President Samia Suluhu Hassan laid the foundation stone for the project on 3 March 2026, describing it as a strategic move to address long-standing challenges in fuel reception and storage at the country’s busiest port.
The expansion forms part of a broader government plan to modernise port operations and position Tanzania as a stronger trade and logistics hub in East Africa.
Construction of the storage facility began in August 2024 and is already 41% complete, with full completion expected in February 2027. Authorities say $45.7 million (TZS 117.1 billion) has already been paid to the contractor and project consultant working on the development.
When finished, the facility will add 15 new tanks with a combined capacity of 378,000 cubic metres, including 162,000 cubic metres for diesel, 135,000 cubic metres for petrol, and 81,000 cubic metres for Jet A1 aviation fuel.
The additional capacity is expected to significantly improve the port’s ability to handle petroleum shipments, reduce unloading delays and ensure a more stable fuel supply for households, businesses and industries.
Officials say the expansion will also sharply reduce congestion at the port. Oil tankers currently spend an average of 22 days waiting to discharge cargo, but the new infrastructure is expected to cut that time to about seven days.
This would eliminate demurrage costs of roughly $25,000 per day, fees that shipping companies charge when vessels are delayed beyond their allotted port time.
Speaking at the launch, President Hassan said ongoing reforms in the port sector, including greater participation by the private sector, have already improved efficiency, expanded cargo handling capacity and increased government revenue.
She also directed the Ministry of Energy to strengthen Tanzania’s National Strategic Petroleum Reserves to better shield the country from volatility in global oil markets.
The president further urged authorities to adopt modern cargo-tracking systems for petroleum shipments in order to improve transparency and safeguard public revenues.
Transport Minister Makame Mbarawa said the government is also linking the port’s operations with the country’s Standard Gauge Railway (SGR), which is expected to begin transporting cargo between Dar es Salaam and Dodoma soon.
At the same time, dry ports are being developed in Morogoro, Dodoma and Shinyanga to ease congestion at the main seaport and improve the movement of goods across the country.
The storage tank project is being implemented by the Tanzania Ports Authority (TPA) under the Ministry of Transport as part of the country’s Port Master Plan, which aims to boost efficiency, competitiveness and the sector’s contribution to the national economy.
According to TPA Director General Plasduce Mbossa, reducing the time ships spend in port will not only eliminate demurrage charges but could also help stabilise domestic fuel prices, since such costs are often passed on to consumers.
Faster turnaround times are also expected to attract more vessels to Dar es Salaam, increasing trade volumes and government revenue.
The Port of Dar es Salaam serves as one of East Africa’s most important energy gateways, supplying Tanzania and several landlocked neighbours. Expanding its oil reception and storage capacity is expected to strengthen fuel supply reliability and reinforce the port’s role as a critical logistics hub for the region.
