DAR ES SALAAM – Tanzania is set to transform its logistics operations as cargo at the Port of Dar es Salaam prepares to move directly via the Standard Gauge Railway (SGR) by the end of this month.
The initiative is expected to ease congestion at the country’s busiest port, streamline container movement, and lower logistics costs for traders.
The integration of the SGR with port operations allows containers to be loaded directly onto freight trains for transport to inland commercial hubs without the need for intermediate handling.
This eliminates the current practice where cargo must first be transferred to the Pugu Inland Container Depot before being loaded onto SGR wagons, a process that adds time and cost.
Transport Minister Professor Makame Mbarawa said that the new arrangement will improve efficiency across the supply chain.
“By the end of this month, cargo will start moving directly from the port through the SGR to inland destinations,” he said, noting that removing double handling will cut operational costs and speed delivery to key commercial and logistics hubs.
Currently, much of the cargo leaving the port is transported on the older metre-gauge railway (MGR), which has lower capacity and slower speeds compared to the SGR.
Prof Mbarawa also highlighted upgrades to the Tanzania–Zambia Railway Authority (TAZARA) line, which will increase train speeds from 32 km/h to approximately 80 km/h, strengthening trade with regional and international partners, including China.
The Parliamentary Standing Committee on Infrastructure reviewed the port’s performance over the past nine years, noting improvements since major reforms began in June 2017.
Between 2020/21 and 2024/25, the number of vessels handled increased from 1,512 to 1,990, while total cargo volumes rose from 16.27 million tonnes to 27.76 million tonnes.
During the same period, revenue collected by the Tanzania Ports Authority (TPA) grew from TSh 896.95 billion to TSh 2.031 trillion, reflecting strong financial performance supported by both TPA and private operators.
Operational costs also fell significantly, from TSh 331.64 billion before private-sector participation to TSh 174.76 billion after some berths were managed by private operators. Despite these gains, challenges remain, including limited berths, aging infrastructure, and insufficient space for cargo handling and storage.
To address this, TPA is constructing two new 500-metre berths at Malindi Wharf and plans to build ten additional berths. Expansion is also underway at the Kurasini (Ex-EPZA) logistics area, which will have the capacity to handle up to 700,000 containers.
Committee Chair Selemani Kakoso commended TPA’s progress but urged the authority to explore revenue sources beyond traditional port operations. He emphasised the importance of improving service quality to sustain trade with neighbouring countries, particularly the Democratic Republic of Congo (DRC).
“We observed strong cooperation with Congo during our recent visit. Enhancing service delivery is essential to ensure Congolese traders continue using our port,” he said. Kakoso also called for closer coordination between TPA, TANROADS, and the Tanzania Railways Corporation (TRC) to strengthen the transport value chain and support economic growth.
TPA Director General Plasduce Mbossa explained that direct access to the SGR will significantly improve cargo clearance. Currently, double handling at Pugu Inland Container Depot slows transit and increases costs.
With the new link, containers will move directly from Dar port to inland depots and destinations such as Dodoma. The metre-gauge railway will continue serving western routes to Kigoma and Zambia, while the SGR focuses on central and inland cargo.
The SGR integration is expected to enhance efficiency, reduce transit times, and reinforce Tanzania’s position as a regional logistics hub, supporting trade integration across East and Central Africa.
