My Africa Today

Dubai: DP World said yesterday it will invest $534 million (Dh1.95 billion) in Senegal to upgrade the Port of Dakar and build a container terminal as part of several projects being considered in the West African nation.

The company said it has won a 25-year concession from the Senegal government to manage the port facilities. It will initially invest about Dh490 million in infrastructure and equipment at the Terminal à Conteneur to more than double its capacity to 550,000 TEUs (twenty-foot equivalent container units).

The first phase of the project will be operational by the beginning of 2008 and completion is due by 2010.

In the second phase, DP World will develop and manage the new container terminal called Port du Futur. To be built at a cost of Dh1.46 billion, the facility will become operational in early 2011. Its annual capacity will be 1.5 million TEUs.

The Senegal project will be DP World's biggest port investment commitment in Africa. The Dubai firm is building a $300-million container terminal in Djibouti, which will open in late 2008 and create a transshipment hub in the East African nation. DP World also runs Djibouti's existing seaport and airport, while other Dubai companies manage customs operations and operate a free trade zone.

Several Dubai entities that form part of Dubai World, DP World's parent company, are planning to invest in Senegal, which is building a new $30-billion capital on its Atlantic coast.

Dubai investment will help the former French colony to establish much needed modern infrastructure.

The port concession follows an accord signed between Senegal and Jafza International, a unit of Dubai World, in December 2006 to set up an integrated Special Economic Zone (SEZ) in Dakar. The agreement is expected to be finalised soon.

"There is potential for development of a free zone affiliated to the new port at Dakar. We also see considerable potential for tour-ism in Senegal with its beautiful coastline and extensive national parks. We are looking at investing in hotels and other recreation facilities there," Dubai World chairman Sultan Ahmad Bin Sulayem said.

Jafza International acted as a consultant to the Senegal government in the drafting of the legal framework required to facilitate the creation of the SEZ.