Dar-es-Salaam Container Terminal

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A joint-venture of ICTSI (75%) and Vertex (25%) was awarded the contract to rehabilitate and operate a container terminal at the Dar-es-Salaam Port. The sponsors invested US$ 6.5 million in the project. The terminal had a capacity of 250,000 TEUs per year, and an area of 12 hectares. ICTSI and Vertex took over the terminal in Sep. 2000. The sponsors paid an annual lease fee of US$ 3 million, in addition to a royalty of US$ 13 for every twenty-foot container unit (TEU) that passes through the terminal. Through the expected improvement in efficiency and aggressive marketing and promotion by the private operator, the number of containers handled at the Container Terminal is expected to increase from the present level of about 100,000 containers per annum to more than 200,000 containers during the tenth year of operation. In 2005, former President Mkapa extended the contract to 2025, which the Parliament subsequently cancelled. By 2008, the company had seen turnover triple to an estimated 370,000 TEU, well above design capacity of 250,000 TEU. As of 2011, the terminal was still in operation. From these results the winning bidder was M/s ICTSI who submitted the highest bid in the form of Annual Lease Fee of US$ 3,680,000. The royalty had been fixed for both bidders at US$ 13 per Container. Investment in government assets calculated with a 10% discount rate