DP World and the British government’s development-finance arm are set to break ground on a deep-sea port in the Democratic Republic of Congo as the Emirati logistics company expands its footprint in Africa, Bloomberg reported.
British International Investment Plc is investing $35 million in DP World’s infrastructure project at the Port of Banana, where the Congo River meets the Atlantic Ocean.
This follows previous collaborations between the two entities 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 Monday in a statement. The government agency estimates the investment will cut the cost of trade in the DRC by 12% and create as many as 85,000 jobs.
The project expands DP World’s presence in Africa, where the company plans to invest $2 billion in port infrastructure and $1 billion in its logistics operations over the next three to five years to support long-term growth.
Africa boasts vast and abundant natural resources, including oil and gold. As demand for critical minerals skyrockets, companies are ramping up investments across the continent to stay competitive.
Meanwhile, the declining performance of South Africa’s rail and logistics firm, Transnet SOC Ltd., is creating opportunities for regional ports.
As Transnet works on improving its operations, these ports are increasing their capacity to capitalize on the growing demand.
DP World’s strategy involves developing the Port of Banana and establishing a new trade corridor that connects it to Africa’s east coast, according to Chairman Sultan Ahmed Bin Sulayem.
The project aims to overhaul the Democratic Republic of Congo’s basic infrastructure by adding a 600-meter (1,968-foot) quay with an 18-meter draft, designed to accommodate the largest vessels currently in operation.
DP World plans to achieve a container handling capacity of approximately 450,000 units. A company spokesperson did not provide a timeline for the development.
The growing demand for critical minerals, such as copper from Zambia and the DRC, is fueling the need for expanded logistics capacity, Mohammed Akoojee, CEO of DP World’s sub-Saharan African business, said earlier this year.
