Tanzania Ports Authority (TPA) is implementing infrastructure development projects underway at the Dar es Salaam Port to transform its operations, making it more competitive in the region.

With a total value of 678.6bn/-, these projects aim to enhance the port's handling of bulk cargo, particularly through the construction of a new oil terminal, which is currently 7 percent complete.

The terminal is expected to significantly improve the handling of oil and other liquid bulk cargo, positioning Tanzania as a key transport and logistics hub in East and Central Africa.

Speaking to journalists during a site tour on Wednesday, TPA Project Engineer Hamis Mbutu said the project was initiated after a thorough analysis of its potential benefits.

"At present, fuel tankers can wait up to 22 days to access an offloading point. Once this project is complete, that time will be reduced to just seven days," Mbutu explained.

Currently, offloading a fuel tanker takes about seven days. However, with the completion of the new tank farm, this process will take only 24 hours. The tank farm will also provide increased storage capacity for fuel marketers within and beyond Tanzania, with a total capacity of 378,000 cubic meters of fuel.

The project involves constructing 15 tanks in Kigamboni: six for diesel, five for petrol (mogas), three for jet fuel, and one as an interface tank. “This project will greatly expand our storage capacity and offer more opportunities for fuel marketers, which will, in turn, boost government revenues,” Mbutu added.

TPA’s Public Relations Officer, Enock Bwigane, highlighted the current high costs faced by transporters, who pay $25,000 per day to ship owners while waiting to offload fuel. 

“These costs accumulate when tankers remain at anchorage for up to 22 days, and these expenses are passed on to consumers through higher pump prices,” Bwigane noted.

By reducing tanker dwell time, the project is expected to lower fuel prices in the local market. This reduction in fuel prices will have a ripple effect, decreasing production costs and ultimately benefiting Tanzanian consumers.

The project, expected to be completed in 24 months, is being managed by Liu Tao, who assured the government that the work will be finished on time. The first phase of construction includes installing pumps, metering equipment, fire protection systems, and flow meters, alongside a 5.5-kilometer oil pipeline connecting TPA’s manifolds between Kigamboni and Kurasini.

Tao mentioned that the mobilization phase is nearly complete, with the Environmental and Social Impact Assessment Report ready for submission to the National Environmental Management Council. The site has already been prepared with the help of 20 dump trucks, three excavators, and one bulldozer.

"We are working diligently to ensure the project is completed on time, with commissioning scheduled for August 2026," Tao confirmed.

The design and construction contract for the tank farm was awarded in February 2025, and the site was officially handed over to the contractor in August. This tank farm is just one of several TPA initiatives aimed at positioning Tanzania as a strategic trade gateway for East and Central Africa.