Dubai: DP World, and the Government of Senegal, have signed agreements for the development of a deepwater port at Ndayane, approximately 50 kilometres (km) from the existing port and near the Blaise Diagne international airport.
The new port will further reinforce Dakar's role as a major logistics hub and gateway to West and North-West Africa. It will also support the realisation of President, Macky Sall's ambitious economic development plans for Senegal, the Plan Senegal Emergent (PSE).
Extended 50-year concession
The agreement is part of the 50-year concession for the Port of Dakar, which has two 25-year terms. It starts once operations begin at the new port, according to the addendum to the existing concession of 2017.
DP World's concession for the Dakar facility already includes a plan to develop a new container terminal alongside the existing container terminal. However, after discussions between Sall and Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, it was agreed that it would be more appropriate for Senegal's development to carry out a more ambitious project and build an entirely new port outside the city.
Agreements were signed in Dakar, between Alioune Ndoye, Minister of Fisheries and Maritime Economy of Senegal; Aboubacar Sedikh Beye, Director-General of the Autonomous Port of Dakar (PAD), and DP World's Chairman, paving the way for the development of the new port.
DP World Dakar SA, the local joint venture company between DP World and PAD, will not only develop and operate the 300-hectare (ha) container terminal but also finance, design and develop the land and maritime infrastructure of the new 600ha port.
The first phase of this project will see an investment by DP World Dakar of US$837 million, which will make it the single largest private sector investment in the history of Senegal and is expected to be followed by the second phase of investment of $290 million.
Phase 1 will include a new container terminal with 840 metres (m) of the quay and a new 5km marine channel designed to handle 366-metre vessels and capable of handling the largest container vessels in the world. Phase 2 will create 410m of additional container quay and further dredging of the marine channel to handle 400m vessels.
The first phase of Ndayane Container terminal will be operated alongside the existing DP World Dakar container terminal. Due to the government's vision for the development of the Port of Ndayane as a site for the next 100 years of port activities in Senegal, the terminal will eventually have over 3 kilometres of quay and 300 hectares for the container yard. This will enable the existing Port of Dakar to be redeveloped into a mixed-use residential and commercial waterfront and cruise terminal.
DP World is also planning to develop a special economic zone next to the Port of Ndayane to further strengthen the attractiveness of Senegal to foreign investors looking at the Ecowas region.
Cheikh Kante, Minister of State, and Special Envoy to the President, said: "The development of the new port at Ndayane will enable Senegal to maintain its position as the maritime gateway to the region and play a significant contribution towards the realisation of Maky Sall's vision for an Emergent Senegal."
Senegal recently became the second country to join World Logistics Passport, an initiative by Dubai established to increase trading opportunities between developing markets.