Railway Across Tanzania: Yapı Merkezi Construction's SGR Journey

Turkish major contractor Yapı Merkezi Construction is building all four lots of East Africa’s largest infrastructure project single-handedly, making its mark on the transformation of the continent.

One of Africa’s most ambitious infrastructure undertakings, Tanzania’s Standard Gauge Railway (SGR) project entered 2026 having crossed critical milestones — both on the ground and in the financial markets. At the heart of this historic transformation stands Yapı Merkezi Construction and Industry Inc., the Turkish contractor that has taken on the first four lots of the project, delivering the entire 1,255 km corridor from Dar es Salaam to Isaka under a single hand.

A New Era on the Rails

Tanzania’s SGR stretches a total of 1,255km, linking the port of Dar es Salaam on the Indian Ocean to the country’s interior and its landlocked neighbours.

The first two lots constructed by Yapı Merkezi Construction have been completed and are now in commercial operation:

Lot 1: Dar es Salaam – Morogoro (201 km)
Lot 2: Morogoro – Dodoma – Makutupora (335 km)

Tanzania’s President Dr. Samia Suluhu Hassan officially inaugurated the Dar es Salaam–Dodoma line on August 1, 2024, in a landmark ceremony. The results delivered in less than a year since opening are nothing short of remarkable:

Travel time between Dar es Salaam and Dodoma has been cut from a 12-hour road journey to approximately 3,5 hours by rail.

This single figure speaks volumes about the transformative impact the new railway is already having on the daily lives of Tanzanian people. To date, the line has carried approximately 6 million passengers.

Construction Continues: Lots 3 and 4

Yapı Merkezi Construction’s commitment to Tanzania extends well beyond the sections already in service. The company has also taken on two further critical lots that will extend the corridor westward:

Lot 3: Makutupora – Itigi – Tabora (368 km) — Contract value: USD 1.9 billion
Lot 4: Tabora – Isaka (130 km) — Contract value: USD 0,9 billion

Across all four lots, Yapı Merkezi Construction is delivering the entire approximately 1,255 km corridor from Dar es Salaam to Isaka — making this the longest railway line ever constructed by a Turkish contractor and the fastest railway project in East Africa.

As the Engineering, Procurement and Construction (EPC) contractor, Yapı Merkezi Construction’s scope goes far beyond civil works. The company is delivering a fully turnkey solution encompassing trackworks, catenary power supply, signaling and telecommunications systems.

April 2026: A Historic Financial Close

Perhaps the most defining milestone of the project came in April 2026.

Standard Chartered Bank successfully arranged a syndicated financing package exceeding USD 2.33 billion for the Tanzania SGR project. The agreement was formalised at a landmark signing ceremony held on April 29, 2026, in Tanzania’s capital, Dodoma.

The structure of the financing package reflects the depth of confidence the international community has placed in this project. The funding allocated for Lots 3 and 4 comprises two key components and is intended to be utilised exclusively by Yapı Merkezi Construction for the execution of its contracted scope under Lots 3 and 4 and not by Chinese contractors or for other lots outside Yapı Merkezi Construction’s scope:

USD 1.39 billion — Export Credit Agency (ECA) financing signed in 2026 (Sweden’s EKN, Poland’s KUKE, Italy’s SACE and Türkiye’s Türk Eximbank)
USD 462 million — Long-term financing from commercial banks and development finance institutions, secured in 2023

The deal attracted wide coverage from leading global financial media, including Bloomberg, propelling Tanzania to the forefront of the global infrastructure investment agenda and cementing the SGR as one of the most bankable PPP structures on the continent.

A Game-Changer for Tanzania and East Africa

The SGR project has long transcended its identity as a transport corridor. It is, in every measurable sense, an engine of regional development.

Employment: The project has to date created more than 30,000 direct jobs and approximately 150,000 indirect jobs, while engaging over 2,500 local suppliers and subcontractors. The construction of Lots 1 and 2 alone generated 12,000 new employment opportunities. Through local employment, subcontracting, procurement, logistics, accommodation, transportation and various service-related activities, it is estimated that more than 50% of the contract value has directly or indirectly contributed to the Tanzanian local economy, creating a strong multiplier effect across the regions along the railway corridor.

Logistics Transformation: Tanzania’s Minister of Transport, Prof. Makame Mbarawa, has described the SGR as the country’s most strategic infrastructure investment, emphasising that the line is designed to position Tanzania as a competitive regional logistics hub.

Freight Growth: The Tanzanian government projects that the SGR will increase rail’s share of freight transport from the current 2 percent to 30 percent by 2030 — substantially easing pressure on road networks and reducing costs associated with road maintenance and traffic accidents.

Port Connectivity: With the Dar es Salaam port-link connection now completed and the first container trains having started operation on May 10, 2026, the SGR has begun fulfilling one of its most important strategic objectives: shifting freight from road to rail and creating a more efficient, reliable, and cost-effective logistics chain from the port to inland destinations.

Regional Connectivity: Once complete, the line will connect the Port of Dar es Salaam directly to landlocked neighbors including Rwanda, Burundi and Uganda, delivering a historic competitive advantage to interior regions that currently face some of the highest logistics costs anywhere on the continent.

Not long ago, this project was described as “too difficult to finance.” Today, it answers that scepticism with railway stretching across the country, trains in service, and growing confidence from investors around the world.

Tanzania’s SGR is no longer simply an infrastructure project. It is the most tangible proof of Africa’s transformation and of Yapı Merkezi Construction’s pioneering role in making that transformation a reality.

Project at a Glance

Indicator	Data
Total SGR length (Lots 1–5)	1,255 km (main line)
Section delivered by Yapı Merkezi Construction	Lots 1–4 / ~1,225 km
Line in operation	Dar es Salaam – Dodoma
Total passengers carried	~6 million
Travel time (Dar es Salaam–Dodoma)	~3,5 hours (formerly 12 hours by road)
Lot 3 contract value	USD 1.9 billion
Lot 4 contract value	USD 0,9 billion
April 2026 financing package (Lots 3–4–5)	USD 2.33 billion
Direct jobs created	30,000+
Indirect jobs created	~150,000
Local suppliers/subcontractors	2,500+ firms
Contribution to the Tanzanian local economy	More than %50 of contract value

Web

Content Visibility:

SEO Title
Railway Across Tanzania: Yapı Merkezi Construction’s SGR Journey

SEO Description
Yapı Merkezi Construction is delivering Tanzania’s SGR corridor from Dar es Salaam to Isaka, with sections in operation, Lots 3 and 4 under construction, and major financing secured.

SEO Keywords
Yapı Merkezi Construction, Tanzania SGR, Standard Gauge Railway, Tanzania Standard Gauge Railway, Dar es Salaam to Isaka, Dar es Salaam to Dodoma, Dar es Salaam to Morogoro, Morogoro to Dodoma, Makutupora to Tabora, Tabora to Isaka, Tanzania railway, East Africa infrastructure, Tanzania rail project, SGR financing, Standard Chartered Bank, ECA financing, Türk Eximbank, EKN, KUKE, SACE, Tanzania logistics hub, Dar es Salaam port, container trains, railway freight Tanzania, rail passenger Tanzania, Tanzania regional connectivity, East Africa rail corridor