Indian conglomerate, Adani Ports and Special Economic Zone Limited (APSEZ) has been awarded contract by the Tanzania Ports Authority (TPA) to operate
Indian conglomerate, Adani Ports and Special Economic Zone Limited (APSEZ) has been awarded contract by the Tanzania Ports Authority (TPA) to operate berths that were previously served by Tanzania International Container Terminal Services (Ticts).
Ticts had been handling containers at the four berths but TPA terminated the contract after the two sides failed to agree on renewal terms. The firm 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..
Logistics solutions
Adani Ports and SEZ Ltd is India’s largest integrated ports and logistics company, representing a network of ports with India’s largest SEZ at Mundra. 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.
The company will now run berths eight through 11 of the Dar es Salaam Port on behalf of TPA. 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.
“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. All arrangements will remain the same. What we did was just engage a service provider more efficiently and at reasonable standards. TPA will be collecting all the port charges,” said Mr Mbossa, TPA director general.
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.