Kwala ICD deliveries triple amid strategic expansion

COAST REGION: KWALA Inland Container Depot (ICD) is rapidly emerging as a linchpin in the country’s logistics network, with container deliveries tripling over the past three years as the facility expands capacity and strategic operations.

The surge underscores the depot’s growing role in decongesting the Port of Dar es Salaam, streamlining cargo movement and supporting regional trade integration. In 2023, the ICD handled 42 container deliveries and received 86. By last year, those numbers had risen sharply to 365 deliveries and 603 receipts.

The pace of growth accelerated in this year. According to Tanzania Ports Authority (TPA) Public Relations Officer Mr Leonard Magomba, Kwala ICD already delivered 1,098 containers and received 1,597 in the first eight months of this year alone, more than double the total volumes handled throughout last year.

“This growth reflects Kwala’s rising importance as a national logistics hub and its role in decongesting the Port of Dar es Salaam,” Mr Magomba added.

Kwala ICD, in the Coast Region, some 75 kilometres from the Port of Dar es Salaam has 502-hectare and is designed to handle up to 300,000 containers annually roughly 823 per day, with yard capacity for 3,500 to 5,000 units. Its direct connection to the electric Standard Gauge Railway (SGR) enables faster cargo movement between the coast and inland destinations, including the country’s landlocked neighbours.

The expansion of Kwala ICD is a cornerstone of the country’s broader strategy to modernise trade infrastructure, reduce urban congestion and boost competitiveness as a regional trade hub. By moving cargo inland, the facility alleviates bottlenecks at the Port of Dar es Salaam, one of East Africa’s busiest seaports.

President Samia Suluhu Hassan, who inaugurated the dry port last month, has placed Kwala at the heart of the country’s trade modernisation agenda.

“In the future, we want port customers to receive their consignments directly at the Kwala Dry Port under CIF terms [Cost, Insurance and Freight],” she said during the launch, saying the government’s commitment to integrated logistics solutions.

Alongside the ICD, the Kwala Industrial Park was launched with seven factories already operational and five more under construction. The long-term plan aims to host over 200 industries, creating 50,000 direct jobs and up to 150,000 indirect jobs.

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Ministry of Transport Permanent Secretary, Prof Godius Kahyarara, underscored the project’s strategic intent.

“The goal is to solve challenges, not create new ones. Experts and stakeholders can advise on the best way forward.” Prof Kahyarara said that Tanzania will allocate land for dry ports in Kasumbalesa, Kasenga and Kalemie in the DRC, while the DRC will receive land for dry port development in Kwala and Katosho.

He added that the project, implemented under a public-private partnership model, is expected to be completed within 18 months. As Africa’s intra-regional trade grows, Kwala ICD’s role may expand from a national asset to a continental logistics cornerstone.

Facilities like Kwala are increasingly central to regional integration, efficiency and economic growth, offering a modern standard for trade facilitation in East and Central Africa. Comparisons with regional hubs highlight Kwala’s rapid progress. Rwanda’s Kigali Logistics Platform handles up to 50,000 TEUs annually and has improved truck turnaround times from 10– 14 days to just three.

Kenya’s Embakasi ICD in Nairobi expanded from 180,000 to 450,000 TEUs per year, serving as a vital inland extension of the Port of Mombasa. Though Kwala started with more modest figures, its growth trajectory mirrors the early phases of these established hubs.

The ICD’s direct railways connection is particularly transformative. Faster rail transit reduces cargo dwell time, improves predictability for businesses and lowers transport costs. It also positions Kwala as a preferred inland gateway for landlocked neighbours, including Burundi, Rwanda and the Democratic Republic of Congo, enhancing Tanzania’s role in regional trade corridors. The depot’s sizeable gap between current usage and full design capacity offers significant room for expansion.

“We are confident that Kwala’s full potential will be realised as trade volumes continue to grow and infrastructure improvements are implemented,” Mr Magomba said.

Beyond logistics, Kwala Industrial Park strengthens the link between cargo facilitation and industrial development. By clustering manufacturing, processing and distribution facilities near the ICD, the country aims to shorten supply chains, enhance productivity and attract foreign investment. Private sector engagement and public policy support are critical to the ICD’s success.

While government-backed development provides the foundation, efficiency gains, competitiveness and market adoption depend on coordinated actions by freight companies, industrial tenants and investors.

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Tanzania’s drive to expand inland port capacity reflects a strategic recognition that trade infrastructure underpins economic growth. By decongesting seaports, improving cargo handling and integrating transport networks, the country positions itself as a regional logistics leader.

Kwala ICD exemplifies this vision, combining strategic location, modern infrastructure and policy alignment to define the next era of trade facilitation in East and Central Africa.

With continued growth, Kwala ICD is set not only to serve the country but to become a hub for regional commerce, shaping trade flows, creating employment and enhancing the country’s industrial and logistics competitiveness.