THE Tanzania Ports Authority (TPA) has reported a significant increase in revenue and cargo handling efficiency, thanks to infrastructure improvement and enhanced operational systems at the Dar es Salaam Port.

Since the ongoing upgrade of the port by Dubai-based logistics company-DP World , the Tanzania Revenue Authority (TRA) has been collecting an average of 1trn/- per month, up from 850bn/- during the same period before the private investor took over operations.

Government spokesperson and Permanent Secretary of the Ministry of Information, Culture, Arts, and Sports, Gerson Msigwa, revealed the results during a press conference on Thursday in Dar es Salaam. 

He highlighted DP World’s commitment to improving efficiency through the installation of modern cargo handling equipment and advanced Information Communication Technology (ICT) systems for monitoring operations.

Msigwa noted that the government’s goal is to raise monthly collections to 1.5 trillion shillings in the near future, with a long-term target exceeding that figure.

He also pointed out that the integration of the Tanzania Customs Integrated System (TANCIS) with the Tanzania Electronic Single Window System (TeSWS) has streamlined cargo clearance, reducing delays for customers previously faced with fragmented systems.

The enhanced efficiency at Dar es Salaam Port has reduced its turnaround time from an average of 48 days to just seven days, significantly improving revenue collection. 

The reduction in turnaround time has also decreased the number of vessels waiting to be serviced, dropping from an average of 35 per month in September 2023 to just 15 in September 2024.

“The ongoing upgrade of Dar es Salaam port, under DP World’s investment and collaboration with other companies, is yielding significant economic benefits, including a boost in trade and an improved investment climate,” Msigwa said.

In the five months between April and September 2024, the government collected over 325 billion shillings in fees from activities such as land rent, royalties, and wharfage, as per the signed concession agreement between TPA and DP World.

Operational costs at the port have also decreased, with expenses now accounting for just 2.7 per cent of total revenue, down from 15.1 percent before DP World’s involvement.

From May to November 2024, cargo volumes handled at Dar es Salaam Port rose to 14.4 million tonnes, a 5.6 per cent increase from the same period in 2023. The number of containers handled also increased, with the port serving 598,672 Twenty-Foot Equivalent Units (TEUs), up 2 per cent from 597,613 TEUs in 2023.

The port has also seen a significant rise in transit cargo, reaching 6.3 million tonnes from May to November 2024, a 19.3 percent increase from the 5.3 million tonnes handled during the same period in 2023.

In October 2023, the Tanzania Revenue Authority (TPA) signed a 30-year concession agreement with DP World to modernize Dar es Salaam Port, with the goal of improving cargo handling efficiency. DP World officially began operations on April 25, 2024, managing berths four to seven and holding user rights for berths zero to three.

Msigwa emphasized that DP World continues to operate the port in accordance with the signed agreement and is committed to achieving the desired outcomes. 

The company has already invested over 214 billion shillings, or 31 percent of the total 675bn/-required for modernization, including the installation of new equipment and the renovation of existing ones over the next five years.

The Tanzanian government is also continuing upgrades at other ports, including Mtwara and Tanga, to attract more vessels and further enhance the country's logistics capacity.

For all ports combined, cargo handled from May to November 2024 reached 16.5 million tonnes, a 6 per cent increase from the 15.6 million tonnes handled during the same period in 2023. The total number of TEUs handled across all ports was 621,584, a 3.29 per cent increase from 601,805 TEUs in 2023.