Tuesday, April 15, 2025

A New Chapter in Tanzania-Zambia Rail Connectivity with $1.4 Billion Chinese Investment

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The Tanzania-Zambia Railway Authority (TAZARA) is poised to undergo a transformative revitalization, thanks to a substantial investment exceeding $1.4 billion from the China Civil Engineering Construction Corporation (CCECC). This initiative was officially announced by TAZARA Managing Director and CEO, Eng. Bruno Chingandu, at the Zambia International Mining and Energy Conference (ZIMEC 2025) held in Kitwe, Zambia.

This ambitious investment is set to overhaul TAZARA’s infrastructure and operations. Under a 30-year concession agreement with CCECC, $1 billion will be allocated to rehabilitate the railway track infrastructure, significantly boosting safety, efficiency, and capacity. An additional $400 million will be dedicated to procuring 32 new locomotives and 762 new wagons, thereby enhancing both freight and passenger transport capabilities.

Eng. Bruno Chingandu emphasized, “This concession marks the dawn of a new era for TAZARA. The CCECC investment will not only rejuvenate our railway infrastructure but also cement TAZARA’s role as a vital conduit for trade and economic growth between Tanzania and Zambia.”

The concession agreement, structured as a Public-Private Partnership (PPP), aligns with TAZARA’s long-term objectives and shareholder interests. The agreement entails a three-year phase of construction and rehabilitation, followed by 27 years of full operational management by CCECC. As the concessionaire, CCECC will oversee the immediate rehabilitation, supply of rolling stock, and operational costs through concession fees payable to TAZARA. At the end of the concession, CCECC will return fully rehabilitated assets to TAZARA.

This investment forms part of a broader trend of Chinese-supported infrastructure projects across Africa, many of which are integrated into China’s Belt and Road Initiative. In a related development earlier this year, Tanzania and Burundi secured a $2.15 billion agreement with Chinese firms to develop a railway for transporting metals, including nickel, to Dar es Salaam, funded in part by the African Development Bank (AfDB).

Transportation economist Dr. Ahmed Salim from the University of Dar es Salaam describes the investment as a “game-changer” for regional connectivity. “The revitalization of TAZARA will streamline transportation logistics, reduce transit times, and lower costs,” he noted. According to the African Development Bank, improved rail infrastructure can enhance GDP growth by up to 2% in the region by facilitating trade and reducing transportation bottlenecks.

As TAZARA embarks on this ambitious journey, the successful implementation of the concession is pivotal to realizing its potential benefits. With CCECC’s expertise and the support of international stakeholders, TAZARA aims to emerge as a competitive and sustainable transport solution, fostering economic development across Tanzania and Zambia.

This development not only underscores the strategic importance of African rail networks but also highlights the potential for international partnerships to drive infrastructure growth.

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