Development of deepwater container port at Banana, DRC
Africa Ports & Ships
British International Investment (BII) has committed up to $35 million alongside DP World into the development of a deepwater container port at Banana in the Democratic Republic of the Congo (DRC).
The Banana port deal is an extension of the partnership that commenced with the modernisation and expansion of ports in Senegal, Egypt and Somaliland.
The new port will serve as the maritime gateway for containerised imports and exports in the DRC, providing the country with logistical independence and ensuring sovereignty over its foreign trade.
BII, the UK’s development finance institution and impact investor, has committed to invest up to $35 million towards the development of the first phase of the new DRC container port.
The DRC currently relies on the port of Matadi, which lies 150km upstream of the Congo River, through which 90 per cent of its imports and exports of containers and general cargo is handled. The Matadi port does however have limitations on the size of ships it can accommodate, due to the Congo River’s depth and width that create challenges on larger vessels safely navigating the river to access the port.
The DRC is Africa’s second largest country and the fourth most populous on the continent. The Port of Banana will become the country’s first deepwater container port with an initial container capacity of 450,000 TEU annually. By enhancing the DRC’s direct access to international markets, it will unlock the country’s international trading potential for the benefit of millions of its people.
The commitment to the Port of Banana is an extension of the partnership between BII and global ports and logistics operator, DP World, that commenced with the modernisation and expansion of ports in Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland) in 2021.
As with the other ports in the partnership, BII will be a minority investor in the new port.
The three ports under the original partnership agreement between BII and DP World will improve access to vital goods for approximately 35 million people, support 5 million jobs (including the creation of 138,000 new ones) and enable an additional $51 billion to total trade by 2035, says BII.
Additionally, it adds, the three ports will reduce further logistics costs, generate employment, transform lives, and stimulate economic growth across these markets and the continent.
Unlocking trading potential is a key driver of economic growth in African economies.
Port of Banana
With a draught of 17.5m, the Port of Banana will receive large container vessels from around the globe and will become a gateway for imports and exports of containers in the DRC.
These efficiencies are expected to cut the cost of trade in DRC by 12 per cent, says BII. Its development will enable the creation of approximately 85,000 jobs and c. $1.12bn in additional trade and $429m in increased economic outlook – equivalent to a 0.65 per cent increase in the DRC’s GDP, according to an evaluation commissioned by BII.
The port is being developed in multiple phases and its capacity is expected to gradually increase over time. It will be connected to a network of additional infrastructure, including a free zone and multimodal logistics infrastructure to the country’s largest urban centres.
These include Kinshasa and its almost 17 million inhabitants, via the cities of Boma and Matadi. The 578km Banana-Matadi-Kinshasa trade corridor is home to about 54 million people, who will benefit economically from the new port.
As the single maritime window for all containerised goods transported by sea in the DRC, the port will provide the country with logistical independence and ensure sovereignty over its foreign trade.
The Port of Banana will greatly improve economic welfare for the lowest-earning rural households in the DRC. About one-third of the new jobs supported by the trade through the port are expected to be in agriculture, benefiting thousands of farmers and sector workers.
Increased containerised trade in Western DRC will also make essential imported goods like clothing, textiles, food, pharmaceuticals, and consumer products cheaper and more accessible.
“This investment from BII will help transform DRC’s economy, establishing the country as a major trading hub on the continent, and providing a significant boost to local sectors from infrastructure, logistics and green energy,” said the UK Minister for Africa, Lord Collins of Highbury.
“Today’s announcement is a brilliant example of the UK-DRC partnership in action, working together to increase trade opportunities and drive sustainable economic growth that creates full and productive employment for many”.
Chris Chijiutomi, Managing Director and Head of Africa for BII, said the development impact case for investing in ports is irrefutable.
“Africa has a sixth of the world’s population, but accounts for just 4 per cent of global containerised shipping volumes. Ports are vital to the long-term prosperity and wellbeing of countless people across the continent.”
According to Chijiutomi, the Port of Banana will play a major role in supporting the economic aspirations of millions living in DRC. “This investment forms part of BII’s ongoing commitment to investing in key sectors in Africa, with further projects under development in the region.”
History
The port of Banana dates from the 19th century when it developed in part to serve the slave trade. Following the Conference of Berlin in 1884-85, the Congo Basin came under the control of Belgium’s Léopold II and the little port near the mouth of the mighty Congo River became the main Belgian naval base in Africa which continued until 1960. Today the Chinese are said to have an influence in this facility.
The original port was established in Banana Creek on the north bank of the Congo River, separated from the ocean by a spit of land 3km long and between 100 and 400m wide – see image. The small port is on the creek side of this spit in coordinates: 6°1′S 12°25′E.
The original port has a single 75m long wharf with a depth alongside of 5.18m, equipped with a couple of small cranes and several small jetties. Upriver at a distance of about 4km is an oil terminal to which tankers discharge their products while at anchor in the creek.
Work on the development of the new deepwater port and container terminal with an initial 600m long quay and draught alongside of -17.5 metres commenced in 2002 with an estimated investment of US$ 1.2 billion. This will have a significant effect on Banana and the DRC generally, turning a sleepy backwater port into a major central African maritime venture but having a somewhat less advantageous effect on the DRC’s only other port of Matadi.