New developments in port construction projects in Tanzania and South Africa.
by Blue Africa News
The government of Tanzania is set to commence construction of a new port, marking the end of a prolonged stalemate that stemmed from disagreements over contract terms with foreign developers.
Gerson Msigwa, the permanent secretary of information, arts and sports and chief government spokesperson told the press on Sunday in Dar es Salaam that construction of the Bagamoyo port will start this December, adding that it will be a government funded project, but noted that they are not against foreign investors joining to support the initiative, once ‘the ball starts rolling.’
“Phase one covers 14 berths. The port will eventually have 28 berths,” said Msigwa.
In 2013, Tanzania signed a framework agreement with China Merchants Holdings International and the Oman State General Reserve Fund for the development of the port. However, implementation stalled after the government deemed the terms unfavourable.
Upon assuming office in 2021, President Samia Suluhu Hassan’s administration began renegotiations to revive the US$10 billion project.
Bagamoyo port is part of the Tanzania special economic zone initiative that includes industrial parks and rail and road links. Msigwa said it is expected to reach a depth of 20 meters, allowing larger vessels, perhaps than any other port in East Africa.
According to Omar Mokhtar, an investment and business consultant, the Bagamoyo port project strengthens Tanzania’s value chains, with its location north of Dar es Salaam opening opportunities in port services, warehousing, and manufacturing.
“For investors, it combines large-scale infrastructure with a strategic location,” he said recently.
“Bagamoyo Port is becoming reality. Its design links a deep-water port with logistics infrastructure, transforming Tanzania into a pivotal trade gateway and regional economic engine,” added the consultant.
Further afield, South Africa’s Industrial Development Corporation (IDC) has announced a tender for transaction advisory services for building of an R13.8 billion (approximately US$799 million) port at Boegoebaai in the Northern Cape.
Located 20 km from the border with Namibia, the Boegoebaai port project is a joint venture between IDC, Transnet, South Africa’s rail, port and pipeline company, and Infrastructure South Africa (ISA).
The proposed project will in turn unlock the economic potential of the Northern Cape Province through the creation of job opportunities.
Phase 1A of the proposed project, which comprises dry bulk, liquid bulk and multi-purpose terminals, could create 400 permanent jobs and over 13,000 indirect jobs over time.
The winner of the 9-month advisory contract will be charged with providing advice on legal, commercial, financial, and technical transaction services, to enable successful procurement and commercialisation of the development of the port.
“This renewed progress marks a major step toward unlocking growth on South Africa’s west coast,” said Andrew Roberts, a freight forwarding expert.
Oliver Ochieng, Blue Africa News