Competition for port business has gone a notch higher in the East African coastal strip as cost and efficiency now threaten to snatch the pie from Kenya. This as Tanzania signed a multi-billion, long term modernisation project of the Port of Dar es Salaam with Dubai-based ports operator DP World to improve the port’s competitiveness. According to Dar es Salaam, the intention is to get a bigger share of the lucrative regional marine trade, currently controlled by the Port of Mombasa. On October 22 2030, Dar es Salaam inked a $250 million (Sh37.6 billion) 30 year concession agreement with DP World, for the later to operate and modernise the multi-purpose Dar es Salaam port, the largest in the country to improve its efficiency, competitiveness and trade opportunities for Tanzania and the region. While the port of Mombasa has been on top gear, due to its fairly modern facilities, earning it the moniker of the ‘Gateway to East Africa”, this position is gradually attracting the likes of Dar es Salaam, Djibouti and Somalia’s Berbera ports, according to the latest ranking by the World Bank’s Container Port Performance Index (CPPI) released in June this year. CPPI ranking favours Dar The CPPI rankings say that the Port of Dar es Salaam leapfrog Mombasa, which recorded a dramatic drop from position 296 in 2021 to 326 in 2022, below the port of Dar es Salaam which improved its CPPI rankings from 361 to 312 out of 348 in the review period. Though a long...
Cost, efficiency to determine future of EAC ports business
Posted on: November 3, 2023
Posted on: November 3, 2023