World Bank OKs $345 Million Loan for Dar es Salaam Expansion

The capacity of the Port of Dar es Salaam will be increased to 25 million tons over the next seven years following the World Bank Board of Executive Directors’ approval of a $345 million credit and a $12 million grant to the new Dar es Salaam Maritime Gateway Project (DSMGP). 

DSMGP is to be implemented as part of a larger ongoing investment program for the overall development of the Port of Dar es Salaam with the support of several development partners.

The Government of Tanzania is contributing about $63 million through Tanzania Ports Authority, while TradeMark East Africa is supporting improvements in the spatial and operational efficiency of the port currently, through the rehabilitation of access and egress roads and demolition and relocation of sheds, the World Bank said in its latest release.

The United Kingdom through its Department for International Development (DFID) are also contributing a $12 million grant.

“The UK is committed to supporting Tanzania’s growth and helping to improve the lives of Tanzanians. We’ve been a committed partner to the Tanzanian Ports Authority over the last six years,” said Sarah Cooke, British High Commissioner. 

“As well as the $12m grant to the Dar es Salaam Maritime Gateway Project, DFID has funded 100 percent of the work Trademark East Africa has implemented in the port over recent years. We hope that these investments will help Tanzania take advantage of the opportunities that trade offers for future growth and prosperity.”

John Ulanga, TradeMark East Africa Country Director, added: “TradeMark East Africa commends the World Bank and the UK Government for providing this much needed investment to improve capacity and efficiency of the Port of Dar es Salaam. 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.”

The Port of Dar es Salaam currently has 11 berths, with seven of these dedicated to general cargo (including container, dry bulk, break bulk and RoRo operations) and four to container operations.

The port handled 13.8 million tons in 2016, up from 13.1 million tons in 2013, and 10.4 million tons in 2011, reflecting an average growth of 9 percent per year over the last five years.

While recent numbers indicated a slowdown, the respite is likely to be short lived as projections for the long term suggest the port’s volumes could double, from the current 14 million tons to 38 million tons by 2030, in an unconstrained scenario.