Minister Defends Malindi Port Operations Amid Opposition Claims

Government Refutes ACT-Wazalendo's Claims on Malindi Port Operations
Sunday, March 2, 2025

In response to recent calls from the opposition ACT-Wazalendo party urging the government to cancel its agreement with French company Africa Global Logistic (AGL) for the operation of Malindi Port, the government has firmly rejected the proposal, highlighting the significant progress made since the partnership began in 2023.

Speaking to the media on Sunday, March 2, 2025, Minister for Infrastructure, Communications, and Transport, Dr. Khalid Salum Mohamed, criticized the claims made by the opposition as misleading. He emphasized that the government's decision is based on national interests and the welfare of the people, not influenced by the views of any individual or group. Dr. Khalid also stressed that while the government remains open to reviewing the contract if necessary, there is currently no justification for ending it.

The ACT-Wazalendo party, led by Ismail Jussa, had raised several concerns on February 27, 2025, including a decrease in port revenue, rising charges, and allegations of unfair labor practices, such as pay cuts and the exclusion of some employees from new contracts. However, Dr. Khalid defended the agreement, stating that the government’s actions are rooted in objective assessments rather than reactions to individual grievances.

According to the government, the partnership with AGL has delivered impressive results. Since the start of operations in September 2023, Malindi Port has seen a 41% increase in revenue, and the efficiency of loading and unloading cargo has also improved significantly. Under the terms of the agreement, AGL’s subsidiary, Zanzibar Mult Terminal (ZMT), took over operations for five years, ensuring smoother operations and better services.

Dr. Khalid also dismissed claims that the government had made poor financial decisions, such as spending 17 billion Tanzanian shillings on port equipment before the AGL agreement. He clarified that these investments were made as part of efforts to address congestion at the port and ensure sustainable growth. The equipment, including a Mobile Crane, has since been fully utilized to enhance operational capacity, he said.

The government also noted that the average waiting time for vessels has been reduced dramatically. Before the partnership, ships would spend between 20 to 40 days waiting offshore. However, after the new arrangement, waiting times were reduced to an average of 8 days, though the demand surge ahead of Ramadan temporarily increased waiting times to 18 days between January and March 2025.

Addressing concerns regarding increased port charges, Dr. Khalid explained that the fees were in line with the 2018 government guidelines. New charges, such as those for transporting containers from the port to the dry port, were previously non-existent but became necessary with the introduction of dry port facilities. Similarly, charges for crane services had been outlined but were not previously enforced.

Regarding employee compensation, Dr. Khalid assured that workers are now receiving higher salaries, with some, especially machine operators, seeing their pay raised from 600,000 to 800,000 shillings to 1 million shillings. The government is still reviewing pay adjustments for other categories of employees.

Zanzibar Ports Corporation (ZPC) Director, Ali Akif, reported that the average monthly revenue has doubled from 1 billion to 2 billion shillings since the AGL partnership began, resulting in a 41% increase in government earnings. The total revenue generated from September 18, 2023, to January 2025 stands at 29.3 billion shillings.

As of now, the government remains confident in the current arrangement and its capacity to meet the needs of both the port's operations and the broader national interest.