Tanzania is turning to a new logistics facility near the Port of Dar es Salaam to ease congestion after cargo volumes surged beyond a capacity target that was initially expected to be reached in 2030.

The Kurasini Logistics Park is scheduled to begin operations in November and will function as an extension of the Dar es Salaam port, allowing containers to be transferred from the port for inspection, customs clearance and collection.

Transport Minister Makame Mbarawa said Kurasini would no longer operate merely as an Inland Container Depot (ICD), but would effectively become part of the port's operations.

“The main objective is to use this area as part of the port to significantly reduce congestion at the Dar es Salaam Port. Cargo will be discharged at the port, but the clearance process will be completed here,” Prof Mbarawa said during a recent inspection of the facility.

The move follows a sharp increase in traffic through Dar es Salaam, driven by infrastructure improvements and growing demand from Tanzania and land-linked countries that depend on the port for international trade.

According to the Tanzania Ports Authority (TPA), Dar es Salaam handled 33.7 million tonnes of cargo in the 2025/26 financial year, up from 27.7 million tonnes the previous year. The six-million-tonne increase represents growth of about 22 per cent in a single year.

The latest performance means the port has already surpassed its target of handling 30 million tonnes by 2030, four years ahead of schedule.

The growth has, however, created pressure beyond the port, particularly on roads used by trucks moving cargo into Dar es Salaam and to inland destinations.

The rapid growth at Dar es Salaam is increasing competitive pressure on Kenya's Port of Mombasa, although the two ports report their performance over different periods.

Mombasa handled a record 45.45 million tonnes in calendar 2025, up from 40.99 million tonnes in 2024, representing growth of 10.9 per cent. Container traffic increased 5.5 per cent to 2.11 million TEUs.

Dar es Salaam's latest annual throughput of 33.7 million tonnes is therefore about 11.8 million tonnes below Mombasa's 2025 figure. But the faster growth at Dar is significant as the two ports compete for regional transit cargo.

Mombasa handled 15.88 million tonnes of transit cargo in 2025, up 19.5 per cent from 13.29 million tonnes in 2024. Uganda, Rwanda, the Democratic Republic of Congo and other neighbouring markets were among the sources of growth.

Dar es Salaam serves Tanzania as well as land-linked markets including Zambia, Rwanda, Burundi, the DRC, Malawi and Uganda. TPA says the port handles about 95 per cent of Tanzania's international trade.

Prof Mbarawa said Kurasini would initially handle import containers, with export cargo potentially added later.

Containers discharged at Dar es Salaam will be transferred to the logistics park, where customs and other government agencies will undertake inspection and clearance. This is expected to free space at the main port for vessels and additional cargo.

The first phase of Kurasini has a capacity of 150,000 TEUs, while the second phase is expected to increase capacity to 700,000 TEUs. The facility was about 98 per cent complete when the minister inspected it.

The new arrangement will require changes to customs and security procedures. Prof Mbarawa directed that mobile scanners be installed at Kurasini so containers can be inspected there instead of being returned to the port.

He also directed that the road connecting the port to Kurasini be designated a Customs Bonded Road, enabling cargo to move between the two facilities under customs supervision.

The arrangement will require coordination between the Tanzania Revenue Authority, TPA, road agencies, security authorities and municipal officials.

Dar es Salaam Port Director Abed Galus Abed said the increase in cargo had translated into significantly more trucks on the city's roads.

The World Bank has recognized improvements at Dar es Salaam and indicated that the port could qualify for a second phase of the Dar es Salaam Maritime Gateway Project. The first phase was supported by a $421 million World Bank loan and a $64 million contribution from the Tanzanian government.

The developments point to a changing contest between Dar es Salaam and Mombasa.

The competition is no longer simply about which port can handle the most cargo. Increasingly, the critical measure will be how quickly cargo can be cleared, evacuated and delivered to its final destination.

Mombasa is also expanding, with projects including Berths 19B, 23 and 24 expected to significantly increase its container-handling capacity.