Tanzania to Shift Bulk of Port Cargo onto Rail to Cut Logistics Costs

The Government of Tanzania plans to move the bulk of cargo passing through its ports onto rail, a shift aimed at cutting logistics costs, raising transport efficiency and benefiting traders and farmers.

The Permanent Secretary of the Ministry of Transport, Prof. Godius Kahyarara, announced the plan on 8 August 2026 while concluding his tour of the Ministry’s pavilions at the International Agricultural Exhibition (Nane Nane) 2026 at the John Malecela grounds in Dodoma.

Kahyarara said the measure would improve the efficiency of the transport system, lower shipping costs and benefit both traders and farmers.

He explained that the Government, through the Tanzania Ports Authority (TPA) and the Tanzania Railways Corporation (TRC), is integrating port and rail services so that cargo can be moved quickly and cheaply from the ports to various destinations within the country and in neighbouring states.

Kahyarara stated that the integration would increase the competitiveness of Tanzania’s ports and spur growth in trade and the wider economy.

Turning to marine transport, he noted that the Government has made significant progress in strengthening infrastructure along the Western Corridor, particularly in Kigoma Region.

He said President Dr. Samia Suluhu Hassan launched four new cargo vessels in Kigoma, laid the foundation stone for a modern passenger and cargo jetty at Kigoma Port, and witnessed the completion of a major refurbishment of the vessel MV Liemba, which has begun trials before returning to service.

Kahyarara added that the projects reflect the Government’s commitment to strengthening marine transport, expanding port capacity, opening economic opportunities and easing the movement of people and goods within the country and across East and Central Africa.

The plan builds on a broader government push, announced earlier in 2026, to shift cargo handling at the Port of Dar es Salaam away from road and lake transport and onto the Standard Gauge Railway (SGR).

Under the new arrangement, containers move directly from the port onto SGR freight trains, eliminating a costly double-handling system and reducing transit time.

The effort is tied to Tanzania’s ambition to position itself as the logistics hub of East and Central Africa, with the SGR described as the inland extension of the country’s maritime gateway.

It follows major investment at the port itself, including a 30-year concession signed in 2023 with UAE logistics group DP World to manage the Port of Dar es Salaam, under which DP World is investing USD 250 million on upgrades in the first five years, with spending potentially rising to USD 1 billion over the life of the concession.

The SGR network is also being extended regionally, including a planned link to Burundi, as part of the Central Corridor connecting the port to landlocked neighbours such as Rwanda, Burundi and eastern DRC.