The current state of East African ports
Inefficiencies and lack of capacity to manage port facilities amid growing business has forced Kenya and Tanzania to seek the help of DP World, the Emirati Logistics major which has a firm grip on the African market. Tanzania aims to triple revenues from the facility to $11.2 billion over the next decade and double cargo traffic to more than 47.57 million tonnes by 2032. Gilbert Langat, Chief Executive Officer, Shippers Council for Eastern Africa spoke to CNBC Africa for more.
Fri, 07 Jul 2023 13:49:50 GMT
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AI Generated Summary
- Competition between Mombasa and Dar es Salaam ports
- Challenges of inefficiency and lack of capacity in port management
- Opportunities for growth in serving landlocked countries like DRC and South Sudan
Inefficiencies and a lack of capacity to manage port facilities have been plaguing East African ports, pushing Kenya and Tanzania to turn to Emirati logistics giant DP World for assistance. DP World, known for its significant presence in the African market, has been approached to help improve operations in the region. Tanzania, in particular, has set ambitious goals to triple revenues from its ports to $11.2 billion over the next decade and to double cargo traffic to more than 47.57 million tonnes by 2032. In a recent interview, Gilbert Langat, Chief Executive Officer of the Shippers Council for Eastern Africa, highlighted the competition between ports, specifically Mombasa and Dar es Salaam. Although Mombasa has traditionally handled the majority of cargo in the region, Dar es Salaam has been making significant investments in upgrading its systems and equipment to enhance efficiency. Langat emphasized that efficiency is key in port operations, as delays and inefficiencies can lead to increased costs for shippers and ultimately impact the overall economy. He also discussed the potential growth opportunities in serving landlocked countries like the Democratic Republic of Congo (DRC) and South Sudan, highlighting the need for streamlined processes to benefit all stakeholders in the supply chain. The involvement of DP World in managing the ports of Mombasa and Dar es Salaam could help address these challenges and drive improvements in the region's port operations, paving the way for increased trade and economic growth.