THE government has signed memorandums of understanding (MoU) for initial plans for the Bagamoyo port project with companies from China, Egypt and recently Saudi Arabia, the port authorities affirm.

Plasduce Mbossa, the Tanzania Ports Authority (TPA) general manager, made this affirmation when speaking to journalists here yesterday port sector activities in the past four years, noting that MoUs entered with those firms do not yet cover port construction proper but preliminary activities.

Various companies have expressed interest in the port development project for Bagamoyo and the government is working on how to develop the port.

Due to the project’s importance the government is not ready to rush into agreement with investors on the modality of the project, he said, explaining that the government is reviewing the 2010 plan on the Bagamoyo port development.

It will then provide information on the way forward, he said, partly in reaction to discounted reports on the Kingdom of Saudi Arabia recently announcing its ‘acquisition’ of Bagamoyo Port as part of its East Gate project.

The Saudi project aimed at enhancing the southern reaches of the kingdom as a global trade hub, observers noted, asserting that Bagamoyo Port is among the more important ports in East Africa. The Bagamoyo port project area extends over 800 hectares, making it one of the largest maritime projects in the region the notice affirmed, elaborating that the port will be able to accommodate 20m containers annually upon completion.

That would make it a strong competitor to major ports in the region, notably Mombasa and Dar es Salaam, meanwhile as plenty of investment is being sunk into Dar port as main anchor or transportation hub for several landlocked countries.

The Saudi project similar to the 2010 plan related to the wish to develop Bagamoyo Port into a regional hub for African, Asian and European markets as it is tied to special economic zone investment opportunities.

It is expected that this will be provided to Saudi companies as regards maritime transport, logistics, energy and mining, the memorandum indicates affirming that construction is scheduled to start in stages during the next financial year.

The port management says that the project is a vital component of current development strategies, with TPA handed 22bn/- for early phases of construction, with a focus on deep water berths to handle larger ships that the Dar es Salaam port wasn’t handling until recently, or isn’t berthing yet.

TPA says that upon completion, the Bagamoyo Port will alleviate pressure on Dar es Salaam Port, as local and regional trade grows unabated.