Dubai logistics giant DP World signed three contracts on Sunday with the Tanzanian government to operate part of Dar es Salaam's port under a controversial deal covering all the country's ports.
The new contracts give DP World exclusive management of four of the city's docks' 12 moorings and of four more in partnership with the Tanzania Port Authority.
The contracts will be reviewed every five years, TPA director general Plasduce Mbossa said.
The signings follow an intergovernmental agreement inked last October by President Samia Suluhu Hassan paving the way for DP World to manage parts of the Dar es Salaam's port in consultation with the government.
It was ratified by parliament in June, sparking protest.
Poses a 'threat to Tanzania’s sovereignty'
DP World CEO Sultan Ahmed bin Sulayem said the move will allow the company "to upgrade Dar es Salaam port into a world-class facility, building even a greater logistics hub for Tanzania."
The Dubai government-controlled firm will invest $250 million in the port over the next five years, he said.
At least two dozen people have been arrested since June for opposing the deal, according to Amnesty International, although some have since been released.
Lawyer Rugemeleza Nshala was among those freed and said he was forced to leave the country in July after intimidation and death threats.
Exclusive rights
"We have considered views by different groups before signing this deal" President Suluhu said.
She came to power in March 2021 after the death of her John Magufuli, promising more political freedom.
In June, Transport Minister Makame Mbarawa told parliament that the investment by DP World would improve the performance of Tanzanian ports, allowing more ships to dock there.
"The cost of transit cargo will also drop by almost half," he said.
