A historic project has been launched by the Tanzania-Zambia Railway Authority (TAZARA), a railway owned by both the Tanzanian and Zambian governments, in collaboration with the Dar es Salaam Corridor Group (DCG). This enterprise aims to build and run a dry port in New Kapiri Mposhi, Zambia, at the end of TAZARA. The project’s strategic vision incorporates the private sector in an effort to fully utilize TAZARA’s considerable unused capacity, thereby marking a significant shift in the region’s transportation and logistics sector.
TAZARA Dry Port Development
The TAZARA Dry Port, located at the terminal end of the Tanzania-Zambia Railway Authority (TAZARA) in New Kapiri Mposhi, Zambia, represents a significant development in the region’s logistics and trade facilitation. The Dar es Salaam Corridor Group (DCG) has entered into a partnership with TAZARA for the port’s development, following a competitive bidding process. The project is to be executed on a Build-Lease-Transfer (BLT) Public-Private-Partnership (PPP) model, wherein DCG will construct the port on a four-hectare land, operate it for a 25-year lease period, and subsequently transfer it to TAZARA. This Dry Port is expected to enhance freight traffic and generate additional revenue through its operations, as well as from the lease, thereby utilizing TAZARA’s capacity more fully. Once completed, it will serve as a central node for cargo trans-shipment to various inland destinations, leveraging the existing railway infrastructure
The Tanzania-Zambia Railway Authority (TAZARA)
Constructed between 1970 and 1975, TAZARA spans over 1,860 kilometers. It serves as a vital link between Zambia and the seaport of Dar es Salaam in Tanzania. It also offers road and railway connectivity to other parts of Southern Africa. With connections to Asia, the Middle East, and China, TAZARA is an essential link in the supply chain for businesses in Central and Southern Africa. It provides the shortest route to the sea via the Port of Dar es Salaam, thus playing a crucial role in the logistical chain.
The Dar es Salaam Corridor Group (DCG)
Established in 2004, DCG is a logistics solutions provider based in Dar es Salaam. It is wholly owned by African Ports and Corridors Holdings (APCH), with African Infrastructure Investment Managers (AIIM) holding a 60% stake. DCG has invested heavily in port handling equipment, specialized tipper trucks, dry bulk terminals, and warehousing over the years. The company is involved in cargo handling and operates large warehousing facilities as well as bulk, multi-purpose, and metal terminals around the Port of Dar es Salaam. With a presence in several African countries, DCG has become a significant player in the region’s logistics sector.
The Tazara Dry Port Project
The Tazara Dry Port project is a significant development in the region’s transportation sector. DCG emerged as the winner from an open competitive bidding process and is expected to begin constructing the Dry Port soon. The agreement stipulates that the project will follow a Build-Lease-Transfer (BLT) Public-Private-Partnership (PPP) model. The deal calls for DCG to acquire a four-hectare plot of land, build the Dry Port on it, operate it under a 25-year lease, and then hand over all of the immovable assets to TAZARA once the lease is up.
The Dry Port will be located on the northern side of the New Kapiri Mposhi Railway station, taking up approximately 4.3756 hectares (10.81 acres) of land. The site already has an installed gantry crane with a lifting capacity of 36 metric tons. The dry Port, also known as an inland port, will be directly connected to a seaport by road or rail, serving as a trans-shipment center for cargo destined for other inland locations.
Economic Impact and Benefits
The construction and operation of the Tazara Dry Port will not only generate additional freight traffic for TAZARA but also provide a steady stream of revenue from the lease and the Port’s daily operations. During construction, 500 jobs will be created, and once the project is up and running, up to 3,000 jobs will be created, both directly and indirectly.
DCG’s CEO, Mr. Jesper Sorensen, has expressed his optimism about the project. He believes that it signifies a new era in the development of logistics between Tanzania and Zambia. By promoting railways as the main mode of transportation in the logistics chain, the project will also reinforce the strong bond between the two countries.
The Tazara Dry Port project is a testament to the significant strides TAZARA and DCG have made in their quest to enhance transportation and logistics in the region. By leveraging the private sector’s resources and expertise, they are not only ensuring the full utilization of TAZARA’s idle capacity but also creating a model for similar projects in the future. We can only hope that this historic project will usher in a new age of growth and prosperity for Tanzania, Zambia, and the surrounding region as we eagerly await its completion.
Related FAQs
What is the TAZARA Dry Port Development Project?
The TAZARA Dry Port is a significant logistics and trade facilitation project launched by TAZARA and DCG. It involves the construction and operation of a dry port in New Kapiri Mposhi, Zambia, at the terminal end of TAZARA, fostering regional connectivity and economic growth.
Who are the key partners in the TAZARA Dry Port Project?
The key partners are the Tanzania-Zambia Railway Authority (TAZARA), owned by both Tanzanian and Zambian governments, and the Dar es Salaam Corridor Group (DCG), a logistics solutions provider based in Dar es Salaam.
What is the strategic vision behind the TAZARA Dry Port?
The project aims to fully utilize TAZARA’s unused capacity by incorporating the private sector through a Build-Lease-Transfer (BLT) Public-Private-Partnership (PPP) model. It intends to enhance freight traffic, generate revenue, and serve as a central node for cargo trans-shipment to inland destinations.
Where will the TAZARA Dry Port be located, and what are its features?
The Dry Port will be in New Kapiri Mposhi, Zambia, on a four-hectare plot. It will be directly connected to a seaport by road or rail, featuring an installed gantry crane with a lifting capacity of 36 metric tons.
What are the expected economic impacts and benefits of the TAZARA Dry Port?
The project is anticipated to generate additional freight traffic for TAZARA, create employment opportunities (500 jobs during construction and up to 3,000 jobs post-completion), and contribute to regional economic growth through revenue from the lease and daily operations.
