Bagamoyo Port

The Bagamoyo Port is being constructed in Bagamoyo, Tanzania. Work started in 2018. It is planned to be one of the largest government infrastructure projects in the country. The Bagamoyo port and its affiliate industrial zone is meant to address congestion at the old port and support Tanzania to become East Africa’s leading shipping and logistics centre.[1]

Bagamoyo Port
The dhows on the Bagamoyo Indian Ocean shoreline.
Location of Bagamoyo Port
Location
CountryTanzania
LocationBagamoyo
Coordinates6.432933°S 38.903804°E / -6.432933; 38.903804
Details
Opened2017
Operated byTanzania Ports Authority
Owned byGovernment of Tanzania
Type of harborNatural/Artificial
Size800 ha
Project CostUS$ 10 Billion
Statistics
Website
www.ports.go.tz

History

Contracts to begin port construction were signed in October 2015 and was set to complete phase I of the construction project in 2017.[2] The project was cancelled by a new government 3 months later in January 2016. [3][4]

In 2018, the project got the go ahead and work started in about June/July. It will be built in association with the state-owned China Merchants Port, it will include a special economic zone. The US$10 billion project is backed by an Omani sovereign wealth fund.[5][6][7]

Plan

The port is set to handle 20 million teu by 2045 and will be the largest port in East Africa when completed. The project is a tri-government venture between Tanzania, China and Oman. The port is to handle 25 times[8] the amount of cargo of Dar es Salaam Port and will help reduce the congestion at the port. The project also involves the construction of a Special economic zone adjacent to the port.[9] Also to be constructed around Bagamoyo area are over 190 industries, including the manure processing industry that will be put up by the government of Oman. When fully developed, the Bagamoyo Special Economic Zone will attract about 700 industries to become a strategic investment zone in East Africa.[1]

Special Economic Zone

The project also includes a 1700 ha special industrial zone. The special economic zone is funded by the Government of Tanzania and the State government reserve fund from Oman. The port is being constructed by China and the industrial zone will be constructed by Oman and administered by Export Processing Zone Authority of Tanzania. The industrial zone will also have rail links to the TAZARA Railway and Tanzanian Central Railway.[9]

Stalling since 2019

In 2019 the Tanzanian government under President Magufuli entered into new negotiations about the ratification of the project. He was reported to have called the conditions "exploitative".[10] In May 2019 Tanzania Ports Authority's (TPA) director general Deusdedit Kakoko declared that the negotiations have stalled "because investors’ conditions were likely to deny Tanzania maximum benefit from the project", pointing to demands for tax exemption and compensation for any losses incurred during implementation of the project.[11]

In April 2020 a Kenyan newsite reported that Tanzania had cancelled the project, which was not commented on by official sources.[12]

See also

References
  1. "Construction of US $10bn Bagamoyo port in good progress". Retrieved 2019-05-24.
  2. "Bagamoyo port: Tanzania begins construction on mega project - BBC News". BBC News. Retrieved 2015-12-25.
  3. "Bagamayo Port Project Shelved". Retrieved 1 September 2016.
  4. "Govt halts building of Bagamoyo Port". The Citizen.
  5. https://www.theguardian.com/cities/2018/jul/31/china-in-africa-win-win-development-or-a-new-colonialism
  6. https://constructionreviewonline.com/2018/07/africas-seaports-a-catalyst-for-growth/
  7. http://www.xinhuanet.com/english/2018-04/24/c_137131835.htm
  8. "The race to become East Africa's biggest port". BBC News. Retrieved 2019-05-24.
  9. "Bagamoyo Port construction begins". www.dailynews.co.tz. Retrieved 2015-12-25.
  10. Tanzania’s Decision To Suspend The Bagamoyo Port Project Is An Unfortunate Move Against Beijing, Eurasiafuture 29 June 2019
  11. Why talks on port stalled, The Citizen (Tanzania), 19.May 2019
  12. Prachi Mittal: The Bagamoyo port project and lessons for Africa borrowing, The Citizen 21.09.2020
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