News Release

15th May 2008

TICTS Announces New Chairman of the Board


[15 May 2008 – Dar es Salaam, Tanzania] The Board of Tanzania International Container Terminal Services Ltd. (TICTS) announced that following a Board meeting held on Thursday, 8 May, John Meredith, Group Managing Director of Hutchison Port Holdings (HPH), would replace the Hon. Nazir Karamagi as Chairman of the Board with immediate effect.

HPH is the world’s leading port investor, developer and operator with interests in a total of 292 berths in 47 ports, spanning 24 countries. With over 30,000 employees, the Group operates container terminals in five of the eight busiest container ports in the world.

Commenting on TICTS’ performance, John Meredith said, “I am encouraged by the strong growth achieved under the management of TICTS at Dar es Salaam. Container volumes grew from 123,000 TEU (Twenty-Foot Equivalent Unit) in 2000, the year of concession, to 344,000 TEU in 2007. TICTS has achieved an annual growth in excess of 16 percent year-on-year compared with 4 percent growth before the concession. This achievement is particularly impressive given the space constraint in a port built for an optimal capacity of 250,000 TEU. Such achievements are made possible by a strong team of 500 employees working at TICTS.”

TICTS has already invested US$21 million since the start of the concession, a figure that exceeds the original investment plans at the time of privatisation.

David Cotty, Chief Executive Officer of TICTS said, “Since the start of the concession, TICTS has brought in 11 RTGCs (Rubber-tyred Gantry Cranes), 4 Reachstackers, 2 Mobile Harbour Cranes, 17 terminal tractors and 2 empty handlers. A further US$60 million will be invested in equipment and civil improvements over the next 5 years. The Government’s approval on the extension of the concession contract to 2025 is crucial for the long-term development of the port and has made these investments possible.”

Mr. Cotty further commented on the operational challenges exist in a capacity-constrained facility, “Throughout 2007, and despite TICTS having rights to handle all cellular container vessels, we allowed TPA to handle container ships on an on-going case by case basis, where space would not allow TICTS to do so and in order to ease congestion. This matter has been discussed constructively with TPA and will continue to be addressed alongside a number of issues as part of the current dialogue on the contract.”

“Space remains a critical issue and with the peak season about to start, there is a need for TICTS to have access to more container stacking space and for measures to be taken to avoid containers being kept in the port for extended periods of time,” Mr. Cotty added.

Looking ahead, Mr. Meredith said, “TICTS remains committed to the development of the container terminal facility with an effort to make Dar es Salaam the most efficient port in East Africa.” He also called for all stakeholders to work constructively together to act on viable solutions to facilitate the efficiency of the port operation, saying “we are prepared to work with all parties to overcome any outstanding issues that TICTS faces.”