The Tanzanian Government is investing heavily in the Standard Gauge Railway (SGR) project to transform the country's railway transportation into a regional hub. The project, which aims to connect Tanzania's eastern port of Dar es Salaam with two western branches, will link the country to neighboring countries such as Rwanda, Burundi, and the Democratic Republic of the Congo (DRC). The SGR project is divided into several phases, including the Makutopora-Tabora section, the Tabora-Isaka section, and the Tabora-Kigoma section.
The Tanzania Railway Corporation (TRC) Director General, Masanja Kadogosa, stated that the electrified SGR is the first of its kind in Tanzania since the country gained independence. Additionally, the government is implementing the Tanzania-Intermodal & Rail Development Project (TIRP) worth $300 million, which is aimed at improving the rail network, strengthening logistics in the port of Dar es Salaam and rail terminals, and enhancing rail operations.
The latest contract signed between the TRC and Chinese companies for the Tabora-Kigoma section brings Tanzania's investment in the SGR to $10.04 billion. President Samia predicts that once the SGR becomes fully operational, cargo transportation costs between the Dar es Salaam port and the DRC will reduce from a minimum of $6,000 per tonne to about $4,000. Furthermore, the transportation time will fall from 30 days by truck to 30 hours in 2027.
The completion of the SGR will enable Tanzania to better utilize its strategic geographical positioning to facilitate cross-border trade. The country needs 20,000 kilometers of railway network to link with the regional rail network, which is necessary for competitiveness and global region integration. Currently, Tanzania's railway system has two existing networks, one linking the East African nation to Zambia and the other connecting it to Kenya and Uganda.