• Project will add 378,000 cubic metres of petroleum storage capacity

• Expansion aims to strengthen energy security and reduce tanker delays

Tanzanian President Samia Suluhu Hassan on Tuesday, March 3, 2026, presided over a groundbreaking ceremony for the construction of 15 petroleum storage tanks at the port of Dar es Salaam. The project, launched in 2024, is expected to cost 701.8 billion Tanzanian shillings ($273 million) and will add 378,000 cubic metres of storage capacity.

According to a statement from the presidency, construction is already 41% complete. The project aims to strengthen the country’s energy security.

“For the first time, the Tanzania Ports Authority (TPA) will have its own tanks, ensuring an adequate fuel supply for an extended period,” Hassan said on her X account.

Faster tanker unloading

The new infrastructure will significantly boost the port’s capacity to handle petroleum cargo, reducing ship unloading delays and ensuring a more reliable supply of fuel for households and productive sectors. It is also expected to cut tanker turnaround time from an average of 22 days to seven days per vessel. This improvement should eliminate demurrage charges, fees paid to shipowners when vessels are delayed. These charges are estimated at $25,000 per delay and are typically passed on to consumers through fuel prices.

“The project is part of the Port Master Plan aimed at improving competitiveness, operational efficiency and the sector’s contribution to the national economy, while reinforcing the position of the port of Dar es Salaam as a regional energy gateway,” said Plasduce Mbossa, Director General of the Tanzania Ports Authority.

Rising geopolitical tensions

The announcement comes amid rising military tensions between Iran, Israel and the United States. Tehran has declared the closure of the Strait of Hormuz, one of the world’s most critical energy chokepoints. Nearly 20% of global oil consumption passes through the strait each day, according to the U.S. Energy Information Administration (EIA).

Meanwhile, groups allied with Iran, particularly the Houthis in Yemen, have intensified threats against shipping in the Red Sea, putting at risk key trade routes linking Asia, Europe and Africa.

Markets now fear simultaneous disruptions to both the Strait of Hormuz and the Red Sea–Suez Canal corridor, two maritime routes essential to global energy supply and trade. Once completed, the new facilities will increase the port of Dar es Salaam’s oil receiving capacity from 1,051,888.52 to 1,429,888.52 cubic metres, an increase of 35.9%. The expansion is expected to improve fuel availability and help stabilize domestic fuel prices. Completion is scheduled for February 2027.

Lydie Mobio