The Latest

Rwanda Choose Tanzania for Rail Link to Indian Ocean

May 21, 2016
2 minute read
Tanzania Standard Gauge Railway

Rwanda’s rail links to the Indian Ocean will pass through Tanzania, instead of Kenya, due to lower cost and less time needed for the construction.

The Tanzanian option will link Kigali to Dar es Salaam for an estimated cost of around USD900m versus USD1bn for the Kenyan option, according to the Rwanda Ministry of East African Community Affairs.

The primary objective of the railway is to provide the landlocked countries of Rwanda and Burundi and the interior of Tanzania with a more efficient and low cost transport link to the port of Dar es Salaam via the Central Corridor.

Tanzania Investment Guide 2026 Free Edition

The rail links to the Indian Ocean will be constructed under the Dar es Salaam-Isaka-Kigali/Keza-Musongati (DIKKM) Standard Gauge Railway (SGR) project, which is expected to be completed by 2018 at the total cost of USD5.2bn.

The approximate length of the lines will be 970km between Dar es Salaam and Isaka, 494km between Isaka and Kigali, and 197km between Keza and Musongati.

The SGR will be built primarily for freight trains with heavy loads (32.4t) and long train lengths (2000m), although passenger trains will also be operated.

The railway is expected to handle minimum 8.5m t and maximum 24m t of traffic volume per year by 2029.

The three governments (of Rwanda, Tanzania and Burundi) partnering together on the DIKKM railway intend to implement it using a Public Private Partnership (PPP) arrangement.

TanzaniaInvest Capital Markets Report Banner

Julius Ndega, senior engineer at the Rwanda Ministry of Infrastructure, said: “We are conducting a joint development of the standard gauge railway with our counterparts from Burundi and Tanzania. We have agreed contract terms and conditions and the Rwanda Transport Development Agency (RTDA), will procure it on behalf of the three countries.”

Uganda also chose Tanzania over Kenya for the construction of its oil pipeline to the Indian Ocean due to cost and safety concerns.

The Uganda–Tanzania Crude Oil Pipeline (UTCOP), a 1,400km proposed pipeline will transport crude oil from Uganda’s oil fields to the Tanzanian port of Tanga on the Indian Ocean.

Want to know more about Transport in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Transport, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

Download Free OverviewGet the Full Edition for Free
Tweet
Share
Share
Share
Related Posts
EU-Tanzania Roadshow 2026 APM Terminals at Maasvlakte Rotterdam
Read More

EU–Tanzania Roadshow Ends With Rotterdam and Antwerp Port Visits as Tanzania Pitches Port, Rail and Logistics Opportunities to European Companies

The EU-Tanzania roadshow ended in Antwerp on 6 October 2026 after port visits in Rotterdam, with Tanzania's port and rail authorities pitching openings for terminal operators, EPC contractors, private rail operators and digital rolling stock tracking, while rail operator Vecturis, minerals logistics group Polytra, heavy lifting company Sarens and marine data company GEOxyz outlined their plans in Tanzania. The EU said it will join the World Bank and the EIB, which has a formal financing request, in supporting the Dar es Salaam port expansion, and offered Global Gateway guarantees, equity and feasibility funding for company projects screened by member states.
EU-Tanzania Roadshow 2026 The Hague day 1 opening Mkumbo
Read More

EU–Tanzania Roadshow Reaches The Hague With Coffee, Cashew, Critical Minerals, and Port Investment Pitches

The EU-Tanzania roadshow reached The Hague on 5 October 2026 for its final leg, where Tanzania pitched coffee and cashew processing, wheat and edible oils, critical minerals, the new Bagamoyo and Mwambani ports on the mainland, Zanzibar's Mangapwani port hub, four dry ports, and two new lines of the standard gauge railway network to around 90 businesses. Agriculture emerged as the priority sector for European and Dutch investors, with the best opportunities in food production and value addition, backed by Dutch expertise as the world's second-largest agricultural exporter.
Read More

Tanzanian Delegation Visits Agribusiness, AI, Data Centre and Railway Facilities on Day Two of EU–Tanzania Roadshow in Italy

On 2 October, Tanzanian agribusiness and digital delegations visited facilities in Emilia-Romagna during the EU–Tanzania roadshow’s Italian leg. On the second day of the EU–Tanzania roadshow in Italy, the agribusiness delegation visited Apofruit–Almaverde, Martini Group and Unitec to examine post-harvest handling and cold storage, livestock and food operations, and fruit sorting, grading and training. A separate group led by Deputy Minister Pius Chaya visited the University of Bologna, DAMA Tecnopolo and Bologna San Donato to learn about artificial intelligence, Industry 4.0, supercomputing, data centres and railway testing.

Want to know more about investing in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers the economy, key sectors and investment opportunities. The complete 141-page edition, which includes policies, taxation, key regulations, full macroeconomic data and sources, is also available at no cost upon completion of a short form.

Download Free Overview Get the Full Edition for Free