Samia: Use Tanga to relieve Dar es Salaam Port

Dar es Salaam. President Samia Suluhu Hassan has directed the Ministry of Energy to revise procedures to allow fuel dealers serving the northern zone to transport the product via Tanga port, to ease congestion at the Dar es Salaam port.

She made the directive during a ceremony to lay the foundation stone for a new liquefied petroleum gas (LPG) storage facility owned by GBP Company Limited on Saturday, March 1, 2025.

The $50 million (Sh127.5 billion) facility, located in Tanga Region, has a storage capacity of 30,000 litres of LPG, providing crucial support to the country's clean cooking energy policy.

President Hassan noted the ongoing backlog of ships at Dar es Salaam port waiting to offload fuel, emphasising that businesses should make use of storage facilities in Tanga to alleviate congestion at Dar es Salaam.

“GBP is doing well distributing fuel to the northern zone, but some traders still rely on Dar es Salaam port. Despite having a large storage facility there, the company has opted to build another in Tanga Region,” she said.

“I have made decisions allowing fuel dealers serving the northern zone to import through Tanga port. However, the Ministry of Energy has been slow to implement them. Please address this,” she directed.

The President also highlighted the importance of utilising investments in infrastructure, such as the ongoing construction of a road linking Tanga to Singida and other areas, insisting that proper use of these facilities will help reduce long distances.

President Hassan expressed her gratitude for the positive feedback from oil investors, stating that their satisfaction with business policies speaks volumes about progress.

“When we hear from you, we believe things are moving in the right direction. We will continue to create a favourable environment for business to thrive,” she said.

Deputy Minister for Energy, Ms Judith Kapinga, explained that the LPG terminal is part of the government’s clean cooking energy agenda for the northern zone.

She commended Tanga as a key hub for fuel distribution and praised GBP’s efforts, noting that tax exemptions on machinery for manufacturing LPG cylinders have attracted more investments.

“The growing market for clean cooking energy is drawing more investors to establish industries. We congratulate GBP for their continued investment in the country,” she said.

GBP Tanzania Ltd chief executive officer (CEO), Mr Badar Sood, emphasised that the LPG terminal supports the government’s clean cooking agenda and will provide energy to the northern zone.

The $50 million project is expected to create over 1,000 jobs and contribute to the country’s economic growth.

Mr Sood added that the company’s investment in Tanzania has grown over the past 25 years, with government revenue payments rising from between Sh600 million and Sh1 billion per year to Sh25 billion per month.

He affirmed the importance of investment in the oil sector for national security and environmental protection, and the company’s commitment to supporting clean cooking energy initiatives.

“Our investment is a result of the favourable business environment and policies in the country,” he said.