Tank farm to bolster reserves

DAR ES SALAAM: PRESIDENT Samia Suluhu Hassan yesterday issued four directives aimed at strengthening national energy security, ordering an immediate reinforcement of the National Strategic Petroleum Reserve as global fuel prices continue to rise.

The Head of State issued the directives during the official ceremony to lay the foundation stone for the Tank Farm construction project in Dar es Salaam Port at Kigamboni.

Her primary instruction was to the Ministry for Energy, directing it to urgently strengthen the National Strategic Petroleum Reserve, to improve the country’s ability to withstand international supply disruptions and price volatility.

She said shifting global politics and ongoing conflicts have already pushed fuel prices up by 13 per cent as of this week, underscoring the urgency of building a stronger national buffer.

“It is wise, given shifting global politics, to have a project like this to ensure our fuel security,” the president said, adding that Tanzania must be prepared for fluctuations in the global market.

In her second directive, President Samia instructed the Ministry of Transport and the Tanzania Ports Authority (TPA) to ensure the tank farm project is completed on time and built to internationally recognised standards.

She stressed that strict environmental safeguards must be observed to ensure the long-term sustainability of the facility.

“This infrastructure, with a capacity of 378,000 cubic metres, will address the longstanding challenge where TPA did not have its own storage facilities, forcing reliance on external logistics that slowed the supply chain,” she said.

Located in Kigamboni, the project will enable the government, through TPA, to own and manage strategic fuel receiving and storage infrastructure for the first time, strengthening national control over petroleum handling operations.

In her third directive, President Samia ordered TPA, working jointly with the Tanzania Revenue Authority (TRA) and other institutions, to strengthen verification and monitoring systems for fuel consignments.

She directed that tracking mechanisms must follow fuel from discharge at the port through distribution to ensure transparency and protect government revenue.

“This is to ensure accountability and that all imported fuel is properly recorded,” she said.

Her fourth directive was addressed to contractors and consultants, who were instructed to deliver the project within agreed timelines and engineering standards to allow operations to commence without delay.

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“As our port increases its cargo handling capacity, it requires infrastructure that supports the entire trade value chain,” she said, adding that the investment is part of efforts to position Tanzania as a regional trade and logistics hub.

Beyond the directives, Dr Samia linked the project to broader economic reforms in the transport sector, including ports, railways and roads, which have increased the country’s cargo handling capacity and competitiveness.

She said customs revenue has risen to 12.31tri/- in 2024/2025, compared to 7.3tri/- in 2020/2021, attributing the increase to efficiency gains and private sector participation in port operations.

“The decision to involve the private sector required courage and firm commitment, but it has increased efficiency and allowed us to save funds for strategic investments,” she said.

She added that savings realised from reduced operational costs are now being reinvested in priority infrastructure projects such as the tank farm.

President Samia also referenced the 2025 CCM Election Manifesto, saying the project forms part of commitments to strengthen transport and logistics infrastructure and position Tanzania as a gateway for neighbouring landlocked countries.

She further pointed to the planned Bagamoyo Port, saying once completed, it will enable Tanzania to handle vessels of any size.

Detailing the technical scope, TPA Director General Mr Plasduce Mbossa said the total project value stands at 701.8bn/-, with 117.1bn/- already dished out for construction and consultancy services.

“The facility is designed to handle three major fuel types, with storage capacity of 162,000 cubic metres for diesel, 135,000 cubic metres for petrol and 81,000 cubic metres for aviation fuel (Jet A-1),” he said.

Mr Mbossa said that as of yesterday, the project had reached 41 per cent completion, with final delivery expected by February 3rd next year.

The project commenced in August, 2024. He added that the first phase in Tungi-Kigamboni has completed critical foundation works, including installation of 1,087 piles and 15 pile caps for storage tanks.

According to him, the project will save approximately 25,000 US dollars (about 58m/-) per day in demurrage charges currently incurred due to offloading delays.

He said the facility will reduce oil tanker turnaround time from the current average of 22 days to seven days per vessel, significantly improving port efficiency and competitiveness.

Mr Mbossa added that upon completion, the project will increase the total fuel receiving capacity at the Dar es Salaam Port from 1,051,888.52 cubic metres to 1,429,888.52 cubic metres, representing a 35.9 per cent increase.

He said the expansion will enhance fuel availability and contribute to greater price stability in the domestic market.