Rail and port upgrades drive Tanzania transport ambitions

Tanzania is investing heavily in upgrading its transport infrastructure to position itself as a key player in regional trade and logistics. The country's flagship project is the Standard Gauge Railway (SGR), the most significant transport development since independence. This electrified line will link Dar es Salaam, the country's commercial hub, with key inland towns and extend further to the shores of Lake Victoria and Lake Tanganyika before connecting to neighboring countries such as Burundi, Rwanda, and the Democratic Republic of Congo.

The SGR is designed to facilitate high-speed passenger and freight services, with trains traveling at 160 km/h and 120 km/h respectively, significantly reducing travel times and transportation costs. Construction began in 2017 and some sections have already been operational, with passenger services on the Dar es Salaam to Dodoma route commencing in mid-2024.

This has attracted 6 million customers since its launch, with the trip taking under four hours compared to 7-10 hours by road. The remaining sections of the SGR are on track for completion by 2030, with substantial funding coming from the government and international sources. Standard Chartered Bank has been instrumental in mobilizing $3.8 billion in funding for the project through strategic syndicated loans, demonstrating the importance of infrastructure projects in attracting global capital.

Simultaneously, Tanzania is modernizing its port network, with a major focus on the Dar es Salaam Port. A 30-year concession deal with UAE logistics giant DP World has been signed, investing $250 million in port upgrades, which has already led to improved efficiency, reduced waiting and discharge times, and increased capacity. The port handled 27.7 million tonnes in the 2024/25 financial year, marking a 17% year-on-year increase.

Additionally, the Port of Tanga is undergoing significant modernization to accommodate crude oil exports through the East African Crude Oil Pipeline (EACOP), which is expected to commence operations in October 2026. This modernization is anticipated to transform Tanga into an industrial hub, potentially attracting investment in logistics and refining.

These transport and port upgrades are integral to Tanzania's broader strategy to become a major trade and logistics center in East Africa, enhancing regional connectivity and boosting economic growth.