SGR Dar-Morogoro route generates 169bn/- revenue

MOROGORO: INVESTMENT in the Standard Gauge Railway (SGR) has started yielding significant returns, with the Dar es Salaam-Morogoro section generating more than 169bn/- in revenue since passenger services commenced in June 2024.

Deputy Minister for Transport, Mr David Kihenzile, said yesterday that the revenue has strengthened the financial capacity of Tanzania Railways Corporation (TRC) and reduced its dependence on government subsidies, including for salary obligations.

He was speaking in Morogoro during the signing of a Memorandum of Understanding between TRC and the Workers Compensation Fund (WCF) for development of an international conference centre and a four-star hotel at Kihonda at a cost of more than 65bn/-.

Mr Kihenzile said the government was continuing to implement the National Development Vision 2050 and the CCM Election Manifesto 2025-2030, which identify transport as a key pillar in promoting a competitive economy, trade, tourism and investment.

“Transport is a key pillar in promoting a competitive economy, expanding trade, supporting tourism and attracting investment,” he said.

He said major investments in the SGR network, including the Dar es Salaam-Mwanza and Tabora-Kigoma routes, were producing tangible results, particularly following the completion and commencement of operations on the Dar es Salaam-Morogoro section.

“The investment we have made in the SGR is already producing tangible results, particularly on the Dar es SalaamMorogoro route,” he said.

According to Mr Kihenzile, approximately 5.5 million passengers travelled by SGR between the commencement of passenger services in June 2024 and March 2026.

He said 258,246 passengers travelled by SGR during the first quarter of the 2026/27 financial year, while more than 2,888 passengers were transported daily on the Dar es Salaam-Morogoro route alone.

“These achievements demonstrate that the railway is not only a means of transport but also a catalyst for economic growth and an important source of revenue for the country,” he said.

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Mr Kihenzile said continued investment in railway infrastructure has created opportunities for business, investment, employment and economic growth.

“The SGR is opening new opportunities for businesses, investors and employment, while also contributing to economic growth across the country,” he said.

He commended Transport Minister, Prof Makame Mbarawa for his leadership in overseeing the sector and President Samia Suluhu Hassan for continued investment in railway infrastructure.

He said the government would continue investing in railway infrastructure to support economic activities and improve transport services for Tanzanians.

Speaking on behalf of the Morogoro Regional Commissioner, Morogoro District Commissioner, Mr Mussa Kilakala said the SGR has contributed to opening up the region’s economy.

“Small and medium enterprises have been growing in various areas because the railway has attracted more visitors. Hotels are filling up and conference venues are also recording increased activities,” he said.

Mr Kilakala said Morogoro was both a tourism and business hub and that the agreement between TRC and WCF would further stimulate economic activity and improve residents’ livelihoods.

“This investment will further strengthen Morogoro as a tourism and business hub and create more opportunities for residents,” he said.