Tanzania Invests TZS 701.8 Billion to Expand Dar es Salaam Port Oil Storage by 35.9%

On 3rd March 2026, Tanzania’s President, Dr. Samia Suluhu Hassan, laid the foundation stone for a TZS 701.8 billion project to construct 15 oil-receiving and storage tanks at the Dar es Salaam Port.

They will serve as a critical intervention designed to address longstanding challenges in oil reception and storage while strengthening national energy security.

This initiative forms part of the broader strategy of the Government to modernize port operations and enhance the country’s position as a competitive regional trade and logistics hub, with the construction project currently standing at 41% completion after being launched in August 2024 and scheduled for completion in February 2027.

To date, TZS 117.1 billion has already been disbursed to the contractor and project consultant for the development that will introduce 15 new storage tanks with a combined capacity of 378,000 cubic metres.

This new capacity is specifically divided into storage for 162,000 cubic metres of diesel, 135,000 cubic metres of petrol, and 81,000 cubic metres of Jet A1 aviation fuel.

Upon completion, the project will increase the total oil reception capacity of the Dar es Salaam Port by 35.9% from 1,051,888.52 cubic metres to 1,429,888.52 cubic metres.

This will significantly strengthen the port’s capacity to handle petroleum cargo more efficiently, reduce vessel discharge delays, and guarantee a more reliable supply of petroleum products for households and productive sectors.

During the event, President Samia noted that ongoing port reforms, including the strategic engagement of the private sector, have enhanced operational efficiency, expanded cargo-handling capacity, and strengthened government revenue performance, prompting her to direct the Ministry of Energy to strengthen the National Strategic Petroleum Reserves in order to bolster the nation’s resilience against global market volatility.

The President also called for the deployment of modern tracking systems for petroleum cargo to enhance transparency and safeguard national revenue streams.

Highlighting complementary infrastructure developments, the Minister for Transport, Prof. Makame Mbarawa, stated that the Government is aligning port operations with the Standard Gauge Railway as cargo services between Dar es Salaam and Dodoma are set to commence, while dry ports are simultaneously being established in Morogoro, Dodoma, and Shinyanga to streamline cargo flows and ease congestion at the main port.

The Oil Storage Tanks Project is being implemented by the Tanzania Ports Authority (TPA) under the Ministry of Transport as a core component of the Port Master Plan, which is aimed at enhancing competitiveness, operational efficiency, and the overall contribution of the sector to the national economy.

The Director General of TPA, Mr. Plasduce Mbossa, stated that upon completion, the project will reduce the turnaround time for oil tankers from an average of 22 days to seven days per vessel, explaining that this efficiency is expected to eliminate demurrage charges of USD 25,000 per delay—costs that ultimately affect domestic pump prices—while attracting more vessels and increasing national revenue.

The Dar es Salaam Port serves as a primary regional energy gateway handling domestic cargo as well as transit goods for neighboring landlocked countries.

Enhancing its oil reception and storage infrastructure directly contributes to greater fuel price stability nationwide and consolidates its strategic importance within the East African logistics and energy sectors.