Tanzania boosts regional standing with new logistics facility

She said the initiative is a key component of the government’s broader agenda to modernise transport infrastructure, facilitate trade and decongest the country’s main port.

“With the SGR now operational up to Kwala, cargo transit time will drop from 30–35 hours to between 24 and 32 hours. This is a milestone not only for Tanzania, but for the entire region,” the Head of State said.

She revealed that the government had invested Sh330.2 billion to procure 1,430 freight wagons and urged the Transport ministry and the Tanzania Railways Corporation (TRC) to ensure optimal utilisation of the equipment.

The President also called for greater private sector participation through the ‘Open Access’ model, under which private firms may own and operate locomotives on public infrastructure.

“Infrastructure is the government’s mandate. Business operations should be driven by the private sector. Let us partner to accelerate growth.”

President Hassan noted that cargo volumes at Dar Port rose from 23.69 million tonnes in 2022 to 27.76 million tonnes in 2023, an increase of 17.5 percent, thanks to reforms and private sector engagement. Vessel traffic also increased from 1,806 to 1,907 in the same period.

She said Kwala would act as a key offloading and distribution point for cargo destined for inland and neighbouring countries, helping decongest Dar and reduce logistics costs.

The dry port will also serve as a regional logistics hub for land-linked countries including Rwanda, Burundi, Zambia and the Democratic Republic of Congo (DRC). The President added that Kwala would eventually be integrated with upcoming ports in Bagamoyo and Tanga, improving efficiency and supporting industrial growth.

She further commended stakeholders for allocating land at Kwala to regional partners—45 hectares to Burundi, with additional space for Zambia, Rwanda and the DRC.

Major logistics shift

Transport minister Makame Mbarawa said the launch underscored Tanzania’s role in reshaping logistics in East and Central Africa.

“Kwala is more than just a dry port. Its linkage with the SGR reflects our commitment to reducing shipping costs and fostering industrial development,” he said.

Tanzania Ports Authority (TPA) director general Plasduce Mbossa said the 500-hectare facility is five times larger than Dar Port and can handle up to 5,000 containers with efficient stacking.

“Already, 120 hectares have been cleared and 60 fenced. The port now handles 821 containers daily and supports long SGR freight trains. With two daily trains, each carrying 20 wagons, cargo turnaround has greatly improved,” he said.

Mr Mbossa added that new cargo bound for the DRC is now processed directly at Kwala, eliminating clearance delays previously experienced at Dar.

Space has also been allocated for private port operators and inland container depots (ICDs), with cold rooms and other storage infrastructure under construction.

“We want all inland cargo operations centralised here. Kwala will become the heart of Tanzania’s logistics system,” Mr Mbossa said.

Industry and Trade minister Selemani Jafo said the adjacent Kwala Industrial Park is expected to generate over 300,000 jobs and attract $3 billion in investment.

“More than 200 factories will be constructed here, producing an estimated $6 billion annually—$2 billion for export and $4 billion for domestic markets,” he said, adding that the number of registered industries had increased from 52,000 in 2021 to 80,000 today.

Retired President Jakaya Kikwete hailed the Kwala and SGR investments as “pillars of national transformation” and called for continued infrastructure development to consolidate Tanzania’s regional leadership.

Regional support

Coast Regional Commissioner Abubakar Kunenge said the launch had enabled full SGR operations in the region, offering an efficient alternative to road freight.

DRC Deputy Prime Minister and Transport minister Jean-Pierre Bemba described Tanzania’s investment as a strong commitment to regional integration.

He said the DRC was finalising a private investor to manage its dry port zones at Kwala and Katosho (Kigoma) and announced an upcoming joint groundbreaking ceremony to be co-hosted by Presidents Samia and Félix Tshisekedi.

“These facilities will reduce smuggling, improve traceability and generate jobs across our economies,” Mr Bemba noted.

Executive Secretary of the Central Corridor Transit Transport Facilitation Agency (CCTTFA), Advocate Okandju Okonge Flory, praised President Samia’s “pragmatic and transformative” leadership.

“Tanzania is no longer just a gateway—it’s setting the standard for regional logistics integration,” he said, citing CCTTFA investments in TRC wagon rehabilitation and dry ports for Burundi, Rwanda and the DRC.

World Food Programme (WFP) Country Director Ronald Tran commended the country’s transport reforms, describing them as critical to streamlining cargo flow and enhancing regional food security.

Burundi’s Minister for Infrastructure Dieudonné Dukundane said his government had begun preparing its designated land at Kwala and was committed to fast-tracking operations.

“This port is a major opportunity for Burundi. It will boost our trade and deepen bilateral relations,” he said.