TRC Ends Subsidy Reliance as Tanzania Advances Transport Reform Agenda
Tanzania’s transport sector reforms are beginning to deliver measurable financial results, with the state-owned Tanzania Railway Corporation now covering its operating costs from internal revenue and no longer relying on government subsidies.
According to Transport Minister Makame Mbarawa, TRC has funded its wage bill and daily operations without state support since December 2025, ending more than a decade of annual subsidies estimated at 13 billion Tanzanian shillings. The development is viewed as a key indicator of improving commercial viability within the rail sector.
In the first 100 days of President Samia Suluhu Hassan’s administration, TRC transported 836,870 passengers and moved 85,735 tonnes of cargo, with approximately 90% of passenger traffic recorded on the electrified Standard Gauge Railway between Dar es Salaam and Dodoma.
Expansion of the more than 1,200 km SGR corridor towards Mwanza is ongoing, with further links planned to Kigoma and regional markets including the Democratic Republic of Congo and Burundi. Freight volumes are expected to increase as rail capacity expands in parallel with port upgrades.
Rehabilitation of the TAZARA line is scheduled to commence in June, subject to investor negotiations, aimed at strengthening regional trade and throughput at the Port of Dar es Salaam. Port expansion plans include 10 additional berths and 15 oil storage tanks, raising annual handling capacity from 32 million to 50 million tonnes. Development of the Kurasini Logistics Terminal is also underway to improve cargo flows.
Officials indicate that the broader policy shift is moving from state-backed expansion towards commercially sustainable operations, a transition expected to enhance bankability and attract private capital into Tanzania’s transport infrastructure.