[PRESSWIRE] Dodoma, Tanzania – 3 February 2026 — Tanzania’s transport reforms are starting to deliver tangible financial outcomes, with the state-owned Tanzania Railway Corporation (TRC) ending its reliance on government subsidies and covering operating costs from internal revenue, a development officials say strengthens the country’s case for infrastructure investment.

Transport Minister Makame Mbarawa said TRC has funded its wage bill and day-to-day operations without state support since December 2025, ending more than a decade of annual government subsidies of about 13 billion Tanzanian shillings ($5 million).

The shift is a key test of commercial viability for Tanzania’s rail sector as the government accelerates investments aimed at positioning the country as a logistics gateway for East and Central Africa.

During the first 100 days of President Samia Suluhu Hassan’s administration, TRC carried 836,870 passengers and moved 85,735 tonnes of cargo, with nearly 90% of passenger traffic using the electrified Standard Gauge Railway (SGR) between Dar es Salaam and Dodoma.

Officials say freight volumes are expected to rise as the SGR network expands and port capacity increases, improving end-to-end logistics for mining, agriculture and manufactured goods.

Construction is ongoing across the more than 1,200-kilometre SGR corridor linking Dar es Salaam to Mwanza, with additional connections planned towards Kigoma and regional markets including the Democratic Republic of Congo and Burundi.

Beyond rail, Tanzania is advancing a pipeline of investable transport projects. Rehabilitation of the Tanzania–Zambia Railway Authority (TAZARA) line is scheduled to begin in June following investor negotiations, targeting improved regional trade flows and higher throughput at the Port of Dar es Salaam.

Port expansion plans include 10 new berths and 15 oil storage tanks, increasing annual cargo-handling capacity to 50 million tonnes from 32 million tonnes. Construction of the first berths is expected to begin in 2026, while development of the Kurasini Logistics Terminal is underway to ease congestion and support time-sensitive cargo.

In aviation, national carrier Air Tanzania has expanded its network to 31 routes, while airport upgrades and greenfield projects are intended to support tourism and regional connectivity.

Government officials say the focus is shifting from state-backed expansion to commercially sustainable operations, a transition analysts say could improve bankability and attract private capital into Tanzania’s transport infrastructure.

– Tanzania Railway Corporation (TRC) is a state-owned enterprise responsible for rail transport services in Tanzania, operating both the legacy metre-gauge network and the new Standard Gauge Railway (SGR).

– The SGR is a flagship infrastructure project under President Samia Suluhu Hassan’s administration, designed to improve passenger mobility, lower freight costs and position Tanzania as a regional logistics hub for East and Central Africa.

– Ending reliance on government operating subsidies marks a significant milestone in TRC’s commercial sustainability and reflects broader transport-sector reforms aimed at improving efficiency and attracting private capital.

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