By Business Insider Reporter
The long-awaited Bagamoyo Port project has taken a decisive step forward after the Tanzania Ports Authority (TPA) signed a Memorandum of Understanding with Africa Global Logistics (AGL) Tanzania Ltd, a subsidiary of the global shipping giant MSC Group.
The agreement – signed on December 6, 2025 at TPA Headquarters in Dar es Salaam by TPA Director General Plasduce Mbossa and AGL President Philippe Labonne – paves the way for the design, construction and operation of three new state-of-the-art berths at Bagamoyo, as well as two additional berths at the Port of Dar es Salaam.
Bagamoyo Port has been one of East Africa’s most debated infrastructure projects over the past decade. Initially proposed in 2013 as a mega deep-sea port with special economic zones, the project stalled amid financing disagreements and concerns over contractual terms.
Its revival – now under a phased, more commercially viable model – signals Tanzania’s determination to reposition itself as a major maritime logistics hub in the Indian Ocean trade corridor.
TPA Director General Plasduce Mbossa said the MoU marks “a clear signal of readiness” to commence works on the long-delayed port.
“We expect construction of the first three modern berths at Bagamoyo to begin as early as January. We welcome other local and international investors to join the project, which aims to transform Tanzania’s port operations,” he said.
The new Bagamoyo facilities will be part of a larger plan to develop 28 modern berths at full completion, positioning the port to handle some of the region’s largest vessels and cargo volumes.
Why AGL is betting big on Tanzania
AGL President Philippe Labonne said the company’s decision to invest in Tanzania reflects confidence in the country’s political stability, security environment and strategic geographic position.
“Tanzania is developing rapidly, with a young and dynamic population and a positive investment outlook. It is also a natural gateway into Africa and global markets. Our partnership with TPA will unlock many opportunities, including job creation, which is essential for national development,” he noted.
AGL, formerly Bolloré Transport & Logistics and now part of MSC, is one of the world’s leading logistics companies, offering multimodal transport, clearing and forwarding, port operations and supply-chain solutions across mining, oil and gas, food, and humanitarian sectors.
Three years to deliver a new port
Construction of the three Bagamoyo berths will take 36 months, with AGL leading the design and build phase. The company’s experience in managing complex port and logistics projects across Africa is expected to help accelerate implementation – a key concern given the region’s growing demand for efficient maritime infrastructure.
In addition to Bagamoyo, the MoU gives AGL a role in developing two new berths at Dar es Salaam Port, aimed at easing congestion and improving turnaround times for vessels.
A new maritime era for Tanzania
The latest agreement strengthens Tanzania’s ambitions to compete with regional ports such as Mombasa (Kenya), Berbera (Somaliland), and Durban (South Africa) in handling international trade.
Bagamoyo’s strategic advantages include; deep-sea capacity, allowing docking of ultra-large container vessels, proximity to industrial zones planned for the Bagamoyo area and direct access to Northern and Central transport corridors, linking Tanzania with Rwanda, Burundi, Uganda, Zambia and eastern DRC.
If delivered on schedule, the Bagamoyo project is expected to:
- Boost Tanzania’s cargo-handling capacity.
- Attract manufacturing and logistics investments.
- Strengthen MSC’s shipping ecosystem across East Africa.
- Create thousands of direct and indirect jobs.
A long road ahead – but momentum has returned
After years of uncertainty, the partnership between TPA and AGL signals renewed momentum and a more pragmatic approach to delivering one of Tanzania’s largest infrastructure projects.
TPA’s Mbossa says the government is now fully committed to delivering a port “fit for the future”. With global shipping lines seeking deeper, more efficient ports along the Indian Ocean, Bagamoyo may finally be on course to become the strategic maritime gateway Tanzania envisioned more than a decade ago.
