PORT revenue surged to 8.26trn/ from July 2024 to February 2025, up from 7.08trn/- collected in the same period in 2023/24, the government has declared.

Prof. Makame Mbarawa, the Transport minister, unveiled this 1.18trn/- increase in port revenues in three quarters of the outgoing financial year when presenting budget estimates here yesterday.

The National Assembly approved 2.75trn/- estimates for the portfolio, where the fiscal 2025/26 estimates prioritising strategic areas with a strong focus on accelerating infrastructure development.

The standard gauge railway (SGR) project takes the lion’s share of the ministry’s allocations, taking up 1.51trn/- or 55 percent of total estimates and most of its development funds. 

He said operational costs at the port of Dar es Salaam dropped by 30 per cent from 975.01bn/- during the same period earlier to 685.16bn/-while monthly container handling rose by 47 percent, from 17,000 to 25,000 TEUs (20 foot equivalent units).

Notable success was noticed in engaging private sector operators DP World and Tanzania East Africa Gateway Terminal Ltd (TEAGTL) at the country’s main port, he said, noting that by March 2025, total cargo throughput across all local ports reached 27.55m tonnes, placing the country on track to surpass its 30m tonne annual target ahead of schedule.

The current allocation will cover construction works on SGR segments from Makutupora to Tabora, Tabora to Isaka, Isaka to Mwanza and Tabora to Kigoma, as well as the Uvinza to Musongati line linking Tanzania to Burundi, he said. 

The estimates will also facilitate the procurement of railway equipment, staff training and oversight of environmental and social safeguards, he specified.

“The SGR is a transformative project. This budget ensures we maintain construction momentum while preparing for commercial operations,” he remarked.

The government is finalizing arrangements to begin freight operations via SGR in June 2025 on the public-private partnership (PPP) model. Passenger services have already seen significant uptake, with over two million passengers transported by March 2025, generating 60.25bn/- in revenue, he said.

During 2025/26, the Dar es Salaam Maritime Gateway Project (DMGP) has been allocated 24.08bn/- covering project supervision, installation of an electrical system at berths 1–7, and a comprehensive technical audit, he said.

Air Tanzania Co. Ltd (ATCL) is set to receive 216bn/- to acquire four new aircraft and undertake other operational enhancements, he said, pointing out that an additional 67bn/- will be used to strengthen the airline’s operations, including the construction of a modern aircraft maintenance hangar at the Julius Nyerere International Airport (JNIA).

Airport upgrades have 87bn/- allocated to complete terminal and runway improvements at Mwanza, Kilimanjaro, Mtwara, Bukoba and Arusha airports, he said.

The ministry also set aside 171bn/- for the construction and rehabilitation of ships operating in Lake Victoria, Lake Tanganyika and Lake Nyasa. Two large cargo ships and a 600-passenger ferry are being built, with two search-and-rescue boats being procured for Lake Victoria patrols, he elaborated.

To support the aging meter gauge railway, the government has allocated 294.8bn/- from the Railways Fund for rehabilitation and equipment acquisition. A further 51.28bn/- from external sources will be used to finance the Tanzania Intermodal Rail Project (TIRP II).

A total of 12.32bn/- will be used to revamp the TAZARA railway, for purchasing 30 new passenger coaches, installing a modern ticketing system and repairing key track segments, the minister added.