Breakoutfiles.ctctcdn.com/8360ff0d101/7fea7abc-ef11-4f9a-9dfd-499f130d05c3.… · Breakout Session 2: Development of the Dar es Salaam Port March 17 ... TRADE GROWTH – BY PORTS

Breakout Session 2: Development of the Dar es Salaam Port March 17, 2015 11:30 –12:30

Presentation: NtanduMathayo, Strategic Planning Director, Tanzania Port Authority (TPA)George Wolf, Senior Director, Trademark East Africa

Moderation: Peter Varndell, Manager, Afri‐ID

Panellists: Mervin Chetty, General Manager Africa Strategy, TransnetGeoff Thompson, Business Development Director , Stefanutti StocksGary van Wyk, General Manager: Capital Projects, Grindrod

Forum co‐sponsor

NEPAD Business FoundationAfrica Infrastructure Desk (Afri-ID)

2ND INFRASTRUCTURE PROJECTS‐PUBLIC‐PRIVATE DIALOGUE FORUM

“DEVELOPMENT OF DAR ES SALAAM PORT”Presented in Johannesburg

17 March 2015

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4Development of Dar es Salaam Port 17 March 2015

• TPA and its Role• Dar es Salaam Port• Challenges• Mitigation measures • How do we take the project further?

Layout

Development of Dar es Salaam Port 17 March 2015

TPA and its RolesTanzania Ports Authority (TPA) wasestablished by the Ports Act No. 17of 2004 as landlord port authority.• 3 major gateway seaports (Dar es

salaam – handles over 90% of alltrade; rest by Tanga & Mtwaraports (sea ports) and Lake ports

• 10 inland water-way ports(6 on Lake Victoria, 2 on LakeTanganyika and 2 on Lake Nyasa)+ several beach sites in all lakes

• Eight land-linked countries (>200million people. (Tanzania, Malawi,Zambia, Mozambique, DR Congo,Burundi, Rwanda and Uganda)


TPA and its Roles (Cont….)

TPA is currently performing the roles of landlord and operator has the following major functions:

• Developing/Improving ports

• Promoting the use of ports

• Operating the ports


Tanzania Main Sea, Lake Ports & land linked Countries


The port has two terminals (General Cargo and ContainerTerminals)

TPA operates General Cargo Terminal (Berth 1-7) whileTanzania International Container Terminal Services ltd(TICTS) -a private company operates Container Terminal(Berth 8-11) under concession agreement

The port has a Quay length of 2,600 metres with 11berths, for deep sea vessels and a lighter quay for coastalships

Grain Terminal facility (storage capacity of 30,000 tons)

Dar es Salaam Port


Inland Container Depots (ICD) facilities – 10 privateICDs (14,750 TEUS) and 3 Private CFS (6,000 motorvehicles)

Single Point Mooring (SPM) - refined and crude oil max.tanker of 150,000 MT

Kurasini Oil Jetty (KOJ) for refined products (tanker sizeof 45,000 MT for KOJ1 and 5,000 tons for KOJ2.

Grain Silo facility – 30,000 MT

Connectivity by both Central Rail line (TRL) and TAZARAto land-linked countries

Dar es Salaam Port (Cont……..)

Importance of Dar es Salaam Port to SADC Region

• The existing Rail network (TAZARA) that links well countries in the region

• Strong cross border trade links

• Shortest and most direct access to sea based transport


Source: Inros Lackner AG

Challenges

• Port congestion



Challenges (Cont……)

• Terminal layout restrictions



• Trade Growth – There is a need to increase capacity ahead of demand

TRADE GROWTH – BY PORTS

Source: Tanzania Ports Master Plan 2009

Port Actual 2013/14(million

tons/annum)

Forecast 2028(million tons/annum)

High Forecast

Low Forecast

Dar es Salaam 14.3 41.5 22.65

Tanga 0.368 4.6 1.45

Mtwara 0.356 24.8 2.40

Lake Victoria 0.218 2.05 0.60

Lake Tanganyika 0.088 3.25 1.70

Lake Nyasa 0.006 1.40 0.30

Challenges (Cont…….)

