Construction of Dar es Salaam regional logistics center to cost Sh264 billion

Dar es Salaam. After about seven years of negotiations, the former Ubungo Bus Terminal is now being transformed into a regional commercial and logistics centre. The construction of the $114 million (about Sh264 billion) facility is expected to begin as early as next month after Ubungo Municipality was allowed to proceed with the project.

Speaking at a meeting to discuss the implementation of the project yesterday, Trade and Investment minister Kitila Mkumbo said it should have started earlier than now, considering its benefits to both the people and the government.

“This project will increase the revenue of the Ubungo Municipality thus enabling it to implement its development projects. We are satisfied with the capacity of the Chinese investor Linghang Group which our Chinese ambassador Mbelwa Kairuki followed up and said the company has great potentials. So, complete the remaining steps so that the implementation of the project can begin next month,” said Prof Mkumbo.

Prof Mkumbo reminded the Ubungo Municipal Council to avoid any form of bureaucracy to achieve implementation of major projects as policy and legal stability will help attract more investors.

The plan to change the use of the then bus terminal began in 2014 when the Dar es Salaam City Council signed an agreement to evaluate the security, commercial viability and investment in the China Commercial City, that will be importing Chinese goods for all East African countries.

In 2015, the city signed a contract to build the business centre which will last for 45 years but when it was demolished, it was transferred to Ubungo District Council which is going to implement it for 15 years.

“Don’t doubt the contract just because it was signed by former mayor Boniface Jacob who was from Chadema. When he signed, he was part of the government, so continue where he left off. We want councils to be economically viable and this is an example. After this there are other big projects in Kahama and Arusha,” he said. Explaining about the project, the chief executive officer of Linghang Group in the country, Ms Cathy Wang, said the centre will have four floors that will carry 2,000 shops, government offices as well as key institutions including financial institutions.

“If we are allowed to start construction, we will only take 15 months to complete it. We want this to be the centre for all important products from China for the East African countries. The trader will come here to place an order for the goods they want and get them without him going to China,” said Ms Cathy.

Dar es Salaam Regional Administrative Secretary, Hassan Rugwa said the project will help to alleviate the challenges of petty traders as it will provide enough space for them.

“In the past, when you mention petty trader, the general picture was a young boy who dropped from school but the situation is different now. The current petty traders are university graduates with masters degree and don’t be surprised to see PHD holders doing the same in the next after five to 10 years. This center provides a friendly environment for them,” he said.

Ubungo Mayor Jaffery Nyaigesha said the completion of the project will help them increase revenue but asked the minister to help them find other sources.

“The Mabibo market has a good opportunity to increase revenue for the council but we do not get anything there. We do not know how much is collected and where it is spent. We are looking forward to getting more than 25,000 jobs from this project,” he said.