SINCE the Gulf port management firm DP World took over operations at the Dar es Salaam port container terminal, ship waiting times at anchor have dramatically decreased from an average of 46 days in May to just seven days, with zero waiting time for container ships and reduced waiting periods for bulk carriers and general cargo vessels.
This change was among numerous advantages gained in port operations since the shift, as Planning and Investment state minister Prof. Kitila Mkumbo explained in parliamentary remarks towards the end of last week.
He cited the introduction of advanced equipment, such as sea-to-shore gantry cranes (SSGs) and rubber-tyred gantry cranes (RTGs) as having significantly accelerated cargo handling operations.
As a result, the turnaround time for container ships has halved from seven days to three days while the number of ships waiting at anchor dropped from 35 in September 2023 to 15 one year later, he said.
As per the contract, DP World is committed to investing $250m (675bn/-) over a period of five years, whereas within the first five months, the firm had already invested 214.425bn/-, amounting to 31 percent of the total planned investment.
This initial investment was directed at modernising equipment and enhancing information technology (IT) systems for port management, he stated, recalling that on October 22 last year TPA signed three investment agreements with DP World.
The accords covered operations in container handling, general cargo, bulk cargo and vehicle cargo where the Dubai-based firm set up a local entity, DP World Dar es Salaam to oversee operations, starting its work on April 15.
The successful integration of customs systems, that is the Tanzania Customs Integrated System (TANCIS) and the Tanzania Electronic Single Window System (TeSWS) have streamlined operations, reduced redundancies and improved cargo clearance times, thus enhancing transparency and communications, he said.
As a result, tax revenue collected by the Tanzania Revenue Authority (TRA) reached 1trn/- in September 2024, up from an average of 850bn/- per month, underlining the marked efficiency gains in expedited cargo processing.
The minister was enthusiastic about achievements recorded at the port of Dar es Salaam since the Dubai-based logistics company began operations in April, vastly increasing cargo flows and revenues.
The Minister of State in the President’s Office made the remarks in the National Assembly when presenting the national development plan for 2025/26, affirming that notable advancements in efficiency, revenue generation and overall operations have been witnessed at the port.
Cargo handled at the port has increased from 141,889 tonnes in May 2024 to 168,336 tonnes by September, a 18.6 percent growth within five months, while the number of containers processed, measured in 20 foot equivalent units (TEUs), surged from an average of 12,000 per month to 27,000 five months later.
It was a new record for the port, surpassing the previous highest level of 15,000 containers, he remarked, noting that in the five months since DP World began operating berths 0-7, the government has collected 325.3bn/- in revenue arising from agreements with the Tanzania Ports Authority (TPA).
They relate to land rent, royalties and wharfage, he said, explaining that with increased revenue and reduced operational costs from the improvements made, the government has initiated investments valued at 1.922trn/-.
The projects include the construction of a single buoy mooring (SBM), a new port at Mgao Island in Mtwara, and dhow wharves in Dar es Salaam, he added.
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