Kotak Mahindra Bank: RLLR: 0.75 | From: 8.7% - To: 10.5%
Union Bank of India: RLLR: 0.5 | From: 8.5% - To: 10%
Bank of Baroda: RLLR: 0.5 | From: 9.25% - To: 11%
HDFC Bank: RLLR: 0.75 | From: 8.5% - To: 8.8%

Tanzania prepares to restart work on long-delayed Bagamoyo port project

#International News#Infrastructure#Tanzania
Last Updated : 28th Nov, 2025
Synopsis

Tanzania is preparing to restart construction of the long-delayed Bagamoyo Port in December after more than a decade of postponements. Officials confirmed that equipment has begun moving to the project site, where work will start with 14 berths before expanding to 28. The port will be dredged to about 20 metres and will handle ships carrying up to 25,000 containers. The project will anchor a 9,800-hectare special economic zone linked by rail and road networks. Earlier agreements had stalled, but renewed government negotiations since 2021 have moved the plan forward.

Tanzania is moving ahead with plans to restart construction of the long-delayed Bagamoyo Port this December. The announcement comes after several years of limited progress on a project that was first proposed more than ten years ago and has since gone through multiple rounds of negotiations and revisions. The site is located around 75 kilometres north of Dar es Salaam and is expected to relieve congestion from the country's main port once completed.


Government spokesperson Gerson Msigwa stated that machinery is being transported to the location as preparations progress. The initial phase includes constructing 14 berths, designed to expand to 28 berths over time. The port will be dredged to a depth of nearly 20 metres to accommodate larger vessels than those handled at other East African ports. He also mentioned that the facility is planned to receive ships carrying up to 25,000 containers. However, details on the total investment required and the list of participating partners were not disclosed at this stage.

The project was originally tied to a 2013 framework agreement involving China Merchants Holdings International and Oman's State General Reserve Fund. The deal stalled because the government raised concerns over terms that were not aligned with national interests. Progress resumed after President Samia Suluhu Hassan took office in 2021 and directed that negotiations be reopened to ensure more favourable conditions.

Earlier this year, the Tanzania Ports Authority signed memorandums of understanding with companies from China, Egypt, and Saudi Arabia for preliminary activities connected to the project. These MoUs were limited to early-stage planning and did not commit parties to full construction.

The port will be a central component of a 9,800-hectare special economic zone planned for Bagamoyo. The zone is expected to include industrial parks, logistics hubs, commercial facilities, and supporting infrastructure. President Hassan has previously explained that the development will be carried out in partnership with the Tanzania Ports Authority, the Tanzania Railways Corporation, and private investors.

A new 100-kilometre railway line is planned to connect the port to the Kwala dry port via the Standard Gauge Railway, which is intended to speed up cargo movement inland. Recent feasibility work and engineering designs have already been completed. A 2023 study by Ardhi University estimated that full development of the SEZ could require approximately Sh 11 trillion, with the government contributing about Sh 1.6 trillion for roads, electricity, and water infrastructure. The same assessment projected the establishment of more than 200 industrial units in the zone, creating both direct and indirect employment.

Earlier planning documents have also highlighted that the Bagamoyo SEZ is intended to form a major industrial base connected to national and regional transport networks, supporting Tanzania's goal of becoming a stronger logistics hub for East and Central Africa.

Source Reuters

Related News

Have something to say? Post your comment

Recent Messages