EVERY tonne of cargo passing through Tanzania’s ports tells a story of expanding trade, growing business opportunities and an economy increasingly connected to regional and international markets. Yet behind this progress lies a pressing question: can the country’s port infrastructure keep pace with the speed of growth?
At the centre of this challenge is Dar es Salaam Port, Tanzania’s principal maritime gateway, where cargo volumes have risen sharply. The port handled 33.7 million tonnes in the 2025/26 financial year, up from 27.7 million tonnes in 2024/25. The additional six million tonnes represent growth of approximately 21.7 per cent within a single year.
More strikingly, this volume had initially been projected for 2030/31 under the Tanzania Ports Authority (TPA) ports master plan. Achieving that milestone years ahead of schedule demonstrates the strength of maritime activity, while exposing the urgency of expanding infrastructure to accommodate changing trade demands.
The figures and details of ongoing and planned projects were outlined by TPA Director General Plasduce Mbossa during an exclusive interview. They reveal an ambitious investment programme intended to strengthen the country’s maritime gateways and supporting logistics infrastructure.
Estimated at 16.1tr/-, the programme covers Dar es Salaam, Tanga and Mtwara ports, inland dry ports and logistics corridors. Of the total, 11.2tr/- is expected to come from TPA revenues, including revised charges, while 4.9tr/- is to be mobilised from private investors through Public-Private Partnership arrangements.
The financing strategy reflects the scale of the challenge. Ports need more than berths to accommodate growing trade. They require modern handling equipment, adequate storage, reliable connections and information and communications technology systems capable of supporting efficient cargo movement.
Without these investments, rising volumes can strain existing facilities, delay deliveries and disrupt businesses whose operations depend on predictable logistics. Importers may have working capital tied up for longer, manufacturers may struggle to obtain raw materials, and exporters risk missing delivery commitments.
The consequences can travel far beyond the waterfront. Transporters, customs agents, warehouse operators and other service providers depend on cargo moving efficiently. When delays affect the supply chain, consumers may ultimately bear some of the additional costs through higher prices for goods and services.
Port infrastructure investment is therefore not simply about building facilities. It is about improving economic efficiency, strengthening business competitiveness and ensuring Tanzania’s trade corridors remain dependable as commerce expands.
The role of PID charges must be understood within this wider financing picture. Major infrastructure projects require technical studies, engineering designs, procurement, construction and coordination with existing facilities. Their successful delivery also demands resources for operation and maintenance.
By combining internally generated revenue with private-sector participation, TPA intends to finance development across coastal and inland facilities. However, the approach will depend on revenue performance, investor participation and timely project implementation. Ultimately, the value of the financing mechanism must be measured against the capacity created and improvements delivered to port users.
One project illustrating this ambition is the construction of oil storage tanks at Dar es Salaam Port. Valued at 678.6bn/- and financed entirely through TPA’s domestic funding sources, the project is intended to improve petroleum-cargo handling and reduce vessel waiting time.
Implementation had reached 54.8 per cent, with completion expected in March 2027. Once operational, the facilities are projected to reduce average oil-vessel service time from 10 days to three.
Such an improvement could allow vessels to spend less time occupying berths, improve the utilisation of port facilities and make petroleum deliveries more predictable. The benefits matter because petroleum products underpin transport, industrial production, power generation and numerous commercial activities.
Nevertheless, improved handling alone cannot determine final prices. International petroleum costs, taxes, transportation expenses and distribution arrangements will continue influencing what businesses and consumers pay.
Further south, Mtwara is preparing for another important development. Kisiwa Mgao Port is expected to expand capacity for dry bulk cargo, including coal and clinker, commodities that require handling arrangements different from those used for containers and general cargo.
The project is valued at 434.5bn/-. Construction began in January 2025, and implementation had reached 53.97 per cent by October 2026. Completion is scheduled for January 2028.
Clinker is an essential input in cement manufacturing, while coal serves several industrial applications. Providing suitable facilities for these commodities could support industrial supply chains, provided transport links and other logistics services can move cargo efficiently to inland destinations.
Kisiwa Mgao’s eventual contribution will depend on completing construction, commissioning the facilities and establishing effective connections with inland markets. The project also highlights the importance of distributing port capacity beyond Dar es Salaam, whose growing volumes could otherwise place increasing pressure on existing infrastructure.
At Dar es Salaam, preparations are also under way for four proposed container berths, numbered 12 to 15. During the 2026/27 financial year, TPA planned to advance preparations for procuring a consulting firm and contractor. By October 2026, procurement requirements for both engagements were being prepared.
The proposed expansion is expected to raise annual container-handling capacity to 1,350,000 twenty-foot equivalent units (TEUs). Containers carry manufactured products, consumer goods and industrial inputs, making their efficient handling essential to modern commercial trade.
However, additional capacity cannot deliver its full benefits without appropriate equipment, sufficient storage and efficient connections to road and rail networks. Procurement, technical specifications, financing and construction schedules will determine how quickly the proposed berths progress from planning to physical implementation.
Another development on the horizon is the first phase of Bagamoyo Port. TPA has started preparations for procuring a consultant and contractor for dredging works on the ship access channel, which are intended to address navigational requirements.
As with the other projects, progress will depend on completing preparatory activities, procurement and subsequent implementation. Its longer-term contribution will ultimately depend on the infrastructure delivered and the capacity made available to port users.
Together, these developments illustrate the different requirements of a growing maritime economy. Oil storage facilities, container berths, bulk terminals and navigational channels serve distinct purposes, but each contributes to the wider ability of Tanzania’s ports to handle trade efficiently.
The economic effects can extend into trucking, rail transport, warehousing, customs clearance, insurance, equipment maintenance and financial services. Small and medium-sized enterprises supplying fuel, spare parts, food, repairs and other services may also find opportunities as port-related business expands.
Manufacturers need timely raw materials to maintain production schedules, traders depend on predictable cargo availability to manage sales and cash flow, and exporters require reliable services to honour delivery deadlines and sustain relationships with overseas customers.
Tanzania’s maritime gateways also support regional commerce, including cargo movements serving neighbouring markets. Sufficient infrastructure and dependable services can strengthen the country’s transport corridors, although competitiveness also depends on border procedures, customs efficiency, inland transport costs and other logistics services.
Lower logistics costs may ease pressure on consumer prices, but reductions 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.
For TPA, the challenge is not merely to mobilise billions or trillions of shillings, but to translate financing into functioning infrastructure and better services. Transparent financial reporting will be essential in demonstrating how resources are used and whether projects achieve their intended objectives.
With Dar es Salaam already handling cargo volumes projected for 2030/31, the need for additional capacity is no longer distant. The progress of the oil storage tanks, Kisiwa Mgao, proposed container berths and Bagamoyo preparations will help determine how effectively Tanzania responds.
In a nutshell, the success of PID financing will be judged by what it delivers: stronger capacity, more reliable cargo movement and a logistics environment that supports trade, investment and employment. Tanzania’s maritime growth presents an opportunity, but capturing its full economic benefits will require effective financing, timely implementation and efficient operations.
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