PRIVATISATION OF DAR ES SALAAM CONTAINER TERMINAL	TANZANIA

> SECTOR(S) : Ports

> SERVICE(S) : Legal and Regulatory Services, PPP Advisory

CPCS was mandated to concession the operations and equipment of the Container Terminal (CT) at the Port of Dar es Salaam in Tanzania. The aim of this privatization was to ensure greater efficiency improvements to the users of the CT by the cost effective operations of a private operator.

CPCS examined current and potential (under concession) operations of the CT.  This consisted of a review of the tariffs, financial and legal due diligence, traffic levels, markets, labour, port management and management procedures, civil and equipment engineering, operations, legal and regulatory issues, and environmental issues.  In addition CPCS assessed the competitive environment by developing productivity indicators and comparing these against international benchmarks.  This led to the development of a detailed financial model which incorporated costs, investment requirements and tariff projections, among other items. 

CPCS examined the potential methods of concession and formulated a commercialization plan outlining the structure and various aspects of the preferred commercialization option.  The plan identified the appropriate restructuring process and concession strategy required to successfully create an efficient ports industry.  CPCS assessed investor interest in the concession to be granted, and recommended measures that contributed to attracting top-quality investors.

The concessioning of the Container Terminal was successfully completed and the operating lease awarded to International Container Terminal Services Inc. (ICTSI).  The period of the concession was recently extended up to 2025.