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Tanzania plans 16.1tr port expansion as cargo surges ahead of forecast

Dar es Salaam Port handled 33.7 million tonnes in 2025/26, reaching 2030/31 targets years early and forcing urgency on infrastructure investment.

Tanzania's principal port at Dar es Salaam handled 33.7 million tonnes of cargo in the 2025/26 financial year, up from 27.7 million tonnes in 2024/25, according to the Tanzania Ports Authority (TPA). The 21.7 per cent annual increase has forced the country to accelerate infrastructure expansion plans, as volumes have already reached levels originally projected for 2030/31.

The TPA has outlined an estimated 16.1 trillion shilling investment programme covering Dar es Salaam, Tanga and Mtwara ports, inland dry ports and logistics corridors, TPA Director General Plasduce Mbossa said in an exclusive interview. Of this total, 11.2 trillion shillings is expected to come from TPA revenues, including revised charges, while 4.9 trillion shillings will be mobilised from private investors through Public-Private Partnership arrangements.

Several projects are already under way. An oil storage facility at Dar es Salaam valued at 678.6 billion shillings was 54.8 per cent complete by October 2026, with completion expected in March 2027. Once operational, the facility is projected to reduce average oil-vessel service time from 10 days to three days. Further south, Kisiwa Mgao Port in Mtwara is being expanded to handle dry bulk cargo such as coal and clinker, with the 434.5 billion shilling project 53.97 per cent complete and scheduled for completion in January 2028.

At Dar es Salaam, the TPA is preparing to add four container berths numbered 12 to 15, which are expected to raise annual container-handling capacity to 1,350,000 twenty-foot equivalent units. By October 2026, procurement requirements for consulting and contractor services were being prepared. A first phase of Bagamoyo Port is also in preparation, with the TPA starting work on procuring a consultant and contractor for dredging the ship access channel.

Port infrastructure expansion has wider economic consequences. Without adequate capacity and facilities, cargo delays can tie up working capital for importers, disrupt raw material supplies to manufacturers, and prevent exporters from meeting delivery commitments. Transporters, customs agents, warehouse operators and service providers across supply chains depend on efficient cargo movement. Lower logistics costs could ease pressure on consumer prices, though the TPA said improvements are neither automatic nor guaranteed.

The real test of the investment programme will be whether it delivers measurable improvements in cargo capacity, vessel service times, handling efficiency and the movement of goods to their destinations, the TPA said. Transparent financial reporting will be essential in demonstrating how resources are used and whether projects achieve their intended objectives.