WORK has begun on building a US$10 billion port capable of handling vessels of up to 8,000-TEU in the first development phase and a special economic zone at Bagamoyo in Tanzania.
The facility will be the country's biggest port and the project aims to transform the East African country into a regional trade and transport hub.
It's financially backed by China Merchants Holdings (International), which will handle most of the construction work, and Oman's State General Reserve Fund.
Tanzania's President Jakaya Kikwete attended the groundbreaking ceremony and said construction of phase one would take three years, and there is room for expansion, reported Reuters.
The whole project, including roads, railways and the economic zone is expected to take a decade to complete, but it was unclear in how many phases it will be carried out.
"The construction of the Bagamoyo port and a special economic zone is aimed at realising the government's goal of bringing about an industrial revolution in Tanzania," President Kikwete was quoted as saying.
Executive vice-president of China Merchants Holdings, Jianhua Hu, said implementation of the project marked "the most significant event" in Tanzania-China relations over the past four decades.
The country's main port of Dar es Salaam is currently operating beyond its capacity with limited space for expansion. Cargo volumes at Dar es Salaam port are forecast to increase by as much as 25 per cent this year to 18 million tonnes.
The World Bank said last year that inefficiencies at Dar es Salaam cost Tanzania and its neighbours up to $2.6 billion a year.
PORTS
24 October 2015 - 10:18
Work starts in Tanzania on US$10 bn port and economic zone
WORK has begun on building a US$10 billion port capable of handling vessels of up to 8,000-TEU in the first development phase and a special economic zone at Bagamoyo in Tanzania.
PORTS
24 October 2015 - 10:18
Work starts in Tanzania on US$10 bn port and economic zone
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