Tanzania Expands Dar es Salaam Port with $45.7M Petroleum Storage Facility to Boost Trade and Efficiency
Tanzania has initiated a strategic project to reinforce transport and logistics operations at the Port of Dar es Salaam, one of the country’s most critical maritime gateways and a key hub for East Africa.
On 3 March 2026, President Hassan laid the cornerstone for the development of modern petroleum storage facilities, describing the project as a strategic investment designed to modernize port operations and resolve long-standing challenges in fuel receipt and storage.
The project forms part of the government’s broader plan to strengthen national transport and logistics infrastructure, enhance cargo handling, and position Tanzania as a regional trading hub.
Officials say the facility will expand the port’s capacity to handle petroleum shipments and improve the flow of energy products to industries, businesses, and households across the country.
Construction of the new storage facility began in August 2024 and is currently approximately 41% complete.
The government expects the project to be finished by February 2027. To date, about $45.7 million (roughly 117.1 billion Tanzanian shillings) has been paid to the contractor and project consultants overseeing construction.
When completed, the facility will feature 15 state-of-the-art fuel storage tanks with a combined capacity of 378,000 cubic metres.
The tanks will store diesel (162,000 cubic metres), petrol (135,000 cubic metres), and Jet A1 aviation fuel (81,000 cubic metres).
This expansion will significantly increase the port’s ability to meet rising fuel import demands, benefiting both Tanzania and neighboring countries that rely on the port for energy imports.
Currently, congestion caused by limited storage and slow cargo handling is a major challenge at the port.
Oil tankers face an average waiting time of 22 days to discharge cargo. The new infrastructure is expected to reduce this to approximately seven days, improving port efficiency and lowering demurrage costs, which can reach up to $25,000 per day when vessels are delayed.
Government officials note that faster cargo handling will also help stabilize domestic fuel prices.
Delays and demurrage fees are often passed on to consumers, so improving logistics efficiency will directly benefit Tanzania’s economy.
President Hassan emphasized that ongoing port reforms, including greater private sector involvement, have already increased cargo handling capacity and government revenue.
She instructed the Ministry of Energy to strengthen the country’s national strategic petroleum reserves to better shield Tanzania from global oil market volatility.
Transport Minister Makame Mbarawa highlighted that efforts are underway to integrate port operations with other transport infrastructure.
This includes connecting the port to the Standard Gauge Railway, which will soon transport cargo between Dodoma and Dar es Salaam, as well as the development of new dry ports in Morogoro, Dodoma, and Shinyanga to alleviate pressure on the main seaport and improve nationwide cargo distribution.
The Tanzania Ports Authority is implementing the project as part of the country’s Port Master Plan.
Officials say the investment will boost logistics capacity, attract more shipping lines, increase trade volumes, and strengthen Tanzania’s position as a major transport and logistics hub in East Africa and for landlocked neighboring countries.
