Tanzania Sets Aside 10bn/- to Support Construction of Major Cargo Vessel for Indian Ocean Trade

The government of Tanzania has set aside a total of 10bn/- to facilitate the implementation of an economic project for the construction of a major cargo vessel to transport cargo along the coastal part of the country’s Indian Ocean.

The amount, set aside during the 2026/27 financial year, will place Tanzania in a good position to ship cargo to Comoros, Seychelles and neighbouring Mombasa ports during the vessel’s initial operations.

The development, which targets to fuel the blue economy in Tanzania, was unveiled here yesterday by Deputy Minister for Transport, Mr David Kihenzile, during the ongoing parliamentary sessions.

He was responding to a question filed by Special Seats MP, Agnes Elias Hokororo.

The Minister said TASHICO was currently continuing with the procurement exercise in readiness to embark on the construction of the cargo-ferrying facility.

He said, according to the project’s implementation schedule, the procurement process is due to be finalised by December this year, after which a reliable contractor will be signed to construct and complete the vessel within two consecutive years.

According to TASHICO’s Managing Director (MD), Mr Eric Hamissi, upon completion, the vessel would start transporting cargo between the ports of Mtwara, Tanga and Dar es Salaam.

He noted that the implementation of the project is part of an array of initiatives that the state-owned marine entity is planning to enhance cargo shipping in Tanzania.

He detailed that feasibility studies and a detailed design for the construction of the ship are being conducted by the Dar es Salaam Merchant Group (DMG).

“The target is to determine the type and cargo-ferrying capacity of the ship we’re supposed to construct based on demand,” he said.

Five years ahead, he said, TASHICO is envisioning introducing a number of vessels into the Indian Ocean, including oil tankers, to sail to various distant destinations such as China and other countries abroad.

“The initiative will go in tandem with a robust project for the construction of a number of cargo and passenger ships on the country’s Great Lakes,” he unveiled.

He said the development will allow TASHICO to transport cargo to various ports in neighbouring countries such as Uganda, Rwanda, South Sudan, the Democratic Republic of Congo (DRC) and Kenya through the Great Lakes that pass within the country.

“For instance, we’re currently transporting cargo to Uganda to the extent of only 2 percent, but with the implementation of the project, we’re looking forward to using the potential market opportunity to increase this to at least 20 percent in the five years to come,” he stated.

Through teamwork with the TASHICO Board of Directors, he said several strategies are being planned for implementation to help transform the Mwanza-based entity into a reputable marine transport services provider across the continent.

Among the other landmark projects set for accomplishment this fiscal year, he added, is the construction of a major shipyard at Katabe Bay on Lake Tanganyika in Kigoma Region.

Costing over 324bn/- upon completion, the envisaged facility is expected to play a pivotal role in placing Tanzania at the helm of the shipbuilding sector within East and Central Africa.

With the capacity to harbour ships of at least 5,000 tonnes, apart from building and serving home vessels, the establishment will also play a notable role in repairing ships from neighbouring countries.

A contract for the construction of the vital marine facility was signed in 2023 between TASHICO and MM/S Dearsan Shipyard.

“The coming shipyard will have a vast dock, enough to enable the professional construction of ships at a fast pace,” MD Hamissi informed.

He hailed President Samia Suluhu Hassan for rolling out key support towards enabling TASHICO to accomplish its vital services and various projects, with an eye to elevating the performance and visibility of the sector in Tanzania.

TASHICO is a government-owned entity based in Mwanza, Tanzania, specialising in marine transport services across the Great Lakes, including Lake Victoria, Lake Tanganyika and Lake Nyasa.