Tanzania’s rail renaissance: how the SGR is positioning the country as the Great Lakes’ trade gateway

DAR ES SALAAM: As a modern electric train accelerates smoothly out of Dar es Salaam, it carries more than commuters bound for Morogoro or Dodoma.

It signals Tanzania’s growing confidence that infrastructure, carefully sequenced, regionally aligned and increasingly powered by reliable electricity, can recalibrate trade routes and anchor long-term economic growth.

The Standard Gauge Railway (SGR), now operational on its eastern spine and steadily extending westwards, is emerging as one of the most consequential transport investments in the Great Lakes region.

For international investors tracking Africa’s logistics corridors, the project is not simply a domestic transport upgrade.

It is a calculated bid to redraw supply chains, lower trade costs and reinforce Tanzania’s role as the preferred maritime gateway for landlocked economies with a combined population exceeding 150 million.

Passenger operations on the Dar es Salaam–Morogoro and Dar es Salaam–Dodoma sections commenced on June 14, 2024, and July 25, 2024, respectively.

The service was officially inaugurated by President Samia Suluhu Hassan on August 1, 2024, marking a milestone in Tanzania’s transport modernisation drive.

Freight services, the economic backbone of the project, were formally inaugurated on July 31, 2025. Since operations began, the SGR has scaled up steadily.

There are currently eight passenger trips per day between Dar es Salaam and Dodoma via Morogoro, and two daily trips between Dar es Salaam and Morogoro.

By November 2025, the railway had transported about 4.34 million passengers and shipped more than 40,000 tonnes of cargo, early indicators of demand that policymakers and investors are scrutinising closely.

Redrawing regional logistics Dar es Salaam has long served as a vital port for East and Central Africa. Yet for decades, inefficiencies in road transport and ageing metre-gauge rail lines weakened its competitiveness against rival corridors, notably Kenya’s Northern Corridor via Mombasa and southern routes through Beira and Durban.

The SGR aims to change that equation. Running from Dar es Salaam to Morogoro and Dodoma and extending westwards to Tabora, Isaka, Mwanza and Kigoma, the network is designed to integrate with cross-border links to Burundi and eastern Democratic Republic of Congo, while complementing routes serving Rwanda and Uganda.

According to Tanzania Railways Corporation (TRC), the operational sections have already transformed passenger mobility.

Travel time between Dar es Salaam and Dodoma has fallen from up to nine or ten hours by road to around three hours by train.

For freight, the implications are potentially more farreaching.

A single SGR freight train can haul up to 3,000 tonnes at once, reducing reliance on long-haul trucking and easing pressure on roads and ports.

The strategic logic is clear: by anchoring regional trade flows to Dar es Salaam, Tanzania strengthens its position as a transit economy while opening downstream opportunities in warehousing, inland ports, logistics services and light manufacturing.

Cutting costs and emissions Transport costs across the Great Lakes region remain among the highest globally.

World Bank studies consistently show that landlocked economies such as Burundi, Rwanda and eastern DRC pay a heavy premium to access global markets, eroding export competitiveness and raising consumer prices. Rail offers a structural response.

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Compared with road transport, modern electrified railways move bulk cargo at lower unit cost, with fewer delays and reduced losses.

Tanzanian authorities argue that the SGR will significantly lower freight costs for fuel, fertiliser, agricultural produce and minerals, including copper and cobalt from the DRC. The environmental dividend is also substantial.

Transporting 4.34 million passengers by SGR instead of buses has eliminated an estimated 72,289 long-distance bus trips. Similarly, moving more than 40,000 tonnes of cargo by rail has displaced at least 2,009 heavy trucks, which would otherwise have consumed roughly 10.84 million litres of diesel.

By comparison, actual electricity consumption for SGR operations to date stands at about 59.14 million kilowatt-hours.

This translates into emissions of around 17.4 million tonnes of CO-equivalent, compared with an estimated 29.57 million tonnes of COequivalent had the same traffic been handled by road.

TRC estimates this represents a carbon emission reduction of about 58.9%, positioning the SGR as a flagship project in Tanzania’s push for sustainable mobility.

Regional competition and political calculus Tanzania’s rail strategy is unfolding in a competitive regional landscape.

Kenya’s SGR, linking Mombasa to Nairobi and Naivasha, has struggled to meet freight volume targets, partly due to pricing disputes and limited crossborder integration.

Uganda’s SGR plans remain largely on paper, constrained by financing challenges.

Rwanda continues to rely heavily on road transport, while eastern DRC lacks reliable corridors to the coast despite vast mineral wealth.