DAR ES SALAAM – Tanzania has taken a decisive step toward realizing its long-anticipated Bagamoyo Port project after the Tanzania Ports Authority (TPA) and Africa Global Logistics (AGL) Tanzania Ltd formalized a partnership agreement last week.
The Memorandum of Understanding, signed on December 6 at TPA Headquarters in Dar es Salaam, outlines plans for AGL to design, construct, and operate three modern berths at the coastal facility.
TPA Director General Plasduce Mbossa and AGL President Philippe Labonne officiated the signing ceremony, marking a pivotal moment for Tanzania’s maritime infrastructure ambitions.
Under the agreement, construction activities are scheduled to commence in early January 2026, with project completion targeted for 36 months later.
AGL, a French-headquartered subsidiary of Mediterranean Shipping Company (MSC), will leverage its extensive expertise in transport, logistics, cargo handling, and international shipping operations to bring the berths to fruition.
The partnership extends beyond Bagamoyo, with AGL also committed to developing two additional berths at Dar es Salaam Port. This dual-port approach reflects Tanzania’s comprehensive strategy to enhance its position as East Africa’s premier maritime gateway.
The Bagamoyo Port project carries decades of history and unfulfilled promise. First conceived in 2004, the ambitious development initially attracted a $10 billion partnership involving China Merchants Holdings International and Oman’s State General Reserve Fund.
However, the late President John Magufuli suspended the project in 2019, citing concerns over contractual terms that he deemed unfavorable to Tanzania’s national interests.
The new arrangement with AGL represents a strategic pivot, bringing European logistics expertise to bear on a project once dominated by Asian investment.
The selection of AGL was influenced by the company’s proven track record across multiple facets of the maritime supply chain, from port operations to customs facilitation.
When operational, the Bagamoyo Port is expected to transform Tanzania’s economic landscape.
The facility’s strategic location along the Indian Ocean trade corridor positions it to serve not only Tanzania but also landlocked neighboring countries including Uganda, Rwanda, Burundi, the Democratic Republic of Congo, and Zambia.
his regional connectivity could significantly reduce logistics costs and transit times for goods moving through East and Central Africa.
The three berths represent only the initial phase of a much larger vision. Master plans for Bagamoyo Port ultimately envision 28 berths, suggesting that the AGL partnership could serve as a catalyst for subsequent development phases.
Success in this initial construction could attract additional international investors and operators to the project.
For Tanzania, the MoU signing validates President Samia Suluhu Hassan’s efforts to revive major infrastructure projects while ensuring favorable terms for the nation.
The partnership demonstrates that Tanzania can attract world-class operators willing to invest in the country’s port infrastructure under mutually beneficial arrangements.
As construction preparations advance toward the January 2026 start date, all eyes will be on Bagamoyo to see whether this latest iteration of the port project can finally deliver on two decades of potential.
If successful, the development could fundamentally reshape trade flows across the East African region and cement Tanzania’s role as a continental logistics hub.
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