The Port of Dar es Salaam is undergoing a transformative overhaul that is dramatically lowering operational costs, boosting trade efficiency, and positioning Tanzania as a premier logistics hub for East and Southern Africa. This turnaround is driven by a bold reform agenda under President Samia Suluhu Hassan and landmark investment agreements with global port operators, notably DP World and the Adani Ports and Special Economic Zone (APSEZ).
Following the October 22, 2023, agreement with DP World, Tanzania has slashed monthly operating costs at Dar es Salaam Port from an average of $99.3 million (recorded between May 2023 and March 2024) to a projected $62.9 million for the same period through 2025. This represents a sharp monthly cost reduction of $36.4 million, a 36.6 percent decline, signaling a new era of efficiency and fiscal discipline.
The reforms have already delivered tangible results. Container throughput has soared by 35%, from 159,807 to 215,286 units, while total cargo volumes have climbed by 14%, from 14.8 million tonnes to 16.9 million tonnes—a 2.046 million tonne increase. These gains reflect growing economic activity across the region and underscore Dar es Salaam Port’s critical role as a regional trade lifeline.
At the heart of this transformation is the Dar es Salaam Maritime Gateway Project (DMGP), a multi-stakeholder modernization initiative backed by the Tanzanian government, the Tanzania Ports Authority (TPA), the World Bank, and the UK’s Department for International Development (DFID).
With a $345 million credit from the World Bank, a $12 million DFID grant, and a $63.4 million government contribution, the DMGP has enhanced port depth, widened access channels, upgraded berths, and improved rail connectivity.
Thanks to these upgrades, the port can now accommodate larger vessels with faster turnaround. Ship waiting times have dropped from 80 hours to just 30, and offloading times have been reduced from up to ten days to only three.
The Parliamentary Committee on Infrastructure, led by Chairperson Seleman Kakoso, in March this year praised the TPA for its strong leadership and swift implementation of reforms.
“We commend the investments that have accelerated cargo handling, cut docking times, and enabled broader economic growth,” Kakoso said during an inspection tour of ports in Dar es Salaam, Mtwara, and Tanga.
Kakoso also emphasized the strategic expansion of dry ports in Kwala (Coast Region) and Ihumwa (Dodoma) to reduce congestion at Dar es Salaam. He urged the government to fast-track the construction of supporting railway infrastructure and to acquire land for future port expansion, citing international best practices in long-term port planning.
The government’s forward-looking strategy includes diversifying port development across the country. Investments in smaller but strategically located ports such as Mbamba Bay on Lake Nyasa aim to decentralize cargo flow and unlock inland trade corridors.
In a move that further underscores Tanzania’s ambition, a 30-year concession was awarded to India’s APSEZ—the country’s largest commercial port operator—to modernize and manage Dar es Salaam Port. APSEZ brings deep expertise, handling a quarter of India’s cargo through its network of technologically advanced ports. Their entry into Africa, beginning with Dar es Salaam, aligns with a growing appetite among global port operators to tap into the continent’s expanding economies and underserved logistics networks.
The partnership with APSEZ is expected to optimize cargo handling, modernize infrastructure, and introduce integrated port services capable of handling a wide array of cargo types—from containers to liquid and dry bulk—while enhancing trade routes across Tanzania and to land-linked neighbors such as Zambia, Malawi, the DRC, Burundi, Rwanda, and Uganda.
In 2023, DP World signed a 30-year concession agreement with the TPA to operate and modernize the Dar es Salaam Port. The agreement marked the first phase of a multi-stage investment plan aimed at improving transport and logistics services across Tanzania and its hinterland. DP World initially invested over $250 million, with potential investments rising to $1 billion during the concession period, including hinterland logistics and infrastructure upgrades.
The port is serving key trade gateway for Sub-Saharan Africa, linking regional businesses to global markets through improved road, rail, and freight networks. This development supports economic growth by creating jobs, enhancing access to goods and services, and facilitating faster cargo clearance. DP World is also investing in temperature-controlled storage, rail connections, and a potential special economic zone to boost agriculture and trade efficiency, positioning Tanzania as a vital hub in global supply chains.
Deputy Minister for Transport David Kihenzile and TPA Deputy Director General Dr. Baraka Mdima have reaffirmed the government’s commitment to strengthening these partnerships to deliver efficient, high-performing port systems that serve not only Tanzania’s economy but also regional integration goals.
“We are witnessing unprecedented efficiency gains. These reforms are not symbolic—they are real, measurable, and directly impacting trade turnaround, investor confidence, and GDP growth,” Dr. Mdima.
As Dar es Salaam emerges as a modernized gateway to global markets, the combination of targeted infrastructure investments, operational overhauls, and strategic international partnerships is reshaping Tanzania’s logistics landscape. The results are clear: lower costs, faster service, and a growing role in regional and global trade.
“This is not just about upgrading a port—it’s about redefining how Tanzania connects with the world. The strategic partnerships with DP World and Adani reflect our bold ambition to become the logistics heart of Africa,” Kihenzile said.
The port’s transformation is more than an infrastructure story—it is a symbol of Tanzania’s wider economic resurgence, powered by collaboration, foresight, and a commitment to unlocking the full potential of its strategic geographic position.
This article was published by Githua Kihara, an editorial consultant for FEAFFA’s Freight Logistics Magazine. For any inquiries, please contact us via email at editorial@feaffa.com or freightlogistics@feaffa.com, or reach out to Andrew Onionga directly at onionga@feaffa.com / +254733780240.
