London: DP World and the British government's development-finance arm will break ground on a deep sea port in the Democratic Republic of Congo as the Dubai logistics company broadens its expansion in Africa.
The British International Investment plc is investing $35 million in DP World's infrastructure build at the Port of Banana - located where the Congo River meets the Atlantic Ocean - following similar partnerships between the two companies in Somaliland, Egypt and Senegal.
"The port is being developed in multiple phases and its capacity is expected to gradually increase over time," BII said in a statement. The government agency estimates the investment will cut the cost of trade in the DRC by 12 per cent and create as many as 85,000 jobs.
DP World’s Africa network
The project adds another site to DP World's footprint in Africa, where it plans to spend $2 billion on ports and $1 billion on its logistics business over the next three to five years to meet long-term growth. The company's competitors have also been investing throughout the continent in light of surging demand for critical mineral exports.
Declining performance by South Africa's rail and logistics firm Transnet SOC Ltd. is creating additional opportunities for regional ports that are increasing capacity while the once-dominant company is implementing measures to improve operations.
Atlantic-Indian Corridor
DP World's strategy includes developing Banana and creating a new trade corridor that links it to Africa's east coast, Chairman Sultan Ahmed Bin Sulayem said. "We like to create corridors," he said in a February interview. "Here, you're linking the Indian Ocean to the Atlantic Ocean. This is good for us."
The project is set to transform DRC's rudimentary infrastructure by adding a 600-meter quay with an 18-meter draft, capable of handling the largest vessels in operation.
DP World plans to have a container handling capacity of about 450,000 units. A company spokesperson declined to provide a timeline for the development.
A booming market for critical minerals - including copper from Zambia and the DRC - is helping to drive the need for greater logistics capacity, Mohammed Akoojee, the CEO of DP World's sub-Saharan African business, told Bloomberg earlier this year.
"We've seen demand increasing over the last few years, largely driven by the whole electrification drive globally and the demand for commodities like cobalt, lithium," he said.
