Confusion over East Africa’s China-backed mega port at Bagamoyo
The future of East Africa’s biggest port project, Bagamoyo in Tanzania, was thrown into confusion last week after a government minister said the $11bn scheme would be suspended, only to be contradicted by his government the following day.
Minister for works, transport and communications Prof Makame Mbarawa told local media on 7 January that work on the port, backed by China and Oman, would be suspended because it was too big, complex and needed a major source of funding.
He said attention would be diverted from Bagamoyo to upgrading existing ports at Dar es Salaam (city pictured) and Mtwara Port.
But the next day the government of Tanzania issued a statement saying preparatory work begun in October 2015 would continue, and that construction of the port would begin in July upon conclusion of financing negotiations with key partners.
The statement added that a joint working team comprising technical people from Tanzania, China and Oman is preparing technical and commercial contracts for the implementation of the port, reported Tanzanian newspaper, The Citizen.
Work started in October 2015 on the megaport which was to be funded in part by China and Oman. www.hellenicshipp...
Tanzania starts work on $10 bln port project backed by China and Oman
Tanzania started construction work on a $10 billion port and special economic zone, a project backed by China and Oman that aims to transform the East African country into a regional trade and transport hub.
The port, which will be Tanzania’s biggest, is being built at Bagamoyo, 75 km (47 miles) north of Dar es Salaam – the commercial capital that is currently the site of the country’s main port, which is operating beyond its capacity with limited space for expansion.
President Jakaya Kikwete attended a groundbreaking ceremony and said construction of phase I of the project would take three years. “The construction of the Bagamoyo port and a special economic zone is aimed at realising the government’s goal of bringing about an industrial revolution in Tanzania,” he said.
Government officials said the port would be able to handle mega-ships – with a container vessel size of 8,000 twenty-foot equivalent units (TEUs) – after the first phase was completed, with room for expansion.
The whole project including roads, railways and the economic zone is expected to take 10 years to complete, but it was unclear in how many phases it will be carried out.
The project is financially backed by China Merchants Holdings (International), China’s largest port operator, and Oman’s State General Reserve Fund. The Chinese firm will handle much of the construction work.
Tanzania is East Africa’s second-biggest economy after Kenya, and cargo volumes at the existing Dar es Salaam port are expected to rise as much as 25 percent this year to 18 million tonnes. www.hellenicshipp...
Civil works have started on the $593 million upgrade of Dar es Salaam port involving financing by both bilateral and multilateral donors and overseen by TradeMark East Africa, the non-profit consultancy. Last week saw the demolition of sheds two and three at the port and is part of the Dar es Salaam Maritime Gateway Project (DMGP). This is expected to improve the physical capacity of infrastructure and operational efficiency. On completion port capacity will double to 28 million tonnes by 2020. Dongier said the total cost is envisaged to be $596 million, including an IBRD Enclave loan of up to $400 million, the first of its kind in the Africa region, a prospective grant of $136 million from DFID (£85 million equivalent), and committed and pipeline support from TMEA in the sum of $60 million (£38 million equivalent), excluding the complementary private investment in the port.
A PRIVATE cargo handling and logistics company, DSM Corridor Group Limited, plans to open its dry port in Kisarawe District, Coast Region later this year.
DSM Corridor Group Chief Executive Officer, Mr Erik Kok, told the ‘Daily News’ yesterday that his company wants to escape from the traffic congested Dar es Salaam port to Kibaha to reduce costs.
“By taking cargo to Kisarawe dry port and then through Kibaha by trucks will reduce time and costs compared to the current route,” said Mr Kok whose firm handled over 1.6 million tonnes of cargo last year, which is over 10 per cent of the 14 million tonnes handled by Dar es Salaam port.
Mr Kok said DSM Corridor Group is in talks with Tanzania Zambia Railways Authority (Tazara) to get a deal that will enable cargo from Kisarawe to be shipped to DR Congo, Malawi and Zambia to reduce freight charges.
Tazara which has capacity of transporting some five million tonnes of cargo per annum, currently only handles less than 400,000 tonnes due to poor infrastructure and mismanagement.
The DSM Corridor deal will enable the cash strapped international railway company improve its books of accounts. The DSM Corridor Group CEO said last year, they used Tazara to ship copper from Zambia to Dar es Salaam port which went smoothly. www.m.dailynews.c...
The government plans to make the USD11bn Bagamoyo Mega port project, slated to have its foundation stone laid in July this year, the region's biggest port that will serve as the engine of Africa's economic boom.
