Tanzania Port Authority outsources operations to Indian firm

Tanzania Dar/Arusha.

The Tanzania Ports Authority (TPA) has outsourced operations to a private company that will operate berths that were previously served by Tanzania International Container Terminal Services (Ticts).

The Indian conglomerate Adani Ports and Special Economic Zone Limited (APSEZ) will now run berths eight through 11 of the Dar es Salaam Port on behalf of TPA, which took over the services yesterday after the contract ended.

Ticts had been handling containers at the four berths but TPA terminated the contract after the two sides failed to agree on renewal terms.

Ticts had a five-year lease agreement that expired on September 30, 2022, but it was extended for another three months to give the two parties more time to discuss the possibility of renewing the contract.

The port authority took over management of the berths On Sunday, January 1, but it has contracted the Indian company to do the job on its behalf.

TPA director general, Mr Plasduce Mbossa, said the authority had already started handling the containers after retaining Ticts workers.

“As we look for another investor, we have contracted Adani Ports and Special Economic Zone Limited to provide services. This is just a service provider whom we pay at the end of the month,” said Mr Mbossa.

He emphasized that all arrangements will remain the same, adding that TPA will be collecting all the port charges.

“No changes at all. What we did was just engage a service provider more efficiently and at reasonable standards,” he said.

Mr Mbossa said the company will operate during the unspecified provisional period as TPA is moving ahead with the process to get a new investor in the berths.

“We want to get the right investor who has enough experience in port issues and who will convince us,” he said.

Adani Ports and SEZ Ltd is India’s largest integrated ports and logistics company, according to its website, representing a network of ports with India’s largest SEZ at Mundra.

Last August, the government said a number of investors had shown interest in offering the services at the port of Dar es Salaam but did not disclose the names of the investors.

However, The Citizen is aware that Adani Ports and SEZ Ltd signed a memorandum of understanding (MoU) with Abu Dhabi Ports Group to jointly pursue strategic investment opportunities in Tanzania.

The partners said they aimed to offer end-to-end logistics infrastructure and solutions covering rail, ports, maritime services, digital services and industrial zones.

“A series of potential country-level investments to grow, improve, and promote an end-to-end maritime and logistics ecosystem will make Tanzania a hub for the African region,” they then said in a statement.

TPA yesterday announced its bank accounts through which customers previously served by Ticts will have to pay the port charges.

As TPA gets the new firm, a dry port was planned in Arusha Region’s Arumeru District, in an attempt to simplify cargo transportation to the northern regions.

TPA manager Masoud Mrisha said the dry port will increase transportation of cargo through the port of Tanga.

“This dry port will simplify movement of cargo to the northern regions and the neighbouring countries,” he said.

Cargo handled by Tanzanian ports increased by 14.9 percent to 19.8 million tonnes in the last financial year as businesses are recovering from the Covid-19 pandemic in the wake of improved port infrastructure.  

According to the Bank of Tanzania (BoT), Dar es Salaam port accounted for 90.4 percent of the cargo handling. The port handled 17.85 million tonnes, a 10.3 percent increase from the 16.19 million tonnes that the port handled in the 2020/2021 fiscal year