Tanzania Invests $274 Million to Expand Fuel Storage Capacity at Dar es Salaam Port

The capacity will be distributed across key petroleum products:

• 162,000 cubic metres for diesel

• 135,000 cubic metres for petrol

• 81,000 cubic metres for Jet A1 aviation fuel

Officials say the expansion will increase the port’s fuel reception capacity by 35.9 percent, allowing it to handle larger volumes of petroleum shipments more efficiently.

Construction of the project began in August 2024 and is already 41 percent complete, with full completion expected by February 2027, the Accra Street Journal reports.

Authorities have already paid approximately $45.7 million (TZS 117.1 billion) to contractors and consultants working on the project.

Reducing Delays and Shipping Costs

One of the main goals of the expansion is to reduce congestion at the port’s petroleum terminals.

Currently, oil tankers can wait up to 22 days before they are able to discharge their cargo at the port.

With the new storage capacity in place, waiting times are expected to drop to about seven days, significantly improving efficiency, according to the Accra Street Journal.

Reducing delays will also eliminate demurrage charges, the fees shipping companies impose when vessels are forced to remain in port longer than scheduled.

Officials estimate these costs currently average around $25,000 per day per vessel, expenses that are often passed on to fuel importers and eventually to consumers.

Strengthening Tanzania’s Energy Security

President Samia Suluhu Hassan said the project forms part of a broader strategy to strengthen Tanzania’s energy supply system and reduce vulnerabilities in the petroleum supply chain.

According to the Accra Street Journal, the president also directed the Ministry of Energy to expand the country’s National Strategic Petroleum Reserves in order to shield the economy from volatility in global oil markets.

She further instructed authorities to introduce modern cargo tracking systems for petroleum shipments, a move intended to increase transparency and protect government revenue.

The reforms are part of ongoing efforts by the government to modernise port operations and improve efficiency in Tanzania’s logistics sector.

Modernising the Port of Dar es Salaam

The expansion is being implemented by the Tanzania Ports Authority under the Ministry of Transport (Tanzania), as part of the country’s long-term Port Master Plan, according to the Accra Street Journal.

Officials say the initiative aims to improve:

• Port efficiency

• Cargo handling capacity

• Trade competitiveness

• Revenue generation for the government

The Port of Dar es Salaam is Tanzania’s largest and busiest seaport and one of the most important trade gateways in East Africa.

It handles cargo not only for Tanzania but also for several landlocked neighbouring countries, making it a critical logistics hub for the region.

Linking Ports to Rail and Inland Logistics

The Tanzanian government is also integrating the port’s operations with the country’s expanding transport infrastructure.

According to the Accra Street Journal, Makame Mbarawa, Tanzania’s Minister of Transport, said cargo from the port will soon be transported using the country’s Tanzania Standard Gauge Railway.

The railway will link Dar es Salaam to Dodoma, improving the movement of goods across the country.

In addition, the government is developing dry ports in several cities, including:

• Morogoro

• Dodoma

• Shinyanga

These inland logistics centres are designed to ease congestion at the seaport and speed up cargo distribution across Tanzania and neighbouring countries.

Economic Benefits and Regional Impact

According to Plasduce Mbossa, reducing ship waiting times will have multiple economic benefits.

The Accra Street Journal reports that faster vessel turnaround will:

• Reduce shipping costs

• Stabilise domestic fuel prices

• Increase trade volumes

• Attract more vessels to the port

• Boost government revenue

Strengthening East Africa’s Energy Gateway

The Port of Dar es Salaam serves as one of East Africa’s most important energy and logistics gateways, supplying petroleum products to Tanzania and neighbouring landlocked economies.

With global energy markets becoming increasingly volatile, expanding fuel storage capacity is seen as a key step toward improving supply reliability across the region.

As the Accra Street Journal notes, the new infrastructure will not only strengthen Tanzania’s domestic fuel system but could also reinforce the country’s strategic role in regional energy distribution.

By modernising port infrastructure, improving logistics connections, and expanding petroleum storage capacity, Tanzania is positioning itself to become a more competitive trade and energy hub in East Africa.

Source: Accra Street Journal 

Last Updated on March 9, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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