Dubai-based logistics company DP World has entered into three agreements with the Tanzanian government on Sunday, securing a 30-year operation contract for a section of Dar es Salaam’s port under a contentious arrangement that encompasses all of the nation’s ports.
Under the new agreements, DP World obtains exclusive management rights for four out of the 12 moorings at the city’s docks and an additional four in collaboration with the Tanzania Port Authority.
TPA director general Plasduce Mbossa stated that the contracts will undergo a review every five years.
These signings come after an intergovernmental agreement signed in October of the previous year by President Samia Suluhu Hassan. This agreement paved the way for DP World to oversee all of Tanzania’s ports, in collaboration with the government.
It was ratified by parliament in June, sparking protest.
Opponents of the agreement argue that it jeopardizes Tanzanian sovereignty and security. However, the government contends that it will enhance efficiency, reduce expenses, and boost revenues.
DP World CEO Sultan Ahmed bin Sulayem stated that this move will enable the company to elevate Dar es Salaam port into a globally renowned facility, further solidifying its position as a significant logistics hub for Tanzania.
The Dubai government-controlled company has committed to investing $250 million over the upcoming five years in the port, which ranks among the largest on the African continent.
Amnesty International reports that since June, a minimum of two dozen individuals have been detained for their opposition to the agreement, though some of them have subsequently been released.
Lawyer Rugemeleza Nshala was one of the individuals who were released, but he revealed that he was compelled to leave the country in July due to intimidation and death threats.
“We have considered views by different groups before signing this deal” said President Hassan.
She assumed office in March 2021 following the demise of her autocratic predecessor, John Magufuli, and pledged to bring about greater political liberties.
‘Make the contract public’
However, her critics labeled her a “dictator” when Freeman Mbowe, the leader of the Chadema opposition party, was apprehended on terrorism charges in July 2021, only to be subsequently released.
Chadema was one of the parties objecting to the agreement that grants DP World exclusive negotiation rights for a year to discuss the optimal management approach for the country’s 80 ports with the government.
ACT-Wazalendo opposition party leader Zitto Kabwe and Tanzania’s Catholic church leader, Charles Kitima, had previously voiced their opposition to the agreement but were present at Sunday’s signing.
“Some of our proposals have been taken into account,” ACT-Wazalendo said in a statement. “But we are still insisting that the contract be made public.”
Back in June, Transport Minister Makame Mbarawa informed the parliament that DP World’s investment would enhance the efficiency of Tanzanian ports, making it possible for more ships to dock there.
“The cost of transit cargo will also drop by almost half,” he said.