TANZANIA’S TRANSPORT HUB: WHAT PROSPECTS FOR REGIONAL TRADE AND LOCAL ECONOMIC DEVELOPMENT?

The paper examines Tanzania's strategic potential as a maritime hub, focusing on the Dar es Salaam Port and the Central and Dar es Salaam corridors. It highlights significant infrastructure deficits, particularly in the rail sector, and evaluates the role of public-private partnerships (PPPs) and foreign direct investment (FDI) in bridging the finance gap. The author argues that while port upgrades are progressing, the dilapidated state of railways undermines regional competitiveness. The document concludes with recommendations to prioritise the repair of existing narrow-gauge railways, improve PPP management, and implement targeted strategies to ensure that infrastructure investments translate into local skills transfer and employment.

• Tanzania possesses significant strategic potential as a regional maritime hub, but its infrastructure is underdeveloped compared to regional peers. In 2015, the World Economic Forum ranked Tanzania 104th out of 138 countries for overall infrastructure quality, trailing behind Kenya in roads, railways, and ports.
• The Dar es Salaam Port is Tanzania's most critical transport asset, with approximately 30% of its containers destined for landlocked regional countries. While the concession of container terminals to Tanzania International Container Services (TICTS) increased throughput by 20% to 500,000 TEUs, the port still suffers from long dwell times—averaging nine days—due to congestion and slow customs procedures.
• The Central Corridor Railway is in a state of severe decay, partly due to a failed PPP concession with the Indian company RITES between 2001 and 2011. This deterioration has shifted freight traffic to roads, leading to higher rail tariffs and further disinvestment in the rail system.
• Tanzania's transport infrastructure is central to several regional integration initiatives, including the EAC Common Market, the North–South Corridor Aid for Trade Programme, and the Tripartite Free Trade Area (TFTA). The Dar es Salaam Port serves as a primary maritime access point for landlocked countries in these frameworks.
• Public-private partnerships (PPPs) are increasingly promoted to bridge the infrastructure finance gap, but their implementation is hindered by a lack of government capacity, transparency in tendering, and a historical hesitation toward private investment. The 2010 National PPP Act and a 2015 amendment aimed to provide a better legal framework and coordinate authorities.
• Foreign direct investment (FDI) is seen as a necessary supplement to domestic and donor funding, though it remains low in the transport sector compared to mining or manufacturing. A proposed $10 billion Bagomoyo Port project intended to use Chinese and Omani FDI, but construction has been suspended.
• There is a significant gap in the transfer of skills and technology from foreign investors to the local population. Local employees are rarely appointed to management positions in PPPs, and Chinese investments are noted for bringing their own labour and equipment, which limits local capacity building.
• The author recommends that the government prioritise the repair of the existing narrow-gauge railway over the construction of a new standard-gauge railway to reduce costs and logistical burdens.

APA

MARKOWITZ, C. (2017). TANZANIA’S TRANSPORT HUB: WHAT PROSPECTS FOR REGIONAL TRADE AND LOCAL ECONOMIC DEVELOPMENT? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2017/06/Occasional-Paper-262.pdf

Chicago

MARKOWITZ, CHELSEA. TANZANIA’S TRANSPORT HUB: WHAT PROSPECTS FOR REGIONAL TRADE AND LOCAL ECONOMIC DEVELOPMENT? South African Institute of International Affairs, 2017. https://saiia.org.za/wp-content/uploads/2017/06/Occasional-Paper-262.pdf.

Wikipedia

{{cite report |last1=MARKOWITZ |first1=CHELSEA |title=TANZANIA’S TRANSPORT HUB: WHAT PROSPECTS FOR REGIONAL TRADE AND LOCAL ECONOMIC DEVELOPMENT? |publisher=South African Institute of International Affairs |date=June 2017 |url=https://saiia.org.za/wp-content/uploads/2017/06/Occasional-Paper-262.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{markowitz2017tanzanias, author = {MARKOWITZ, CHELSEA}, title = {{TANZANIA’S TRANSPORT HUB: WHAT PROSPECTS FOR REGIONAL TRADE AND LOCAL ECONOMIC DEVELOPMENT?}}, institution = {South African Institute of International Affairs}, year = {2017}, month = jun, url = {https://saiia.org.za/wp-content/uploads/2017/06/Occasional-Paper-262.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }