THE government has begun the construction of 15 oil storage tanks at the Kigamboni waterfront area in the city of Dar es Salaam.

Prof Makame Mbarawa, the Transport minister, visited the construction site on Wednesday to inspect progress, stressing the project's importance as a move “aimed at addressing the critical shortage of facilities that has been driving up fuel prices across the country.”

Officials say that project implementation has so far reached 14.7percent, billed as a milestone in improving the country’s fuel supply infrastructure, with the minister, during the visit, underlining that the ongoing shortage of oil storage tanks has been a contributing factor to rising cost of fuel, making this new initiative essential for addressing these challenges.

Once completed, the 15 oil storage tanks will have a combined capacity of 378,000 cubic meters, dedicated to storing various types of fuel, including six tanks for diesel, five for petrol, three for aviation fuel and one reserve tank, he said.

The project is expected to reduce the time ships spend offloading fuel at the port, eliminating costly demurrage and storage charges, he said, noting that the 678bn/- project will provide much-needed storage capacity, boosting the efficiency of the nation's oil logistics and distribution systems.

“This will, in turn, help stabilize fuel prices and reduce operational inefficiencies, which have long burdened Tanzanian consumers,” the minister asserted, underlining that the lack of oil storage tanks has driven up fuel costs. “This new project is designed to solve that problem and help stabilize fuel prices,” he explained.

While the current fuel handling system is effective, it is not yet fully optimized, thus the new tanks will greatly improve the efficiency of the supply chain by reducing delays and ensuring a more consistent flow of fuel to consumers, he said.

“Once the project is completed, we expect to see reduced ship waiting times and lower demurrage charges at the port, which will benefit the public,” he said. noting that as part of the early construction stages, four deep pits have been excavated, each 28 meters deep, to provide stability for the tanks. Construction materials have been carefully tested and procured to meet the necessary quality standards, the minister specified.

Despite challenges posed by the proximity of the rainy season, the project is moving forward without significant delays, he said, while Dr Baraka Mdima, the acting deputy director general of the Tanzania Ports Authority (TPA), said that works on the project had registered considerable progress, from just 5percent completion last September to 14.7percent at present.

TPA was closely monitoring the project to ensure it meets all specifications and standards, he said, expressing confidence that the completion of the 15 oil storage tanks will play a crucial role in enhancing the efficiency of Tanzania’s fuel supply chain. It will reduce costs for consumers and contribute to long-term stability in fuel prices, he declared.

The successful completion of this project is expected to bring lasting improvements to the country’s fuel infrastructure, benefiting both the economy and the public,” he added.