A TZS678.6 billion project to build 15 oil storage tanks in Dar es Salaam is expected to strengthen Tanzania’s position as a key energy trade hub in East Africa, as the government continues investing in strategic infrastructure to improve fuel storage and distribution.
President Samia Suluhu Hassan is expected to lay the foundation stone for the project, marking the official start of its implementation.
Speaking in Dar es Salaam on March 2, 2026, Transport Minister Makame Mbarawa said the project will be implemented in the Kigamboni Mnadani area as part of a broader strategy to transform Tanzania into a major centre for petroleum storage and supply for countries in the East African region.
Prof. Mbarawa said the government is expanding its focus beyond port development to include strategic energy storage infrastructure, a move aimed at improving trade competitiveness while lowering the cost of importing and distributing petroleum products within Tanzania and neighbouring countries.
He said the 15 storage tanks will have a combined capacity of 378,000 cubic metres of fuel, significantly increasing the country’s ability to store petroleum products and improving the efficiency of oil handling operations at the Port of Dar es Salaam.
The increased storage capacity is expected to reduce the time oil tankers spend at the port from an average of 10 days to about three days, enabling faster turnaround of vessels and improved operational efficiency.
According to Prof. Mbarawa, the development will also make the Port of Dar es Salaam more attractive to large oil tankers and international investors while strengthening the country’s energy security by ensuring the availability of adequate fuel reserves.
The project is being implemented alongside broader improvements at the port, including the construction of new berths and the upgrading of other port infrastructure.
Once completed, these improvements are expected to increase the port’s cargo handling capacity to about 60 million tonnes annually.
Government data show that between July and December last year, the Port of Dar es Salaam handled about 19.9 million tonnes of cargo.
Authorities expect cargo throughput to reach 40 million tonnes by the end of the 2025/26 financial year as ongoing infrastructure upgrades continue to boost efficiency.
The government has also aligned the initiative with improvements in rail transport through the Standard Gauge Railway, with plans to move between 70 and 80 percent of cargo using rail instead of roads in order to reduce traffic congestion and road accidents.
Prof. Mbarawa said the transport sector remains a major pillar of the national economy, contributing more than 40 percent of government revenue through customs duties.
He added that the sector also generates an average of $2.48 million annually from services offered to neighbouring countries, noting that the new oil storage project is expected to further increase the sector’s contribution to the economy in the coming years.
