The Zanzibar Ports Corporation (ZPC) finalized a concession agreement with the Dutch development entity Zanzibar Ferry Development Company (ZF Devco) for the establishment of a state-of-the-art passenger and RoRo ferry terminal within the Zanzibar archipelago, located in Tanzania, in February this year.
The project envisages addressing the persistent congestion challenges encountered at the aging Malindi port. The project, known as the Maruhubi project, is a two-phased project with an estimated total investment exceeding US$350 million.
The project aims to reduce persistent congestion issues faced by the aging port of Malindi, just over 300 km to the north. Phase 1 will include the construction of the marine infrastructure and ferry terminals and will cost US$ 250 million, while Phase 2, at a cost of between US$ 100 and 200 million, will see the establishment of a special economic zone, hospitality facilities, retail spaces, logistics entrées, offices, and a large expo hall.
The completion of both phases of the project is expected to be completed 36 months after breaking ground. President of Zanzibar, Hussein Mwinyi, said the project showed the “commitment of the Zanzibar government to working with the private sector” and that the partnership was “key to unlocking the economic potential of Zanzibar.”.
ZF Devco is part of an international consortium comprising Dutch and Tanzanian companies including Delta Marine Consultants, Orange Gaia, Kengo TZ, Borgh Go, TSCON, Equa-Serve, Kimsons, C Concept Design, and DISC. In May last year, Zanzibar Port Corporation signed a contract for the management of the container terminal at the Port of Malindi in Zanzibar. Under the agreement, Africa Global Logistics will be responsible for cargo handling operations and marine services at the country’s main port facility.
The company is committed to investing in the modernization and development of the Port of Malindi. AGL also plans to build an offloading area outside the port, which is needed to relieve congestion at the port.
This agreement provided the country with a modern infrastructure capable of ensuring the country’s imports and exports are in good condition in terms of quality, safety, and security under international standards.
This new AGL facility will preserve all existing direct jobs and has created hundreds of indirect jobs for the people of Zanzibar. AGL is committed to training and developing the skills of local talent.
Tony Stenning, AGL’s Regional Director of Southern Africa, said: “We are going beyond operational improvements at this port, as we are determined to invest in its development, attract a greater variety of maritime lines, and stimulate trade volumes.”
Olivier de Noray, CEO of Ports & Terminals at AGL, expressed his satisfaction with the signing of the contract. He said, “The signing of this contract confirms our commitment to continue developing our portfolio of port concessions in Africa. It is a great opportunity for us and our partners in Zanzibar to develop the Port of Malindi and make it the gateway to Zanzibar.
During the handover, the ZPC Director General, Nahaat Mahfoudh, said, “This new partnership strengthens our goal of becoming the main transportation centre in the region. Together with AGL, we will work to ensure that this endeavour contributes to the economic and social development of our country.”
According to Mr. Mahfoudh, the acquisition of the port is part of their development efforts to expand services throughout Africa and consolidate their position as the continent’s shipping partner. He added that the AGL was investing with the belief that it would contribute significantly to connecting Africa itself with the rest of the world. He explained that protecting and developing the employment skills of permanent and temporary workers is one of the strategies and priorities for the development of this port.
AGL is a member of the MSC Group and the leading operator of port contracts in Africa. It is Africa’s leading logistics company, providing global and innovative logistics solutions to African and international customers.
AGL boasts a network of 250 shipping and maritime agents, 22 ports and railways, 66 dry ports, and 2 river terminals; its expertise developed over more than a century; and a team of more than 23,000 employees in 49 countries.
In a revolutionary development throughout the shipping and logistics sector, the Mediterranean Shipping Company (MSC) finalized its acquisition of Bolloré Africa Logistics in December 2022. This strategic move birthed Africa Global Logistics, which is set to reshape Africa’s trade and transportation.
This article was published by the editorial team at FEAFFA. For any enquiries, contact us via Email: editorial@feaffa.com/ freightlogistics@feaffa.com / onionga@feaffa.com Tel: +254733780240
