DP World said on Sunday it had won a 30-year management and development concession for a greenfield, multi-purpose port in the Democratic Republic of the Congo (DRC).
The Dubai-owned port operator will set up joint venture with the Central African country’s government to manage and invest in the Atlantic Coast’s Port of Banana, it said in a bourse statement.
An initial $350 million will be invested to construct a 600-metre quay and a 25-hectare yard extension with a container capacity of 350,000 TEUs (twenty-foot equivalent units) and 1.5 million tons for general cargo.
Congo has long looked to develop a port along its less than 50 km (30 miles) of coastline to handle larger vessels than those that can reach its existing shallow ports up the Congo River.
Construction is expected to start this year and take two years to complete. A total project cost of over $1 billion, spread over four phases, will be dependent on market demand.
DP World will control 70 percent of the joint venture with the government of the DRC retaining the remaining 30 percent, the statement said.
The award includes an option to extend the concession for an additional 20 years.