Global logistics company DP World has signed a 30-year deal with the Tanzania Ports Authority to take over the operation and modernisation of four berths at the Dar es Salaam Port.

The agreement will see DP World invest more than $250m to upgrade the port through projects such as improving rail-linked logistics operations and installing temperature-controlled storage to support the local agricultural industry.

DP World Group chairman and CEO Sultan Ahmed bin Sulayem said the agreement marked a milestone in enhancing the supply chain infrastructure in East Africa and the surrounding regions.

Bin Sulayem said: “The development will deliver trade opportunities for the region, connecting East Africa and broader sub-Saharan Africa with global markets, driving economic growth, job creation, enhanced access to products and services and creating value for all our stakeholders.”

DP World’s $250m investment will mark the first phase of a wider investment plan. It could reach up to $1bn during the concession agreement period alongside hinterland logistics projects connecting the port to sub-Saharan Africa through dedicated freight corridors and a network of roads and railways.

Operation of the berths, numbers four to seven, will see DP World manage roll-on/roll-off bulk, general cargo and containers at the port, which is one of the vital trade connections for the landlocked countries in the East African and sub-Saharan regions.

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While the agreement spans 30 years, DP World’s performance will also be measured every five years to ensure the partnership delivers on its promise to improve operations at the port.

Professor Makame Mbarawa, minister of transport for Tanzania, described the agreement as a “momentous event”, saying: “With DP World’s expertise, the port will play an important role supporting the creation of direct and indirect employment in various sectors such as transportation, distribution and supply chain.

“Importantly, the Tanzania Ports Authority will be a shareholder of the port concessionaire and there will be no job losses for employees at the port authority.”

The agreement continues a successful year for the UAE-based logistics company, which has also expanded its operations in Indonesia and Brazil and created new partnerships in key countries like Turkey.