Tanzania Grows to Become a Regional Logistics Hub

Due to Tanzania’s determination to become a regional hub, a number of structural changes are going to happen in Tanzania with regards to its transportation and logistics system, including some policy changes, building a new port at Bagamoyo and upgrading railways.

As announced by President Jakaya Kikwete at the Reuters Africa Investment Summit in April this year, all the bureaucratic issues regarding the building of a new port, railway, and a special economic zone at Bagamoyo, a port city 75 km away Dar es Salaam were resolved successfully, and Chinese Merchants Holding International are going to begin constructions soon.

The new port is expected to start operating in 2007 and will handle 20 times more cargo than the current Dar es Salaam port.

The currently operating Dar es Salaam port is also increasing its capacities, and is expected to raise its cargo volumes by 40% by 2015 due to some policy changes, including changing the Port’s working time to 24/7.

Since 2010, the port had already increased its cargo volumes from 7 million tons to 13 million tons, with revenue collection growing 14.3% to TZS 371.7bn.

With regards to upgrading the railroad system, Tanzania-Zambia Railway Authority had signed an agreement with Chinese government on a railway renovation worth of USD 42 million, and plans regarding a number of other railroads including the one connecting Tanzania, Rwanda, and Burundi are on different stages of development.

“If we invest in logistic centres, improve on infrastructure and create a facilitative environment, we can easily turn Dar es Salaam into another Dubai of its kind,” said President Kikwete.

The recently published ca Gearing Up Report by PriceWaterhouseCoopers also praises Tanzanian logistical developments and forecasts future growth.

According to the PWC report, Tanzanian skyrocketed in terms of logistics from 137th place in 2007 to being 88th in 2013 in the world, and 9th in Africa.