What you need to know:
- The target firm, Ticts, is a locally incorporated company with core activities focused on stevedoring, loading and unloading of container vessels, onshore operations, and stuffing and un-stuffing of containers, storage, and delivery of cargo to consignees,
Dar es Salaam. Indian firm, Adani International Port Holdings Pte Limited (AIPH), owned by business magnet Gautam Adani, is on a move to expand its business interests in Dar es Salaam Port with a new acquisition of Tanzania International Container Terminal Services Limited (Ticts).
On February 6, 2023, through a government paper, the Fair Competition Commission (FCC) issued a public notice that it had received a notification from East Africa Gateway Limited (the acquiring firm), a subsidiary of AIPH, to acquire the entire issued ordinary share capital in Ticts.
The public notice said that the “FCC has begun the review and investigation of the intended acquisition with a view to examining whether it is likely to harm competition."
East Africa Gateway Limited (the acquiring firm) is a United Arab Emirates (UAE)-incorporated company that is yet to establish operations in Tanzania; however, its parent company, AIPH, is already engaged in port and marine business within the country.
The AIPH currently runs four container handling berths (8 to 11) as a service provider at the Dar es Salaam Port, after the expiration of their five-year contract between the Tanzania Ports Authority (TPA) and Ticts, which is also a subsidiary of Hong Kong's Hutchison Port Holdings Ltd.
The target firm, Ticts, is a locally incorporated company with core activities focused on stevedoring, loading and unloading of container vessels, onshore operations, and stuffing and un-stuffing of containers, storage, and delivery of cargo to consignees, whose founding directors include local businessmen Nazir Karamagi and Yogesh Manek.
TPA invited bids in August last year for companies to operate the container terminal at the Port of Dar es Salaam but has yet to make a formal announcement on the award of the contract.
Ticts, which is the subject of the latest acquisition and bound to make a return as a terminal operator in Tanzania, operated the container terminal at the Dar es Salaam port for 22 years until the government's decision last year not to renew its contract.
The merging firms, East Africa Gateway Limited and Ticts, are poised to play pivotal roles in shaping the future landscape of port operations in Tanzania.
The government has been on a move to improve efficiency at the port businesses in the country as a way to maximize their significant contribution to the economy and compete against other gateways, such as the Port of Mombasa.
This latest development comes after Tanzania last year awarded a contract to Dubai-based DP World to operate eight berths at the Dar es Salaam port (berths 0-7).
The signed contracts include the Host Government Agreement (HGA), the lease and operation of berths 4–7, and the joint operation of berths 0–3 between TPA and DP World for commercial and governmental activities.
TPA’s director general, Mr. Plasduce Mbossa, said, "After the signing of these agreements, the government will be able to keep more than 60 percent of all revenue as all operating costs will be borne by DP World."
During the signing that was witnessed by President Samia Suluhu Hassan, the TPA boss, Mr Mbossa, said projections showed that by increasing efficiency, there would be a boost to the number of served ships to 130 instead of the current 90.
"We expect that revenue collected by TRA at the port will increase from the current Sh7.8 trillion in 2021/22 to Sh26 trillion by 2032,” he said.