Rising dynamics: How SGR trains set the stage for transport innovation in Tanzania

Dodoma. The launch of the Standard Gauge Railway (SGR) train between Dar es Salaam and Dodoma marks a transformative milestone in Tanzania’s transportation sector.

This development introduces new opportunities for improved connectivity and economic growth while also challenging existing modes of transport to innovate and adapt.

The SGR train promises to revolutionise travel between Dar es Salaam and Dodoma. Covering the distance in just about three hours, it offers a significant reduction in travel time compared to buses, which take between eight and ten hours.

This efficiency is a boon for both personal and business travellers, offering more flexibility and better use of time and facilitating easier movement of people, boosting business activities.

Faster travel times can expand business reach, improve supply chain efficiency, and open new markets.

Additionally, increased tourist footfall can boost local businesses and hospitality services, while the operation and maintenance of the SGR train create job opportunities, contributing to the local economy.

 Aviation: Competition or opportunity?

The aviation sector, offering the fastest travel option between Dar es Salaam and Dodoma (45 minutes to 1 hour), now faces competition from the SGR train.

However, this competition can also drive improvement and growth within the sector. Air Tanzania Company Limited (ATCL) CEO, Mr Ladislaus Matindi, believes the new transportation channel brings positive competition in the sector.

“We still believe our air travellers will remain loyal. Yes, it’s a new competitor close to our service, especially in terms of time; but it cannot match us because our flights (Dar es Salaam to Dodoma) take 45 minutes to one hour, providing our customers with a faster option.”

However, experts believe airlines might reconsider pricing strategies to remain competitive, enhance customer experiences, and offer better services.

There is also potential for intermodal collaboration, such as integrated ticketing systems, providing seamless travel options for passengers connecting to flights after their train journey.

Mr Matindi said it is the opportunity for them to have a discussion with their Tanzania Railway Corporation (TRC) counterparts to make it easier for customers.

“If they come from Dodoma by train en route to Mwanza, they can just proceed with the same ticket without being bothered,” said Mr Matindi.

An aviation expert, Mr Juma Fimbo, stated, “I believe those who might be affected are luxury bus owners, as their customers may opt for the train. But for air travel, I believe its customers will continue to be very loyal due to its prestige.”

 Buses feel the pinch

Buses have long been the preferred mode of transport for many travellers between Dar es Salaam and Dodoma and other regions.

However, the SGR train necessitates adaptation for bus operators to remain relevant.

The Tanzania Bus Owners Association (Taboa), Secretary General, Mr Priscus John, highlighted, “The impact is massive; it is greatly affecting us already.”

“We really need to be looked at in terms of taxes because we also provide employment and contribute significantly to our country's development,” he lamented in an interview with The Citizen.

According to him, over 200 buses have already been affected, risking the jobs of 400 drivers and conductors. Fuel stations servicing these buses are also feeling the impact.

Ticket agents for popular buses (Shabiby, ABC, and BM) in Dodoma have reported a significant drop in customers.

“Indeed, the number of passengers has suddenly decreased, although not drastically,” says one of the Shabiby bus agents.

“For the first time, we are allowing buses to leave the station without enough passengers,” she said in an interview in Dodoma.

An ABC agent mentioned, “We are already feeling the pinch of this train. Previously, tickets were always in high demand, but now they remain unsold, and customers can get a bus ticket at any time, unlike before.”

On this, an expert in transportation, Ms Marilyne Mtumbaze, suggested that bus operators might target budget-conscious travellers who prioritise cost over time, offering lower fares compared to the train and flights.

“They can also diversify their services, such as luxury buses with added amenities or focussing on routes not covered by the SGR. Improving services, like offering free Wi-Fi, more comfortable seating, and better customer service, is another strategy,” she suggested.

Additionally, she noted, there is potential for partnerships with SGR services for last-mile connectivity to passengers travelling to areas not directly served by the train.

Ms Mtumbaze said collaborations between the railway and aviation sectors can enhance intermodal transport, offering seamless travel experiences, while bus operators can explore niche markets and improve service quality to stay competitive.

"It's a good moment that all stakeholders should work together to create a robust and competitive transportation ecosystem, ultimately benefiting the people and the economy of Tanzania.”

She said, with strategic adaptations and collaborations, the transportation sector can evolve to provide better services and ensure sustainable growth for all stakeholders involved.

Other countries experience

Looking at other countries, there are examples of how transportation niches have managed to coexist and thrive.

In countries like Japan, the Shinkansen (bullet train) runs in harmony with an extensive network of buses and flights, providing comprehensive travel options for passengers.

The integration of these services through unified ticketing systems and coordinated schedules ensures that passengers have a seamless travel experience, enhancing overall connectivity.

Similarly, in Europe, high-speed trains coexist with low-cost airlines and bus services, each catering to different segments of the market.

This balance ensures that travellers have multiple options depending on their preferences for cost, speed, and convenience.

With strategic adaptations and collaborations, Tanzania’s transportation sector can evolve to provide better services and ensure sustainable growth for all stakeholders involved.