Samia Suluhu Hassan on Tuesday presided over the launch of a US$273 million fuel storage expansion at the Port of Dar es Salaam, a project aimed at strengthening energy security, cutting tanker delays and stabilising fuel supplies in Tanzania and neighbouring countries.
The initiative involves the construction of 15 petroleum storage tanks with a combined capacity of 378,000 cubic metres, significantly increasing the port’s ability to handle fuel imports.
The project, launched in 2024 and expected to be completed by February 2027, will cost about 701.8 billion Tanzanian shillings (US$273 million). Authorities say construction is already 41 percent complete.
According to the presidency, the new storage infrastructure will allow the Tanzania Ports Authority to own and operate strategic fuel reserves for the first time.
“For the first time, the Tanzania Ports Authority will have its own tanks, ensuring an adequate fuel supply for an extended period,” Hassan said in a statement posted on social media.
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Officials say the expansion will strengthen national fuel security while improving logistics efficiency at the port, which serves as a major gateway for petroleum products not only for Tanzania but also for landlocked neighbours including Zambia, Rwanda, Burundi and parts of the Democratic Republic of Congo.
Cutting costly tanker delays
One of the project’s main objectives is to reduce the time vessels spend waiting to unload fuel cargo.
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Currently, tankers delivering petroleum products can take up to 22 days to complete unloading operations due to limited storage capacity and congestion at the port.
Once the new tanks are operational, authorities expect the turnaround time for fuel vessels to fall to around seven days per ship.
This improvement is expected to eliminate costly demurrage charges, the penalties paid to shipowners when vessels remain at port longer than scheduled.
These charges can reach US$25,000 per delay, according to port officials, and are often passed on to consumers through higher fuel prices.
Reducing these costs could help moderate domestic fuel prices and improve supply reliability for households and businesses.
“The project is part of the Port Master Plan aimed at improving competitiveness, operational efficiency and the sector’s contribution to the national economy,” said Plasduce Mbossa, director general of the Tanzania Ports Authority.
He added that the investment would reinforce the role of the Port of Dar es Salaam as a regional energy gateway for East and Central Africa.
Expanding fuel capacity
Once completed, the new infrastructure will raise the port’s total fuel receiving capacity from 1,051,888 cubic metres to 1,429,888 cubic metres, representing an increase of about 35.9 percent.
The expansion is expected to ensure more stable fuel availability across Tanzania’s economy, particularly for key sectors such as transport, manufacturing, power generation and agriculture.
The project also forms part of broader efforts by the Tanzanian government to modernise the Port of Dar es Salaam, which handles more than 90 percent of the country’s international trade.
Authorities have been investing heavily in port infrastructure, including new cargo terminals, rail links and logistics systems, to transform the facility into one of East Africa’s most competitive maritime hubs.
Energy security amid global tensions
The launch of the fuel storage project comes at a time of rising geopolitical tensions affecting global energy markets.
Recent military escalation involving Iran, Israel and the United States has raised concerns about potential disruptions to key oil shipping routes.
Tehran has warned it could close the Strait of Hormuz, a strategic waterway through which roughly 20 percent of the world’s oil supply passes daily, according to the U.S. Energy Information Administration.
Meanwhile, attacks and threats against commercial vessels in the Red Sea by armed groups linked to Iran have heightened risks along one of the world’s busiest maritime corridors connecting Asia, Europe and Africa.
Energy analysts warn that simultaneous disruptions to both the Strait of Hormuz and the Red Sea–Suez Canal trade route could significantly affect global oil shipments.
Against this backdrop, Tanzania’s investment in expanded petroleum storage is seen as a strategic move to strengthen domestic supply buffers and protect the economy from external energy shocks.
Officials say the project will ensure the country can maintain fuel reserves for longer periods, reducing vulnerability to supply interruptions in international markets.
