China Merchants Port Holdings signed a contract in 2015 to construct the port and associated free zone, with the project mooted as part of Beijing’s (now faltering) Belt and Road strategy, but Hassan’s predecessor, John Magufuli, complained that the deal was too favourable to the Chinese firm.

Last July, Hassan said that the government would begin talks “with the investors that came for the project”, apparently a reference to China Merchants. However, the latest announcement suggests that any talks that may have taken place have not been fruitful. It has been reported in the Tanzanian press that the government is looking for a strategic investor, but that the TPA is developing it in the meantime.

The TPA said that several international companies have already expressed an interest in operating the project, but, as ever, financing will be the major obstacle. Any mention of the planned handling capacity of 20M TEU a year seems to have been forgotten.

The government’s long-term vision for the Tanzanian port sector mirrors that of neighbouring Kenya. Nairobi hopes to see the Port of Lamu developed as a huge entrepôt to take pressure off Mombasa, while it is hoped that Bagamoyo can play the same role in Tanzania in relation to Dar es Salaam.

Both Mombasa and Dar es Salaam are hemmed in by their urban surroundings, but the two new port projects – while being developed on the sites of historic ports – have far more scope for expansion. With Tanzania’s population set to grow over the next few decades, it seems certain that a major new port will have to be developed, and Bagamoyo is just 75 km from Dar es Salaam.

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This complete item is approximately 310 words in length, and appeared in the November 2022 issue of WorldCargo News, on page 6. To access this issue download the PDF here