Government targets Sh1.38 trillion from TPA in 2025/26, unveils massive expansion plan for Dar es Salaam, construction of Bagamoyo Port

Dar es Salaam. The government has set an ambitious revenue target of Sh 1.38 trillion from Tanzania Ports Authority (TPA) operations in the 2025/26 financial year as it rolls out a sweeping expansion and modernization strategy across the country’s seaports and inland waterways.

Presenting the Transport Ministry’s budget in Parliament, Minister Prof Makame Mbarawa outlined plans to handle over 6,300 vessels and nearly 33 million tonnes of cargo at various ports, including Dar es Salaam, Tanga, Mtwara, and those on Lakes Victoria, Tanganyika, and Nyasa.

Of these, 1,382 vessels will be deep-sea international ships, with an estimated gross registered tonnage (GRT) of 42.1 million. Ports are expected to handle 1.3 million twenty-foot equivalent container units (TEUs), with Dar es Salaam, Tanga, and Mtwara carrying the largest loads.

Dar es Salaam Port expansion

Dar es Salaam, which handles about 98 percent of the country's external trade, remains at the heart of the plan. According to Prof Mbarawa, the port’s current cargo throughput of 23 million tonnes is expected to rise to 30 million tonnes by 2030.

To meet this growing demand, the government will expand container handling capacity by constructing 10 new berths, increasing the number from the current 12 to 22. The port will also operate 24 hours a day to handle container vessels—an upgrade from the current 3-day turnaround time.

Further, a Single Receiving Terminal (SRT) with 15 oil tanks will be built, alongside enhancements in cargo handling facilities at Kurasini and rail infrastructure, including SGR and TAZARA links to the port.

Efforts to decongest Dar es Salaam will include expanding the Kwala Dry Port in Pwani Region to provide customs and logistics services in collaboration with TRA. Construction of the Ihumwa Dry Port in Dodoma will also begin after the feasibility study is completed.

The government has allocated Sh 600 billion to revamp the MGR railway and construct a new branch line linking Mpanda to the newly completed Karema Port on Lake Tanganyika.

This line, the minister said will be critical for cargo transport to and from the Great Lakes region, especially the DRC.

Greenlight for Bagamoyo megaport

One of the most transformative announcements was the government’s decision to begin construction of the long-awaited Bagamoyo Port.

Designed to accommodate post-Panamax vessels that cannot dock in Dar es Salaam, the port will be integrated with a 100-kilometre modern railway linking it to the Kwala Dry Port and will support operations in Bagamoyo’s Special Economic Zone.

In Tanga, construction of Berth No. 3 for container ships and infrastructure for petroleum transport at Raskazone will continue. Additionally, TPA will expand storage and handling areas at Mwambani.

In Mtwara, the government plans to build Kisiwa Mgao Port specifically for environmentally sensitive cargo like coal and cement. Infrastructure and road access to the main port will also be rehabilitated.

Inland ports and new ships

The government will continue upgrading Kigoma and Karema ports on Lake Tanganyika and construct four new 2,000-tonne cargo vessels through a public-private partnership. These ships will support mining logistics in Eastern DRC via Kalemie Port, which is also being upgraded.

On Lake Victoria, ports in Bukoba, Mwanza North, and South will be improved to accommodate the new MV Mwanza passenger and cargo ferry. On Lake Nyasa, construction of Mbamba Bay Port will continue, aiming to enhance trade with Malawi and Mozambique.

To reduce investment pressure on the government and enhance operational efficiency, Prof Mbarawa reiterated the state's commitment to involving the private sector in port development and management.

“With all these initiatives,” said the minister, “we aim to transform Tanzania into a regional logistics hub and gateway for trade in East and Central Africa.”