The Tanzanian government has officially launched a $274 million project to build 15 new fuel reception and storage tanks at the Port of Dar es Salaam. The expansion will increase total oil reception capacity by 35.9%, reducing the average time ships spend in port from 22 to seven days and eliminating estimated costs of $25,000 per day.
The first stone was laid on Tuesday, March 3, by President Samia Suluhu Hassan. The project is considered a strategic intervention to address historical challenges in fuel reception and storage, while strengthening national energy security.
The initiative is part of a broader strategy to modernize port operations and consolidate Tanzania as a competitive regional center for trade and logistics. The works, which began in August 2024, are already 41% complete and are expected to be finished in February 2027. To date, US$45.7 million has been disbursed to the contractor and project consultant.
The 15 new tanks will have a combined capacity of 378,000 cubic meters, distributed among 162,000 cubic meters of diesel, 135,000 cubic meters of gasoline, and 81,000 cubic meters of Jet A1 aviation fuel. The new infrastructure should significantly improve fuel unloading efficiency, reduce delays, and ensure greater reliability in supply for households and productive sectors.
During the ceremony, the President highlighted that the ongoing reforms in the port sector, including the strategic involvement of the private sector, have already contributed to increasing operational efficiency, expanding cargo handling capacity, and boosting state revenues.
Samia Suluhu Hassan also instructed the Ministry of Energy to strengthen the National Strategic Petroleum Reserves, with the aim of increasing the country’s resilience to global market volatility, and recommended the adoption of modern cargo tracking systems to enhance transparency and protect public revenues.
For his part, Transport Minister Makame Mbarawa stressed that the government is aligning port operations with the new Standard Gauge Railway (SGR), which is expected to begin transporting cargo between Dar es Salaam and Dodoma soon. Dry ports are also being established in Morogoro, Dodoma, and Shinyanga to streamline the flow of goods and reduce congestion at the main port.
The project is being implemented by the Tanzania Ports Authority (TPA), under the supervision of the Ministry of Transport, as part of the Port Master Plan, which aims to increase competitiveness, operational efficiency, and the sector’s contribution to the national economy.
According to TPA Director General Plasduce Mbossa, reducing the time ships spend in port will eliminate demurrage charges—a fee charged in maritime transport when a container remains at the port terminal longer than the contracted free time—which ultimately influence domestic fuel prices, as well as attract more vessels and increase national revenues.
The Port of Dar es Salaam is one of the region’s main energy corridors, serving not only the domestic market but also neighboring landlocked countries. The expansion of oil storage capacity reinforces fuel price stability and consolidates Tanzania’s strategic importance in the logistics and energy sector in East Africa.
Source: TanzaniaInvest
