Joseph Isangura
The government of Tanzania has announced the construction of 15 new fuel storage tanks at the Dar es Salaam port.
The project, expected to be completed within two years, is aimed at significantly expanding the country’s capacity to store petroleum products, further positioning Dar es Salaam as a key fuel hub for the East African region.
During an official visit to the Tanzania Port Authority (TPA) oil terminal located in Tundwi, Kigamboni, Transport Minister Professor Makame Mbarawa shared the details of this ambitious infrastructure project. He highlighted the vital role it will play in supporting both local and regional fuel demands. “This initiative is part of the government’s wider effort to modernize port infrastructure and enhance Tanzania’s status as a regional hub,” said Prof. Mbarawa.
Increased Storage Capacity
The new tanks will collectively hold up to 420,000 cubic meters of fuel (equivalent to 378 million liters), a significant boost that will improve Tanzania’s fuel storage and distribution capacity. Of the 15 tanks, six will be designated for diesel, five for petrol, and three for jet fuel, while the remaining tank will handle the interface process.
The large-scale project is expected to reduce vessel turnaround time drastically. Currently, ships unloading petroleum products spend around 11 to 12 days at the port, but the new facilities are projected to cut that time to just three or four days. This will enhance operational efficiency at the port and contribute to lowering retail fuel prices due to reduced bottlenecks in fuel delivery.
Chinese Contractors to Lead the Project
To implement this large undertaking, the Tanzanian government has awarded the construction contract to two prominent Chinese companies: China Railway Major Bridge Engineering Group Co., Ltd., and Wuhan Engineering Co., Ltd. The project will cost an estimated 678.6 billion Tanzanian shillings (approximately $266 million USD), with completion anticipated by the end of 2026.
The Tanzania Ports Authority Director General, Plasduce Mbossa, underscored the broader benefits of the tank construction. “Beyond improving port efficiency, this project will also address the issue of fuel loss, improve revenue collection, and enhance transparency in fuel handling,” he explained.
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Regional and Economic Impact
This major upgrade is a cornerstone of Tanzania’s broader goal to boost its economic influence and efficiency in the energy sector. By modernizing its fuel storage infrastructure, Tanzania is positioning itself as a regional transit hub, serving not only local demand but also the growing needs of neighboring countries such as Uganda, Rwanda, and the Democratic Republic of Congo.
The initiative is also expected to create jobs during the construction phase and long-term operational positions once the tanks are functional. The increased storage capacity will ensure a steady supply of fuel, reducing the risk of shortages and helping stabilize prices in the domestic market.
Upon completion, the facility will further improve Tanzania’s ability to compete with other regional ports, enhancing its role in East Africa’s petroleum logistics network.
This fuel storage expansion is a clear indicator of the government’s commitment to positioning Tanzania as a key player in the region’s energy sector, driving both economic growth and improved infrastructure.
