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Tanzania Launches Direct Port-to-Rail Cargo Service Through Electric SGR Network

Tanzania has achieved significant progress in upgrading its transport and logistics sector by introducing direct cargo container transport from the Port of Dar es Salaam through its electric Standard Gauge Railway (SGR) network. This service is scheduled to start on June 1 and is expected to enhance the flow of goods, decrease transportation and logistics expenses, and solidify Tanzania’s position as a critical trade node in East and Central Africa. This development comes after the completion of the Port Link project, a vital railway link that connects the Port of Dar es Salaam directly to the SGR freight system.

The project is part of Tanzania’s efforts to modernize its infrastructure and improve trade efficiency while boosting regional freight movement. The new service involves unloading containers at the Tanzania Ports Authority (TPA) and then directly loading them onto electric freight trains for transport to Tanzania’s interior and neighboring countries like Zambia and the Democratic Republic of the Congo. The combination of sea and rail transport is anticipated to significantly improve cargo handling efficiency, decrease port delays and congestion, and enhance supply chain performance.

During a visit to the Parliamentary Standing Committee on Public Investment at the Port of Dar es Salaam, Transport Minister Prof Makame Mbarawa stated that the railway was now complete and preparations were being made to improve loading operations. The government aims to boost the flow of goods and reduce congestion at the country’s busiest seaport. The initial operation of the direct cargo service will use 50 wagons, each capable of carrying two containers, ensuring the railway can move at least 100 containers daily. Officials anticipate expanding operations over time, with the capacity expected to reach about 1,000 containers per day once further demand is met and supporting infrastructure is finished.

This development supports the growing competition among African ports and transport corridors to meet the rising trade volumes driven by the newly signed African Continental Free Trade Area (AfCFTA). Tanzania is working to make the route from the coast to its domestic markets more efficient, positioning it as the most convenient option for transporting goods between the coast and landlocked nations in the region.

The integration of rail and port routes is part of a wider initiative to improve coordination between maritime and inland transport, according to the government. Additional cargo transshipment solutions are being developed to facilitate the movement of goods, reduce transportation costs, and boost the competitiveness of businesses using regional trade routes. Reforms already in place have positively impacted the performance of the Port of Dar es Salaam.

The Tanzania Ports Authority (TPA) director general, Plasduce Mbossa, noted that port revenue increased from 896.95 billion Tanzanian shillings (TS) in the 2020/21 financial year to 2.03 trillion shillings (TS) in the 2024/25 financial year. Cargo volume rose from 16.27 million tonnes to 27.76 million tonnes, and the number of vessels calling at the port increased from 1,512 to 1,990 during the same period. This growth is attributed to investments in infrastructure and partnerships with private operators, such as DP World and TEAGTL port companies. The new direct SGR cargo route is expected to further establish Tanzania as a developing logistics and trade hub in Africa, providing faster and more efficient transportation links between the Port of Dar es Salaam and regional markets.

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