Tanzania bets big on ports and rail to cement role as regional trade gateway

The goal is to deliver efficiency, reduce transport costs and establish Tanzania as the natural entry point for land-linked countries across the region.

At the centre of this ambition is the modernisation and partial privatisation of the Dar es Salaam Port, where global operators such as DP World and India’s Adani Group have taken charge of key terminals.

According to Tanzania Ports Authority (TPA) director general Plasduce Mbossa, the reforms are already paying off.

“In the first year alone, government revenue from port activities rose by over 17 percent, and more than 50,000 direct and indirect jobs were created,” he told The Citizen.

“Integration of the SGR with inland facilities like Kwala Dry Port is a game-changer. It doubles cargo capacity, cuts travel time by two-thirds, and reduces logistics costs by up to 50 percent,” he added.

The $247 million Kwala Dry Port in the Coast Region is emerging as the backbone of Tanzania’s inland logistics. Designed to decongest Dar es Salaam Port, it provides a faster clearance system and hosts dedicated plots for regional partners such as Rwanda, Burundi, Zambia and the Democratic Republic of Congo (DRC).

About 40 percent of cargo passing through Dar es Salaam originates from the DRC, acoording to vice chairman of the Tanzania Shipping Agents Association (Tasaa), Mr Daniel Malongo.

“Kwala is essential for managing this flow and ensuring smoother trade between East and Central Africa,” he said.

Industry stakeholders agree that without full use of Kwala, congestion in Dar es Salaam will worsen as cargo volumes increase under private port operators.

Central to Kwala’s efficiency — and to Tanzania’s wider strategy — is the standard gauge railway (SGR). The project, which runs parallel to the ageing metre-gauge Central Line, is set to revolutionise freight transport by enabling faster, heavier and more reliable cargo movement.

Tanzania and Burundi are also working on a joint SGR line to extend the network beyond national borders, creating a cost-effective trade corridor that strengthens regional integration.

Another key element is the planned upgrading of the Tanzania Zambia Railway (Tazara) line, built in the 1970s to link Dar es Salaam with Zambia. Once converted into SGR, it will provide a seamless connection to southern Africa, enhancing Tanzania’s regional reach.

While Dar es Salaam Port is the flagship, investments are also flowing into Tanga, Mtwara and lake ports on Victoria, Tanganyika and Nyasa. Upgrades include berth expansions, new cargo yards, ICT systems and modern handling equipment.

Collectively, these improvements are aimed at raising cargo throughput and reducing bottlenecks across the national logistics chain. Transformative road and bridge projects — including the JP Magufuli Bridge across Lake Victoria — complement the investments, ensuring smooth connections between ports, rail lines and regional highways.

Economists say geography gives Tanzania a natural advantage, but sound leadership will determine whether the country can translate infrastructure into lasting influence.

Dr Abel Kinyondo of the University of Dar es Salaam observed: “Surrounded by eight countries, most of which are landlocked, Tanzania plays a crucial role in regional connectivity. With good governance and transparent policies, it can become a reliable partner and facilitator of regional economic growth.”

He added that Tanzania’s infrastructure push is not just about faster trade routes, but about building strong institutions and sustainable systems.

“This requires efficient border processes, accountability in public spending, and policies that make investment attractive,” he said.

The model adopted by Tanzania is one of shared responsibility. The government builds core infrastructure such as quays, rail lines and access roads, while private operators are tasked with managing and upgrading terminals.

Mr Mbossa believes this approach ensures efficiency and scalability. “By integrating ports, dry ports and rail systems, we are reducing congestion, accelerating cargo transit, and enhancing regional trade efficiency,” he said.

Tanzania’s logistics vision extends well beyond immediate infrastructure projects. The country is deliberately crafting a long-term ecosystem that blends investment, governance and geography to anchor its role as East and Central Africa’s indispensable trade partner.

“The integration of SGR with dry ports like Kwala marks a pivotal shift in East Africa’s logistics landscape,” Mr Mbossa said. “It’s about making Tanzania the natural gateway to the region.”

With cargo volumes rising and neighbouring economies expanding, the stakes are high.