Tanzania to set up oil tanks at Dar Port

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Tanzania to set up oil tanks at Dar Port

Tanzania is set to have oil tanks developed in at the Dar es Salaam port. The move represents a significant investment in enhancing cargo handling efficiency and infrastructure at the Dar es Salaam port, which is crucial for the country’s economy and trade.

The government awarded the project to two Chinese firms; China Railway Major Bridge Engineering Group Co., Ltd, and Wuhan Engineering Co., Ltd and the development is at US $266M.

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Project’s benefits

Minister for Transport Makame Mbarawa who announced the contracts said the project will involve the construction of 15 tanks with a total storage capacity of 420,000 cubic meters for petroleum products. Each of the 15 tanks will have a capacity to store 30,000 cubic meters of petroleum products. The tanks will be designated for diesel storage, petrol, jet fuel, and the interface process.

The development is scheduled to be completed within two years from the announcement upon which the tanks are expected to significantly reduce the time ships spend offloading petroleum products at the port. The unloading time is projected to decrease from the current average of 11 to 12 days to three to four days.

The construction of the tanks is expected to yield several benefits, including a potential reduction in fuel prices, mitigation of oil loss issues at the port, and a decrease in complaints among oil traders. Additionally, it’s anticipated to improve revenue collection as all oil will be received, properly measured in one place, and under the authority of the port before distribution.