/truck carrier services, and one multi-purpose service.