Development of Dar es Salaam Port17 March 2015

• Changing Shipping Technology

• Increasing vessel size and larger ship exchanges (economies of scale) in the container, liquid and dry bulk trades

Challenges (Cont……)


• Need to Improve Interfaces Across Transport Modes

• Intermodal exchange areas designed prior to the introduction of container and dry‐bulk shipping

• Warehousing in immediate port environs designed for general cargo operations

• Lack of Large functional ICDs /CFS

Challenges (Cont….)


Deteriorating Rail and Lake Services

• Rail‐Two networks (Rahco and Tazara) of different gauge‐1.0 m and 1.067m.

• Performance of Inland water‐way depends on Rail

• Collapse of services TRL in 2013 (0.1%)

• Roads 99%

Rail Volumes (as % of total port throughput)



Poor Land Use Planning

• Poor zoning arrangements anduncoordinated development in portenvirons (peri‐port land)

• Poor port access road (dualcarriageway extends to one gateonly)

• Single lane roads in port environs

• No truck parking facilities

• City Congestion and long truck‐turnaround time


Development od Dar es Salaam Port 17 March 2015

Inadequate Own Investment Funds

Funds to restore/modernize existing port facilities and develop new one

Develop ports for non-commercial purposes to open up the areas for transit trade and socio-economies

Develop passenger facilities as Public Service Obligation



Increasing Corridor Competition

competitiveness is not only linkedto distance, transport mode andquality of infrastructure; but to:

the competence of private and public logistics service providers;

the performance of customs and other government agencies.

No. 10


Acquisition of modern operational equipment

Expansion of operational areas Use of ICT systems for cargo and vessel operations: Completion of Port Community System (Electronic

Single Window System-eSWS) which commenced in

February 2014

Implementation of Eletronic Payment System

Completion of Enterprise Resource Planning project

Mitigation Measures – Operational Improvement


Dar es Salaam Maritime Gateway Project (DMGP)

The project has three components and is funded bythe World Bank

Deepening and Strenghening of berth 1-7 andconstruction of RoRo Terminal

Deepening and widening of Entrance Channel andTurning Basin

Modernization of bulk cargo handling (installationof Conveyor System & Silos)

Mitigation Measures – Investment Opportunities


Dar es Salaam Maritime Gateway Project(Cont.....) Deepening and Strenghening of berth 1-7 and

construction of RoRo Terminal Component Tender for this component has been advertised and

opened Evaluation of technical proposals has been

completed and the next step is to call for financialproposals from the technically qualified bidders



Dar es Salaam Maritime Gateway Project(Cont.....) Deepening and Widening of Entrance Channel and

Turning Basin Evaluation of expression of Interest for carrying out

Bathymetric, hydrodynamics, geo-tech surveys &feasibility study for channel and basin completed inSeptember 2014

Request for Proposal issued to shortlisted firms on16th December 2014 and submissions wereopened on 17th February 2015

Consultant is expected to be engage by May 2015



Development of a New Container Terminal(Berth 13 & 14)

TPA intends to undertake this project through PPPunder Design Build Operate Transfer arrangements

Mitigation Measures–investment Opportunities


Development of a New Container Terminal(Berth 13 & 14) Cont......... Evaluation of the EoIs for the project completed in

November 2015

Request for Proposal issued to 10 shortlisted firmsand deadline for submission of proposals is set on 22April 2015

The project is expected to double container handllingcapacity of the Dar es Salaam port from the carrentTEUs 600,000 to TEUs 1.2 m per annuam



Located between two Railway lines (TAZARA and TRL),around 40 km west of the port, 1,760 Acres of landoffered to TPA

Full feasibility and preliminary design is being carriedout under the World Bank funding and expected to becompleted by June 2015

The project will be developed under PPP.


Development of Kisarawe Cargo Freight Station (KCFS)


1,000 hectares of land has been offered to TPA and nowcompensation is being done

Negotiations are underway to develop the port underjoint venture

Mitigation Measures Investment Opportunities

Development of Mbegani Port at Bagamoyo


How Do We Take These Projects Further?

NEPAD business Foundation (NBF) – Afri ID is invited tosupport TPA in implementation

TPA invites private sector to support in the implementationof identified infrastructure projects


Welcome to TANZANIA PORT AUTHORITY

For the Support of Regional Trade and Logistics


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Breakoutfiles.ctctcdn.com/8360ff0d101/7fea7abc-ef11-4f9a-9dfd-499f130d05c3.… · Breakout Session 2: Development of the Dar es Salaam Port March 17 ... TRADE GROWTH – BY PORTS