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Home Lead Story

Tanzania expands air and rail capacity to support economic ambitions

Tanzania Monitor Reporter by Tanzania Monitor Reporter
February 27, 2026
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Tanzania expands air and rail capacity to support economic ambitions
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DAR ES SALAAM: Tanzania is accelerating investment in aviation and transport infrastructure as part of a broader strategy to transform the East African economy and support its ambition of becoming a one-trillion-dollar economy by 2050, officials said.

Speaking at Julius Nyerere International Airport in the commercial capital Dar es Salaam, Chief Government Spokesperson and Permanent Secretary in the Ministry of Information, Culture, Arts and Sports Gerson Msigwa said the national carrier, Air Tanzania Company Limited (ATCL), had posted strong revenue growth in the 2024/25 financial year.

ATCL generated 157.69 million U.S. dollars in revenue, an increase of 87.88 per cent compared with the previous year, he said. The airline also contributed 52.35 billion Tanzanian shillings in taxes, fees and statutory charges to the government.

Msigwa said the government plans to acquire eight additional aircraft, including four Dash 8 Q400 turboprops currently at various stages of procurement. Once delivered, ATCL’s fleet will expand to 24 aircraft, a move officials say will bolster tourism, trade and investment by improving regional and international connectivity.

Passenger numbers carried by the airline rose from 822,232 in 2021/22 to 1,178,025 in 2024/25. Between July and December 2025 alone, ATCL transported 709,432 passengers. Cargo volumes increased from 2,567 tonnes to 6,919 tonnes over the same period, supported by the addition of a dedicated freighter and the expansion of routes.

Beyond aviation, Tanzania has stepped up airport infrastructure spending. Msigwa said 13 modern screening machines were procured in the 2024/25 and 2025/26 fiscal years to enhance safety and service standards.

KEY HIGHLIGHTS:

• The national carrier, Air Tanzania Company Limited, reported strong revenue and passenger growth, prompting plans to expand its fleet.

• Infrastructure upgrades continue at airports, including at Julius Nyerere International Airport, to improve capacity and safety.

• Rail modernisation led by the Tanzania Railways Corporation aims to enhance trade efficiency and transport connectivity.

• Maritime expansion of the Port of Dar es Salaam seeks to increase cargo capacity and regional trade.

• Development of the Kurasini Logistics Terminal will improve container storage and logistics efficiency.

• The broader goal is to strengthen trade corridors and tourism, supporting long-term economic ambitions.

ATCL starts direct Dar–Accra service

Between 2022/23 and 2024/25, projects worth 1.154 trillion Tanzanian shillings were implemented to expand airport capacity for aircraft, passengers and cargo. Development works are under way at Arusha, Moshi, Mwanza, Serengeti, Kyabajwa–Kagera, Msalato–Dodoma, Shinyanga, Tabora, Kigoma and Sumbawanga airports.

Rail transport has also seen significant upgrades. The electric Standard Gauge Railway (SGR) has improved trade and tourism efficiency, while the Tanzania Railways Corporation has operated without government subsidies since December 2025, Msigwa said.

For the metre gauge railway network, 100 freight wagons are being procured and eight locomotives added, six of which are being assembled at the Pugu workshop.

On the SGR network, authorities have acquired 17 electric locomotives, 10 electric train sets, 89 passenger coaches, 1,430 freight wagons and 24 maintenance machines, alongside the rehabilitation of existing assets.

In the maritime sector, the government has launched an expansion of the Port of Dar es Salaam, including the construction of 10 new berths and 15 fuel storage tanks. The first phase is scheduled to begin in June 2026.

The upgrades are expected to raise the port’s handling capacity from 32 million tonnes to 50 million tonnes annually, strengthening Tanzania’s role as a regional trade gateway for landlocked neighbours in East and Central Africa.

Authorities are also developing the Kurasini Logistics Terminal, a 210,000-square-metre facility with capacity to store up to 700,000 containers, aimed at easing congestion and improving the handling of perishable goods.

The government says the coordinated expansion of air, rail and port infrastructure is central to unlocking trade corridors and tourism flows across the region. Tourist arrivals rose by 10 per cent from 5.3 million in 2024 to 5.9 million in 2025, reflecting the impact of improved connectivity and sustained investment, officials said.

Tags: 2050 development planAir TanzaniaATCL revenueaviation sectorDar es SalaamEast Africa economyEconomic GrowthJulius Nyerere International AirportTanzaniaTransport Infrastructure

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