Developping the Port of Dakar

Developping the port of Dakar

PROPARCO has allocated a direct loan worth over EUR 16M to Dubai Port World Dakar (DPW Dakar) for the extension, refurbishment and operating of the container terminal in the Northern Zone of the Port of Dakar.  DPW Dakar, a subsidiary of DPW FZE, is the concessionaire that has been operating a 25-year concession for the container terminal of the Port of Dakar since 2008. The project will create jobs, increase trade, develop transshipment activities and increase State revenues.

Context
 The Port of Dakar is both the entry and exit point for the country’s trade and is a potential contact point with the major shipping routes of the Atlantic. Dakar is the third largest port in West Africa behind Modernization and development of the Port of Dakar began back in 2006 with the concession, rehabilitation, extension and operation of the container terminal.

The operation and the investments needed were consigned by contract to Dubaï Port World Dakar, a subsidiary of Dubaï Port World (DPW), the fourth global operator of container terminals. DPW ranks as the fourth largest container terminal operator in the world with over 43.5 million TEU2 managed in 2009. DPW employs some 28 000 people and is an international operator working on the  5 continents, with 43 terminals in operation in 27 countries.

Objectives
 The aim of the project is to increase traffic and container storage capacities for import/export and also boost the transshipment activity.
PROPARCO aims at playing its countercyclical role in the context of the global crisis of 2008-2009 which had a heavy impact on maritime companies. Given the contraction of trade, commercial banks had little appetite for financing projects associated with transport of commodities in 2009.

Description
 PROPARCO has allocated a EUR 16.25M direct loan to DPW to:
  • Refurbish two existing platforms at the North Zone container terminal ;
  • Build a third platform ;
  • Operate the terminal under a concession signed in October 2007.
The total project cost is estimated at EUR 196M, including almost half in debt. This terminal will have an annual handling capacity of 550 000 TEU.

Bara Sady, Directeur Général du Port Autonome de Dakar

“The Port of Dakar development project consists of increasing the reception capacity for large vessels and the storage of their containers. In reality, this means lengthening the quaysides, deepening channels, filling one of the docks to increase storage space and reinforcing their equipment to accommodate third generation vessels with a transport capacity of 3,000 twenty foot equivalent unit (TEU). The increase in reception capacity and expected productivity gains will significantly augment the port’s traffic. The finance offered by PROPARCO to DPW Dakar, our operator, will reinforce the import/ export and transshipment activities of the Port of Dakar.”