By GMM News | 2024-06-07 | International Shipping News |

The massive transformation of the quayside at Tanzania’s greatest city is all set to shake up the trading patterns in East Africa.

After DP World’s concession win in October 2023, a consortium headed by the largest port operator in India, Adani Ports, has also been given the nod to build a terminal at Dar es Salaam.

Adani has reportedly secured a 30-year concession to operate Dar’s Container Terminal 2, which comprises four berths and a yearly cargo handling capacity of 1 million TEU.

The Hutchison Ports earlier won the facility.

Last year, DP World reportedly signed a 30-year concession deal with the Tanzania Ports Authority (abbreviated as TPA) to operate and advance a portion of the port.

The two operators’ entry at the port of Dar comes during a time when the port’s competitiveness has been in a downward spiral.

Some strained facilities lead to perennial congestion and compelling shipping lines to opt for alternatives, with Mombasa port being the major beneficiary.

Dar es Salaam Port has a yearly capacity of 14.1 million tons for dry cargo and six million for bulk liquid cargo.

Considering that Dar can handle vessels with a max capacity of 8,000 containers, the TPA’s incapacity to handle large vessels has compelled it to invest in widening and deepening the gateway to berths one to seven.

In December 2023, the TPA completed the dredging of the entrance channel and turning the basin to the berths, meaning the port can now easily handle vessels with a beam of 32 meters and a draft of 13.5 meters.

Adani Ports and Special Economic Zone Ltd.’s wholly owned subsidiary, AIPH, is likely to invest in boosting the depth of berths 8–11 as part of the concession conditions.

Currently, 12 vessels or fewer can dock during a time, which poses challenges, particularly in the high season.

Adani declared that as part of the entry into Tanzania, the East Africa Gateway Limited (abbreviated as EAGL) has been incorporated as a joint venture of AD Ports Group, AIPH, and East Harbour Terminals Limited (EHTL).

Besides, APSEZ will be the critical controlling shareholder and consolidate EAGL on the books.

EAGL has stepped into a share purchase deal to acquire a 95% stake in Tanzania International Container Terminal Services Limited via Hutchison Port Holdings Ltd (and an affiliate named the Hutchison Port Investments Ltd) and Harbours Investment Limited for a whopping $39.5 million.

The TICTS owns the port-handling equipment and deploys manpower.Adani will operate CT2 via the TICTS.