Business

Mgao Island Cargo Port Hits 25% Completion as TZS 435B Investment Continues

Construction of the Mgao Island cargo port in Mtwara has reached 25%, according to the Tanzania Ports Authority. The TZS 435B project is scheduled for completion in July 2028 and is designed to handle hazardous and bulk cargo.

The project aims to improve the transportation and handling of cargoes such as coal, cement, chemicals, and fertilizers that were previously handled at Mtwara Port. The new port is being developed on Mgao Island and is intended to separate hazardous and so-called dirty cargo from the main port to improve safety and operational efficiency.

The Minister of Transport, Prof. Makame Mbarawa, stated this on December 19, 2025, during an inspection visit to the project. He said the port has been specially designed to transport and receive hazardous goods that were previously served by Mtwara Port. Prof. Mbarawa also directed that construction of the port should go hand in hand with the development of a 17 km four-lane road to address the expected increase in traffic generated by the project. He assured President Dr. Samia Suluhu Hassan that the Ministry of Transport and the Tanzania Ports Authority (TPA) will implement the project to high standards and ensure value for money as part of the government’s economic growth agenda. TPA Director General Plasduce Mbossa said the project has reached 25% of implementation. He said the port will increase the capacity of Mtwara Port to handle large and strategic cargoes and strengthen Tanzania’s regional competitiveness. Mtwara District Commissioner Abdallah Mwaipaya said local authorities have welcomed the project. He said completion of the port together with the four-lane road will bring major changes to port activities and support economic development for residents of Mtwara Region. The Mgao Island Port Construction Project is being implemented by China Harbour Engineering Company Limited. The project is expected to be completed in July 2028. Mtwara Region and Port Infrastructure Mtwara Region is located in southern Tanzania and serves as a key economic zone for the country’s Southern Corridor.

Read more at: https://www.tanzaniainvest.com/transport/mgao-island-cargo-port-mtwara-construction-update

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