Tanzania Shipping Report Q1 2016
BMI View: Tanzania's location on the Indian Ocean enables it to serve as an entrypoint for the landlockedhinterland states of the EAC - namely Burundi, Rwanda and Uganda, and for the DRC additionally. As aresult, we expect that Tanzania's shipping sector will continue to enjoy robust growth as it will benefit notonly from domestic demand but also that of these states. Real GDP growth in the EAC is set to averagemore than 6% over the course of our forecast period, and a similar growth rate will be enjoyed by Tanzaniaitself, and this will drive both container and gross tonnage volumes upwards. At present, the Tanzanianshipping sector is somewhat constrained by the reliance on the port of Dar es Salaam, where developmenthas lagged demand and problems with congestion are a frequent occurrence. However, over the mediumterm this will ease as a major new facility is being constructed at Bagamayo, with Chinese investment.
Work on this began in H215.
Bagamoyo Port Construction Starts: Construction of the Bagamoyo Port project in Tanzania began onOctober 16. The project, estimated to cost USD10bn, will reportedly include a port, supportinginfrastructure and a 17sq km industrial park. The first phase of the project will include building the portaround an area of 8sq km in Bagamoyo District. 'Apart from the sea port and the port side industrial zone,the project includes support infrastructure in the form of railways, road network, electricity, running water,gas and communication network', said Florens Turuka, Permanent Secretary in the Prime Minister's OfficeFlorens Turuka (allAfrica). The project, touted to be the biggest in Sub-Saharan Africa, is expected totransform the country into a transport logistics hub and gateway to regional and international trade.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook