Adani-AD Ports partnership aims to position Tanzania as regional logistics hub
Updated: Aug 16, 2022
Indian port conglomerate Adani Group (APSEZ) has concluded a memorandum of understanding (MoU) with AD Ports (Abu Dhabi Ports) 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 in the East African country.
“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 said.
The move follows an official approach from the Tanzanian Port Authority (TPA), which governs port-inland waterways systems, for investment support from the Indian side to develop maritime infrastructure projects, notably a $500m three-berth expansion at Dar es Salaam Port.
Other projects on the drawing board include: construction of a major port in Bagamoyo, with some $1bn funding; a $600m plan for the Mangapwani multipurpose port in Zanzibar; and a $300m investment in a new oil jetty in the Dar es Salaam harbour.
“With the East African Free Trade Zone and African Continental Free Trade Area coming into play, Tanzania is likely to emerge as a major transit point for general commodities as well as petroleum products,” said the Indian Ministry of Shipping. “In this backdrop, investment in the port sector or oil jetty in Tanzania would make good commercial sense.”
The potential in Tanzania mainly stems from its “gateway access” to cargo volumes moving in and out of the six land-locked countries of Malawi, Zambia, Democratic Republic of Congo, Burundi, Rwanda and Uganda.
“This MoU with Adani Ports is significant in its impact on both Tanzania’s ability to transform itself into an African trading hub, as well as our ability to further develop our global capabilities and connections that will bring goods to market faster and more efficiently,” said Capt Mohamed Juma Al Shamisi, MD and group CEO of AD Ports Group.
Karan Adani, CEO of APSEZ, added: “We are pleased to be partnering with AD Ports Group in the development of key quality infrastructure in Tanzania, especially in the ports and maritime sector, which will improve and bring about positive change in the communities, standing by our commitment to growth with goodness.”
APSEZ has been aggressively working to extend its port network reach beyond India in a bid to become the world’s largest port operator by 2030. And targeting the Tanzania market is expected to “yield significant contributions towards that goal”.
While preliminary plans indicate landside connectivity development interests to speed up hinterland cargo flowing through Dar es Salaam, those project specifics were not immediately available.
“We are evaluating the areas for collaboration with concerned stakeholders,” an Adani official told The Loadstar.
Currently, Dar es Salaam, Tanzania’s busiest gateway, can handle more than 10 million tonnes of cargo a year, according to available data.