Tanzania has secured funding for the construction of a standard gauge railway linking Tanzania and Burundi. The TRC is managing a 2,561-kilometer line expanding from Dar es Salaam to Mwanza, with progress reported in various sections. International funding is set to commence construction soon, with expectations of substantial revenue increases following the launch of freight services in February.
The government of Tanzania has successfully secured funding for the construction of a significant segment of the standard gauge railway (SGR) that will interconnect Tanzania with Burundi. The Tanzania Railways Corporation (TRC) is spearheading the development of the extensive 2,561-kilometer railway network, which will connect the Indian Ocean port of Dar es Salaam to the city of Mwanza on Lake Victoria, and ultimately extend towards Burundi, the Democratic Republic of the Congo, Rwanda, and Uganda. Currently, the operational phase includes the section between Dar es Salaam and Dodoma, traversing through Morogoro, while other phases are still under construction. Mateshi Tito, the acting director general of the TRC, announced on Thursday that the Tanzanian government has finalized discussions with three international financial institutions—Standard Chartered, China Export and Credit Insurance Corporation (Sinosure), and the Africa Development Bank (AfDB)—to finance the stretch from Uvinza in Kigoma, Tanzania, to Musongati in Burundi. Though Mr. Tito refrained from disclosing the exact funding amount, he assured that contractual formalities will soon be finalized to initiate construction promptly. During a session for the parliamentary Public Investment Committee (PIC), Mr. Tito highlighted that progress is being made across various sections of the railway, indicating that the Makutupora-Tabora segment is 14.53 percent complete, while Tabora-Isaka stands at 6.14 percent. The Isaka-Mwanza section is significantly ahead at 60.62 percent completion, and the Tabora-Kigoma line is at 6.68 percent. Furthermore, discussions are ongoing with prospective investors for several SGR components, including the procurement of locomotives and the Mtwara-Mbamba Bay line. PIC chairman Augustine Vuma Holle remarked on the substantial investment of $10 billion into the railway’s construction. He expressed optimism regarding the commencement of freight train operations slated for next February, anticipating a threefold revenue increase. Since initiating SGR passenger services, the TRC has reportedly accrued over Tsh20 billion ($7.5 million), and Mr. Holle underscored that the railway typically generates more income from freight operations compared to passenger services, noting that freight usually accounts for 80 percent of income. Deputy Minister for Transport, David Kihenzile, conveyed his approval of the progress shared by the PIC, emphasizing the substantial investment involved in the SGR project and the government’s commitment to its diligent execution.
The construction of the standard gauge railway (SGR) is a strategic initiative by the Tanzanian government aimed at enhancing connectivity within East Africa. This railway segment will play a critical role in linking various countries, thereby facilitating trade and travel. Understanding the operational and financial aspects of this project, including securing international funding and the expected economic benefits, is essential for grasping its significance in regional development and trade enhancement.
In conclusion, the Tanzanian government’s recent achievement in securing funding for the SGR link to Burundi reflects a significant step towards improving regional transport infrastructure. With ongoing progress in various sections of the railway and anticipated increases in freight operations revenue, the project promises to bolster economic activities across East Africa. Continued cooperation with financial institutions and investors will be crucial for the successful completion of this expansive railway project.
Original Source: www.theeastafrican.co.ke
