TASAC: Why Dar Port still needs dry Ports despite congestion

By Our Reporter

The regulator of Tanzania’s maritime transport sector has defended the continued use of inland container depots (ICDs), saying they remain critical to keeping Dar es Salaam Port operational as cargo volumes grow beyond the port’s storage capacity.

The Tanzania Shipping Agencies Corporation (TASAC) Director General, Mohammed Salum, said closing ICDs or relying entirely on rail to evacuate cargo would not be practical under the current infrastructure capacity.

He said Dar es Salaam Port now handles more than 4,000 containers a day, with July alone recording about 137,000 containers, putting increasing pressure on available storage and cargo evacuation facilities.

“Without additional storage facilities outside the port, the port could fill up within a few days, affecting the loading and unloading of ships,” Mr Salum said.

He was speaking in Dar es Salaam during a briefing for journalists on developments and challenges facing the maritime transport sector.

Mr Salum said the rapid growth in container traffic was one of the main reasons ICDs had become an integral part of the logistics chain.

The port handled about 740,000 containers in 2020, but the figure rose to 1.245 million in 2025, representing an increase of more than 50 percent.

He attributed the growth partly to investments made by the government in collaboration with the World Bank between 2017 and 2021, as well as improved port operations following the entry of new investors.

But the growth has also exposed a key challenge: the port’s capacity to handle and store cargo has not expanded at the same pace as the volume of containers passing through it.

The port currently has capacity to accommodate about 27,000 containers at any given time, equivalent to approximately six to seven days of operations.

According to Mr Salum, the use of ICDs is not a new development, but a response to lessons learned from previous congestion crises.

Before 2000, most container storage, inspection and clearance activities were carried out within Dar es Salaam Port, which was then handling about 110,000 containers annually.

Following the entry of private terminal operator TICTS and improvements in efficiency, container traffic increased to about 340,000 containers annually by 2007/08.

The increase overwhelmed available space and contributed to severe congestion, eventually disrupting port operations towards the end of 2007.

The government, through the Tanzania Revenue Authority (TRA) and other stakeholders, subsequently introduced measures to move some cargo-related activities outside the port.

The objective was straightforward: allow the port to concentrate on receiving, loading and unloading ships while ICDs provide additional space for cargo storage and other logistics activities.

While defending ICDs, Mr Salum acknowledged that their rapid expansion has created challenges of its own.

Between December and March, some ICDs operated at more than 150 percent of their capacity, resulting in congestion and difficulties in moving cargo through Dar es Salaam.

The situation raised concerns about whether the city’s infrastructure and land-use planning were keeping pace with the expansion of cargo facilities.

In response, TASAC, working with the Tanzania Ports Authority (TPA), allowed the establishment of larger ICDs with a minimum area of 40,000 square metres, equivalent to about 10 acres.

Facilities cited include Salsala in Mbagala, Heco in Kigamboni and KICD.

At the same time, TASAC suspended the issuance of new ICD licences in June as part of efforts to control the expansion of the sector.

The regulator has also engaged Dar es Salaam’s municipal councils to coordinate urban planning and identify suitable locations for ICD operations.

The debate over ICDs has partly been driven by calls for more cargo to be transported by rail, particularly to Kwala, to reduce the number of trucks operating on Dar es Salaam’s roads.

Mr Salum said the long-term direction should include greater use of rail, but argued that the existing railway system cannot yet handle the entire volume of cargo arriving at the port.

He said both the metre-gauge railway (MGR) and Standard Gauge Railway (SGR) are undergoing improvements, but their current capacity remains below the port’s daily cargo volumes.

As an example, he said one MGR train carries about 27 containers per trip, compared with more than 4,000 containers arriving at the port each day.

This means road transport remains necessary to complement rail until railway capacity is significantly expanded.

The issue is not simply about ports, trains or trucks. It also has a direct bearing on residents and businesses.

Poorly coordinated cargo movement can contribute to traffic congestion, longer travel times, increased transport costs and pressure on roads in Dar es Salaam.

Mr Salum said the solution was therefore not to eliminate trucks but to improve their coordination and regulation.

Trucks, he noted, remain important because they provide door-to-door delivery services and connect ports, ICDs, warehouses, businesses and customers.

The challenge, therefore, is ensuring that trucks move efficiently without creating unnecessary disruption to other road users.

TASAC is currently assessing the capacity and infrastructure of ICDs during a period of relatively lower cargo volumes.

The exercise is intended to prepare the sector for an expected increase in cargo from October.

For citizens and businesses, the bigger question is whether the country can expand cargo-handling capacity without simply shifting congestion from the port to roads and residential areas.

The answer will depend on better coordination between the port, ICDs, railways, trucking companies, customs authorities and city planners.

Mr Salum urged journalists to help educate the public about the role of ICDs, arguing that the facilities should be viewed as part of a wider logistics system rather than as a replacement for the port or railway.

Dar es Salaam Port is a strategic economic gateway for Tanzania and neighbouring landlocked countries. Ensuring that it operates efficiently is therefore not only a matter for port authorities and cargo operators—it has implications for the price of goods, business costs, road congestion and the wider economy.

The challenge facing Tanzania now is to ensure that the expansion of cargo volumes is matched by equally strong investment in rail capacity, properly planned ICDs, efficient trucking systems and urban infrastructure so that the benefits of a growing port do not come at the expense of residents and other road users.

Post a Comment

Previous Post Next Post

Advertisement