Samia lays foundation stone for storage tanks to boost Dar Port’s oil handling capacity

Dar es Salaam. President Samia Suluhu Hassan has laid the foundation stone for the construction of 15 major oil storage tanks at the Dar es Salaam port, a move aimed at boosting the facility’s capacity to handle large consignments of fuel efficiently.

The project is expected to enhance Tanzania’s premier port’s storage capacity and reduce vessel offloading times, a critical improvement given rising global energy uncertainties.

Once completed, the storage facility will position Tanzania to better withstand price spikes, supply delays, and potential disruptions in the Middle East.

It will also provide a foundation for long-term plans to develop national strategic petroleum reserves, an essential measure for safeguarding the country’s energy security.

The 15 tanks will collectively store up to 378,000 cubic metres of fuel, including 162,000 cubic metres of diesel, 135,000 cubic metres of petrol, and 81,000 cubic metres of Jet A1 aviation fuel.

Once completed, the port’s overall fuel handling capacity will rise from 1,051,888.52 cubic metres to 1,429,888.52 cubic metres, representing a 35.9 percent increase.

Construction began in August 2024 and is scheduled for completion in February 2027.

The project, budgeted at Sh701.8 billion, has so far reached 41 percent completion.

Speaking during a briefing, Tanzania Ports Authority (TPA) Director General Plasduce Mbossa said the additional tanks would significantly reduce the time required to handle fuel vessels.

“Discharge time per vessel will fall from an average of 22 days to seven days,” he noted.

“This reduction will save approximately $25,000 (Sh58 million) in demurrage costs per vessel.”

The launch comes at a time of heightened concern over global fuel security.

The ongoing war in the Gulf between Iran, on one side, and Israel and the US, on the other, has disrupted crude shipments through the Strait of Hormuz.

The strait is a critical global oil artery, carrying roughly 20 percent of the world’s crude and petroleum products.

Recent attacks on vessels have highlighted the fragility of international energy supply chains.

For Tanzania, which imports nearly all of its refined fuel products through Indian Ocean ports, the new tanks will play a key role in mitigating the risk of supply disruptions.

Most importantly the tanks will hasten oil clearance translated in terms of reduced ship turnaround time.

Currently oil vessels have to wait longer in the outer anchorage due to limited oil storage capacity that has to be cleared and transported out of the port before new vessels can offload.

“The additional storage capacity will not only accelerate port operations but also strengthen national energy security,” Mr Mbossa said.

“It ensures that Tanzania can better manage supply shocks and maintain stability in domestic fuel distribution.”

Analysts note that with a faster offloading process and larger storage, Dar es Salaam port could become highly competitive in the region.

Fuel vessels will spend less time waiting at the port, reducing operational costs and improving efficiency for shipping lines and importers.