This study assessed the effects that cargo-handling system has on the performance of public institutions in Tanzania. The study aimed at investigating the setbacks of handling systems it effects and possible remedies in Tanzania Port Authority (TPA) Dar es Salaam Port. The study employed a case study design using interview and questionnaire that were used to collect data from 80 respondents who were randomly and purposively selected. The research study revealed that physical port arrangement is a major component of the handling system in which Dar es Salaam port enjoys the benefit that comes a long with its geographical location. However, the study also revealed finance as the major hindrance factor that challenges the daily operations of the port and further suggests that the government and management of the port should try to look for the alternative sources of fund to enhance the smooth running of ports’ daily operations. Finally, the study recommended that, there should be specialization of berth, need of having a modern cargo handling equipment’s, development of infrastructure of the port and private sector inclusion on the planning and execution of operations of the port in order to increase performance of the port