The Chinese-backed project would dwarf Kenya's port at Mombasa, east Africa's trade gateway some 300 km (180 miles) to the north, and include an industrial zone and rail and road links to capitalise on growth in a region hoping to exploit new oil and gas finds.
"It will be the engine for economic activity not only for Bagamoyo but for the entire region," said district executive Ibrahim Matovu, speaking from offices overlooking beaches where ship-builders hammer out wooden dhows as they have for centuries.
In its heyday, Bagamayo was a gateway to the heart of Africa for colonisers, with trade goods surging in from the Indian Ocean, and timber, ivory and countless slaves exported from the east coast harbour.
Then Bagamoyo, which looks out towards the island of Zanzibar, fell on lean times for more than a century now.
Many doubt the plan can succeed and ask if Bagamoyo is even the right location for a port, given it is just 75 km (50 miles) up the coast from Dar es Salaam and far from gas deposits off Tanzania's southern coast. Politics also plays a role. More at www.ippmedia.com/...
Tanzania's Dar es Salaam Port has got ready to welcome large container vessels including MSC Martina, one of the largest container vessels.
Tanzania Ports Authority (TPA) has informed that the adequate improvements have enabled to dock such large vessels at the country's major port.
The Mediterranean Shipping Company's container vessel with an overall length of 244 meters and width of 32.2 meters and carrying capacity of 2,411 containers docked without any problem, said Madeni Kipande, Acting Director General, TPA.
Kipande explained that the MSC Martina is one of the largest container ships owned by the Geneva-based Italian Company to dock and offload consignment at the port. The arrival of such large vessels is a major achievement to be recorded by the Tanzania Ports Authority, he noted.
The largest ship to be accommodated by the Port was Maersk Cubango with an overall length of 250 meters and width of 38 meters with capacity to carry 4,500 containers owned by the Maersk Line. www.marinelink.co...
Trade Mark East Africa (TMEA) has come up in support for the big result now (BRN) to increase Dar es Salaam Port efficiency in the next three years.
TMEA has set aside over 60 million US dollars (102bn/-) to increase efficiency that would see, among other things, reduction by almost half from nine to four days of container dwelling time.
TMEA Tanzania Country Director, Dr Josaphat Kweka, said they were working hand in hand with the government to raise competitiveness at Dar port under BRN.
“We have taken some key points under BRN to increase Dar port competitiveness and working on them,” Dr Kweka said during the launch of logistic innovation for trade (LIFT) fund.
The country representative said the idea was to support the government initiative on increasing efficiency in the next three years under BRN.
Some areas which TMEA will support BRN are port logistic and infrastructures, operating system and port effectiveness.
Tanzania says construction of China-funded port at Bagamoyo to start in 2015
Construction of a Chinese-funded port and special economic zone in Tanzania worth at least $10 billion will start in July 2015, the president’s office said in a statement on Monday, for the first time setting a start date for the delayed initiative.
Tanzania aims to build a huge port at Bagamoyo, 75 km (47 miles) north of commercial capital Dar es Salaam, the site of the country’s main port, where shippers complain of congestion and inefficiencies.
A construction agreement for the port and associated zone was signed on Sunday and follows a framework deal signed last year. An official said a start date for building work had taken time to set because of other negotiations about infrastructure to link the port to national transport networks.
The planned Bagamoyo port, new investment in Dar es Salaam and other spending on roads and railways are part of Tanzania’s efforts to become a transport hub that could challenge the dominance of Mombasa in neighbouring Kenya
CARGO clearance at the Dar es Salaam port is set to improve further after the arrival of seven heavy duty cranes for the Tanzania International Container Terminal Services (TICTS).
The new heavy-duty equipment include two SSG (Ship to Shore Gantry) and seven RTG (Rubber-Tyred Gantry) cranes according to a statement by Inchcape Shipping Services (ISS) which acted as port and discharging agent for the order.
TICTS placed a $20 million order for five cranes with a Shanghai-based Zhenhua Heavy Industry Co., Ltd. (ZPMC) last year for delivery in the fourth quarter of 2014.
The equipment will have the ability to handle vessels with containers stacked 13 rows across and have a lifting capacity of 41 tonnes, said TICTS, which is a member of Hutchison Port Holdings (HPH).
The operator further said the hybrid RTGs would help optimise energy use, reducing both fuel costs and the terminal’s carbon footprint.
Tanzania receives $565 mln financing to expand port
Tanzania signed a $565 million deal with the World Bank and other development partners to expand its main port of Dar es Salaam, part of plans to boost the east African nation’s role as a regional trade hub. Tanzania wants to lift capacity to 28 million tonnes a year by 2020 from the 14.6 million today.