DP World and Angola sign 20-year concession agreement

27 January 2021 (Last Updated January 27th, 2021 15:49)

Dubai-based port operator DP World has signed a 20-year concession agreement with the Angolan Government to run the Multipurpose Terminal (MPT) at the Port of Luanda, Angola’s largest port.

DP World and Angola sign 20-year concession agreement
As per the agreement, DP World will invest nearly $190m over the period of 20 years. Credit: Alex Duffy/Unsplash.

Dubai-based port operator DP World has signed a 20-year concession agreement with the Angolan Government to run the Multipurpose Terminal (MPT) at the Port of Luanda, Angola’s largest port.

According to the agreement, DP World will invest nearly $190m over the stipulated period.

DP World was selected by an evaluation committee set up by the Angolan Transport Ministry as the preferred bidder after an international tender process.

The funds will be utilised for the restoration of the current infrastructure and acquisition of new equipment, which will enhance its efficiency and bring the port operations in line with global standards.

The modernisation project is expected to raise the terminal’s annual capacity to roughly 700,000 TEUs a year, reported Gulf Business.

Under the project, a modern port management system will also be installed and further training will be provided to the employees at the terminal.

Angola’s Minister of Transport Ricardo de Abreu was quoted by Gulf Business as saying: “Maintaining the jobs of workers assigned to the terminal, the implementation of a training and capacity building plan in different areas by the concessionaire, and the inclusion of middle and senior Angolan staff in its decision-making structure, are some of the other gains from this relationship that we greatly appreciate.”

The terminal at the Port of Luanda will be developed into the biggest facility of its kind in Angola.

With a pier of 610m, a depth of 12.5m and a yard of 23ha, the terminal can handle containers and general cargo.

This terminal will be the first seaport terminal on the western coast of southern Africa, which will be managed by DP World.

DP World group chairman and CEO Sultan Ahmed bin Sulayem was quoted by Gulf Business as saying: “Our entry into Angola and planned investment in the terminal, as outlined in the agreement, reflects our belief in the potential for further economic growth in the country.

“We look forward to playing our role in supporting the government to achieve its growth objectives through this key sector by leveraging our expertise, not just as a port operator, but also as a global provider of end-to-end logistics solutions.”

In December 2020, DP World agreed to invest nearly $1.1bn to build a deepwater port at Ndayane, Senegal.

The company signed an agreement with the Senegalese Government following detailed discussions in relation to the development of the new port.