Tanzania – New Port to Boost Regional Status

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New port initiative aims to place Tanzania as a transport hub, putting pressure on other regional facilities to compete.

The Tanzanian government has started work on a new US$10bn port and special economic zone (SEZ) in Bagamoyo, which aims to transform the area in to a transport logistics hub and act as a catalyst for international and regional trade.

The project is backed by China and Oman and when completed will dwarf the Kenyan port of Mombasa, putting pressure on the Kenyan government to expand their own facilities. With the new port, Tanzania hopes to be able to efficiently exploit new oil and gas finds.

The total project consists of 800 hectares of the Bagamoyo Port Project and around 1,700 hectares of the Portside Industrial Zone; developed under an agreement between the Tanzanian government – represented by the Tanzania Ports Authority (TPA) and the Export Processing Zone Authority (EPZA) –  China Merchants Holdings International (CMHI) and the Oman State Government Reserve Fund (SGRF), explained a report by Tanzania Daily News.

Tanzanian President Jakaya Kikwete, stated on October 16th that the construction work was aimed at “brining about an industrial revolution” in the country, reported the East African. The port itself will cater for ‘mega-ships’ with a container vessel size of 8000 twnety foot equivalent units (TEUs).

The project, which will include roads, railway and the SEZ, is expected to take 10 years to complete, but when finished it will have an annual capacity of around 20m containers, compared to 600,000 in Mombasa.

Tanzania is also targeting increased capacity of its main port at Dar es Salaam to 28m tonnes a year by 2020 from the 14.6m tonnes it handled in the financial year 2013/14.

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Mombasa Port: (CC)

Tanzania Daily News explained that hours after the laying of the first foundation stone there was an announcement of the new Mapinga Satelitte City just 2km from the Bagamoyo site, and will include modern housing technology, amenities and recreational facilities.

Kenya is currently constructing a  $274m container terminal in Mombasa, in a bid to handle increasing volumes of trade, which is being driven by a construction boom, infrastructure development and an emerging middle class.

Kenya and Tanzania are caught in a head-to-head race to become the preferred regional transport hub amid massive expansion projects in sea ports, connecting railway and road networks.

“The sheer capacity of the Bagamoyo port should be a concern to Mombasa port managers because capacity is key in port efficiency which many traders look up to,” James Kinyua a cargo dealer in Nairobi said, reported the East African.

Tanzania, like Kenya, wants to capitalise on a long coastline and upgrade existing rickety railways and roads to serve growing landlocked economies in Africa. Recent oil discoveries in Kenya, Uganda and Tanzania have catalysed swathes of exploration in the region, but transport infrastructure still lags behind.

Find out more in the Africa Research Bulletin

PORTS AND SHIPPING: Kenya
Economic, Financial & Technical Series
Vol.52, Issue.9, Pp.21003A–21003C

PORTS AND SHIPPING: Tanzania
Economic, Financial & Technical Series
Vol.50, Issue.5, Pp.19994B–19995B

PORTS AND SHIPPING: Tanzania
Economic, Financial & Technical Series
Vol.49, Issue.7, 19633B–19634A

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