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Dar es Salaam port: The key point of making Tanzania a Trade Hub

Dar es Salaam port: The key point of making Tanzania a Trade HubPhoto: The East African/The Port of Dar es Salaam is the principal port serving Tanzania and the port is one of three ocean ports in the country and handles over 90% of the country’s cargo traffic.

Dar es Salaam — Tanzania should open up its Dar es Salaam port to trudge cargo volume, expand and build new transport links to make Tanzania a regional hub while turning the country as Dubai of East Africa, the East African Business Week can report.

"The Dar es Salaam port is an engine for economic growth, if we invest in logistic centers, improve on infrastructure and create a facilitative environment, we can easily turn Dar es Salaam into another Dubai of its kind in East Africa," said Tanzania China Mining Association Chairman Superintended Andrew Huang.

The fifth phase government under Dr. John Pombe Magufuli has a chance to use effectively the Dar es Salaam port to increase 100% of the country source of revenue to foster the city to become a Dubai of the East Africa region.

Speaking to East African Business Week exclusively, Andrew Huang said the measures taken by President Magufuli have removed bureaucratic hurdles hence promote cargo volumes from neighboring countries and abroad.

He said it is easy to attract all large investors and make Dar es Salaam a huge financial center by allowing and encouraging colossal banks to invest and conduct financial business and market in the country.

Huang noted the city of Dar es Salaam deserved to have well-constructed roads, railways to the central line, buildings, malls and fast track it as a satellite city ready for massive investment from international business people.

Tanzania, just like its neighbor Kenya, wants to capitalize on a long coastline and upgrade existing rickety railways and roads to serve growing economies in the land-locked heart of Africa from Uganda on its north border to Malawi in the south.

But for sometimes the pace of progress had been held back by red tape, while experts said existing transport links were crumbling or inefficient, including the Dar es Salam port where vessels often wait days to dock, driving up costs to importers.

Three years ago, Tanzania signed a framework deal with China Merchants Holdings (International) Co (0144.HK) to build a new port, special economic zone and railway network that could involve more than $10 billion (Tsh.22 trillion).

The Port of Dar es Salaam is the principal port serving Tanzania and the port is one of three ocean ports in the country and handles over 90% of the country's cargo traffic.

According to the International Association of Ports and Harbors, it is the fourth largest port on the African continent's Indian Ocean coastline after Durban, Mombasa and Maputo.

The port acts as a gateway for commerce and trade for Tanzania and numerous bordering landlocked states and for years the inefficiencies at the port has cost the regional economy millions of dollars; in 2012 the total global welfare loss caused by the inefficiencies of the port stood at $1.8 billion for the Tanzanian economy and $830 million for the neighboring countries.

Tanzania's largest commercial city Dar es Salaam one of the fastest-growing in Africa has redrawn its master plan to try to become a megacity prepared for climate change, and not a city of worsening urban sprawl and flooding.

The plan, which looks ahead to 2036, aims to transform the city of over 4.5 million people and proposes creation of a Metropolitan Development Authority to oversee planning and major infrastructure development, including transportation and utilities.
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