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Tanzania Shifts Gears: SGR Cargo Launch, Port Upgrades Signal New Era in Regional Trade

Looking ahead, the third phase will extend the line from Tabora to Kigoma, a distance of approximately 411 kilometres, thereby connecting western Tanzania to the rest of the country.

July 14, 2025
in News, Trade Updates
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Tanzania Shifts Gears: SGR Cargo Launch, Port Upgrades Signal New Era in Regional Trade

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Tanzania has marked another major milestone in its regional trade transformation with the launch of cargo services on the Standard Gauge Railway (SGR) late last month, further cementing the country’s position as a logistics hub in the Central Corridor. The new freight service, officially inaugurated on 27 June 2025, runs between Pugu Station in Dar es Salaam and Ihumwa Station in Dodoma.

The SGR cargo rollout follows the successful launch of passenger services in June 2024, which have so far moved over 2.5 million people. The cargo train currently departs daily from Pugu at 10:00 a.m., halts at Morogoro for passenger train clearance, and reaches Dodoma at around 8:05 p.m. Plans are underway to increase capacity with more trains and wagons, supporting faster and more reliable goods movement within Tanzania and across its borders.

The cargo launch is closely tied to the government’s broader efforts to modernize trade infrastructure, especially through the Dar es Salaam Maritime Gateway Project (DMGP). The DMGP is a multi-phase project aimed at upgrading the Port of Dar es Salaam’s capacity, efficiency, and turnaround times. Already, significant investments have gone into dredging, infrastructure rehabilitation, and digital cargo handling systems. These upgrades are helping the port accommodate larger vessels and handle increased cargo volumes.

Indeed, the Dar Port has seen steady growth in cargo throughput, fueled by improved hinterland connectivity and rising trade volumes with landlocked neighbors like the Democratic Republic of Congo, Rwanda, Burundi, and Zambia. The synergy between SGR operations and port modernization under the DMGP is expected to further reduce transport costs and boost Tanzania’s competitiveness as a logistics gateway for Central and Eastern Africa.

The development of Tanzania’s Standard Gauge Railway (SGR) marks a significant milestone in the country’s infrastructure and regional integration efforts. The first phase, a 541-kilometre electrified railway line, was inaugurated in August 2024, connecting the commercial hub of Dar es Salaam with the administrative capital, Dodoma.

The second phase of the project extends the line from Dodoma to Tabora, onward to Isaka, and finally to Mwanza on the shores of Lake Victoria. Spanning around 1,219 kilometres, this stretch is designed to accommodate speeds of up to 160 km/h for passenger trains and 120 km/h for freight. Construction of the Tabora–Isaka segment, covering 165 kilometres, began in early 2023 and is scheduled for completion by 2026.

Looking ahead, the third phase will extend the line from Tabora to Kigoma, a distance of approximately 411 kilometres, thereby connecting western Tanzania to the rest of the country. Additionally, a 367-kilometre electrified branch line from Uvinza to Gitega in Burundi is planned. This extension is set to become a vital cross-border corridor, linking Tanzania to the Democratic Republic of Congo and enhancing regional trade and connectivity across East and Central Africa

In a further push to enhance performance and attract investment, Tanzania has also granted key concessions for port operations. Dar es Salaam’s major berths have been handed over to global logistics giants — Adani Ports and Special Economic Zone Ltd and DP World in a 30-year concession. These public-private partnerships are expected to unlock more efficiency, introduce global best practices, and expand terminal handling capacity.

The SGR cargo service, DMGP progress, increased port volumes, and berth concessions collectively point to a new era for Tanzania’s logistics and trade infrastructure.

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.

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