by Ben Taylor
SGR railway financing and freight
The Standard Gauge Railway (SGR) project achieved a significant financial milestone on April 29, 2026, in Dodoma. Standard Chartered Bank successfully arranged a syndicated financing package exceeding US$2.33 billion to push forward the remaining phases of the network. This package combines Export Credit Agency (ECA) backing from Sweden, Poland, Italy, and Turkey with commercial bank loans.
The capital infusion secures the construction finance needed for the westward extensions, specifically targeting the sections managed by
Turkish contractor Yapi Merkezi, which stretch deeper into the interior
toward Tabora and Isaka.
On the tracks, the railway is now providing a heavy-freight trains in addition to passenger-only services. On May 10, 2026, the newly completed rail spur connecting the Port of Dar es Salaam directly to the SGR main line went live, seeing the launch of the first operational container freight trains. This layout allows a potential long-term shift of heavy cargo from clogged roads to high-capacity rail lines. The initial operations focus on moving containers directly from the docks out to the Ihumwa Dry Port in Dodoma and the Isaka Dry Port in Shinyanga.
Overall network progress shows rapid advancement across multiple lots simultaneously. As of mid-2026, the initial 300-kilometer stretch from Dar es Salaam to Morogoro and the 422-kilometer leg to Makutupora (just beyond Dodoma) are largely complete. Further inland, the Mwanza-to-Isaka section has reportedly advanced past 68% completion, while heavy earthworks, bridge builds over the Malagarasi River, and track designs on the 506-kilometer Tabora-to-Kigoma line are ramping up.
Air Tanzania: launching flights to Europe and a TSh 1.09 trillion revenue push
Air Tanzania Company Limited (ATCL) continues with its international expansion and structural modernisation. Significant news broke during President Samia Suluhu Hassan’s state visit to Russia in early June. Bilateral agreements closed during the trip finalised the airline’s launch of its first-ever direct commercial route to Europe. Starting July 2, 2026, the national carrier will operate flights three times a week connecting Dar es Salaam and Zanzibar directly to Moscow, capitalising on a 25% surge in bilateral trade and a heavy wave of Russian tourism into Zanzibar.
To sustain the rapidly expanding network, the Ministry of Transport allocated TSh 185 billion for the 2026/27 budget cycle specifically for fleet development and “localised technical self-sufficiency”. This funding is split between the procurement of new aircraft, purchasing spare engines, and a major operationalisation drive. Critically, a large portion of the capital is dedicated to the rehabilitation and expansion of aircraft maintenance hangars at Julius Nyerere International Airport (JNIA) in Dar es Salaam and Kilimanjaro International Airport (KIA), a move designed to reduce the foreign currency drain previously spent sending planes abroad for repairs.
An additional TSh 98 billion was set aside under a separate “operations strengthening” umbrella to fund cargo facility upgrades, modern ICT frameworks, and practical pilot training simulators. With 33 active destinations and a target to reach 47, ATCL has projected an ambitious revenue goal of TSh 1.09 trillion from its passenger and cargo business over the next fiscal cycle.
Port expansion
With cargo volumes at the Port of Dar es Salaam hitting a historic high of 27.7 million tons annually, the Tanzania Ports Authority (TPA) has accelerated a modernisation campaign to eliminate costly maritime gridlock. The port has faced intense pressure, with an average of 20 cargo vessels waiting offshore daily due to berth limitations. In late May 2026, the TPA officially deployed a comprehensive intermodal solution that pairs physical dock expansion with integrated rail marshalling systems.
The core of the construction involves expanding the total number of berths from 12 up to 22. This includes building four entirely new berths (numbered 12 through 15), adding two parallel 500-meter berths, and executing a targeted redevelopment of two older berths within the Malindi area. Alongside the physical space for ships, engineers are constructing modern oil reception docks, extensive bulk storage facilities, and a dedicated, high-capacity rail terminal directly within the port’s perimeter to speed up container offloading.
The logistics plan hinges heavily on the “Malindi marshalling yard,” a new transit facility designed to transfer maritime cargo straight onto freight trains. The government announced that scheduled rail cargo transport between Malindi and the specialised inland Morogoro cargo terminal will officially begin this month (June 2026). This intermodal loop is designed to work alongside the developing logistics corridor toward Chalinze, potentially pulling thousands of heavy trucks off the urban road networks and shortening ship turnaround times dramatically.