Breakout Session 2: Development of the Dar es Salaam Port March 17, :30 12:30
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3 Breakout Session 2: Development of the Dar es Salaam Port March 17, :30 12:30 Forum co sponsor Presentation: Moderation: Panellists: Ntandu Mathayo, Strategic Planning Director, Tanzania Port Authority (TPA) George Wolf, Senior Director, Trademark East Africa Peter Varndell, Manager, Afri ID Mervin Chetty, General Manager Africa Strategy, Transnet Geoff Thompson, Business Development Director, Stefanutti Stocks Gary van Wyk, General Manager: Capital Projects, Grindrod
4 . NEPAD Business Foundation Africa Infrastructure Desk (Afri-ID) 2 ND INFRASTRUCTURE PROJECTS PUBLIC PRIVATE DIALOGUE FORUM DEVELOPMENT OF DAR ES SALAAM PORT Presented in Johannesburg 17 March
5 Layout TPA and its Role Dar es Salaam Port Challenges Mitigation measures How do we take the project further?
6 TPA and its Roles Tanzania Ports Authority (TPA) was established by the Ports Act No. 17 of 2004 as landlord port authority. 3 major gateway seaports (Dar es salaam handles over 90% of all trade; rest by Tanga & Mtwara ports (sea ports) and Lake ports 10 inland water-way ports (6 on Lake Victoria, 2 on Lake Tanganyika and 2 on Lake Nyasa) + several beach sites in all lakes Eight land-linked countries (>200 million people. (Tanzania, Malawi, Zambia, Mozambique, DR Congo, Burundi, Rwanda and Uganda)
7 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
8 Tanzania Main Sea, Lake Ports & land linked Countries
9 Dar es Salaam Port The port has two terminals (General Cargo and Container Terminals) TPA operates General Cargo Terminal (Berth 1-7) while Tanzania 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 11 berths, for deep sea vessels and a lighter quay for coastal ships Grain Terminal facility (storage capacity of 30,000 tons)
10 Dar es Salaam Port (Cont..) Inland Container Depots (ICD) facilities 10 private ICDs (14,750 TEUS) and 3 Private CFS (6,000 motor vehicles) Single Point Mooring (SPM) - refined and crude oil max. tanker of 150,000 MT Kurasini Oil Jetty (KOJ) for refined products (tanker size of 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 TAZARA to land-linked countries
11 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
12 Challenges Port congestion Source: Inros Lackner AG Development of Dar es Salaam Port 17 March 2015
13 Challenges (Cont ) Terminal layout restrictions Source: Inros Lackner AG
14 Challenges (Cont.) Trade Growth There is a need to increase capacity ahead of demand TRADE GROWTH BY PORTS Port Actual 2013/14 (million tons/annum) Forecast 2028 (million tons/annum) High Forecast Low Forecast Dar es Salaam Tanga Mtwara Lake Victoria Lake Tanganyika Lake Nyasa Source: Tanzania Ports Master Plan 2009 Development of Dar es Salaam Port 17 March 2015
15 Challenges (Cont ) Changing Shipping Technology Increasing vessel size and larger ship exchanges (economies of scale) in the container, liquid and dry bulk trades
16 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
17 Challenges (Cont.) Deteriorating Rail and Lake Services Rail Volumes (as % of total port throughput) Rail Two networks (Rahco and Tazara) of different gauge 1.0 m and 1.067m. Performance of Inland waterway depends on Rail Collapse of services TRL in 2013 (0.1%) Roads 99%
18 Challenges (Cont.) Poor Land Use Planning Poor zoning arrangements and uncoordinated development in port environs (peri port land) Poor port access road (dual carriageway extends to one gate only) Single lane roads in port environs No truck parking facilities City Congestion and long truckturnaround time Development od Dar es Salaam Port 17 March 2015
19 Challenges (Cont.) 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
20 Challenges (Cont.) Increasing Corridor Competition competitiveness is not only linked to distance, transport mode and quality of infrastructure; but to: the competence of private and public logistics service providers; the performance of customs and other government agencies. No. 10
21 Mitigation Measures Operational Improvement 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
22 Mitigation Measures Investment Opportunities Dar es Salaam Maritime Gateway Project (DMGP) The project has three components and is funded by the World Bank Deepening and Strenghening of berth 1-7 and construction of RoRo Terminal Deepening and widening of Entrance Channel and Turning Basin Modernization of bulk cargo handling (installation of Conveyor System & Silos)
23 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 financial proposals from the technically qualified bidders
24 Mitigation Measures Investment Opportunities 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 in September 2014 Request for Proposal issued to shortlisted firms on 16th December 2014 and submissions were opened on 17th February 2015 Consultant is expected to be engage by May 2015
25 Mitigation Measures investment Opportunities Development of a New Container Terminal (Berth 13 & 14) TPA intends to undertake this project through PPP under Design Build Operate Transfer arrangements
26 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 firms and deadline for submission of proposals is set on 22 April 2015 The project is expected to double container handlling capacity of the Dar es Salaam port from the carrent TEUs 600,000 to TEUs 1.2 m per annuam
27 Mitigation Measures Investment Opportunities Development of Kisarawe Cargo Freight Station (KCFS) Located between two Railway lines (TAZARA and TRL), around 40 km west of the port, 1,760 Acres of land offered to TPA Full feasibility and preliminary design is being carried out under the World Bank funding and expected to be completed by June 2015 The project will be developed under PPP. Development of Dar es Salaam Port 17 March 2015
28 Mitigation Measures Investment Opportunities Development of Mbegani Port at Bagamoyo 1,000 hectares of land has been offered to TPA and now compensation is being done Negotiations are underway to develop the port under joint venture
29 How Do We Take These Projects Further? NEPAD business Foundation (NBF) Afri ID is invited to support TPA in implementation TPA invites private sector to support in the implementation of identified infrastructure projects
30 Welcome to TANZANIA PORT AUTHORITY For the Support of Regional Trade and Logistics
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