Tanzania has secured a $2.2 billion deal with two Chinese companies for a railway project linking Dar es Salaam and Burundi. The rail will facilitate efficient nickel exports and enhance trade. The venture, supported by the African Development Bank, is expected to transport 3 million metric tonnes of ore per year and represents a significant bilateral initiative.
Tanzania has initiated a significant infrastructure project by finalizing a $2.2 billion agreement with two Chinese companies to construct a standard gauge railway connecting the port city of Dar es Salaam to a nickel mine in Burundi. The firms, China Railway Engineering Group and China Railway Engineering Design and Consulting Group, were selected by Tanzania Railways for this vital task. Transport Minister Makame Mbarawa emphasized that this development stems from a bilateral agreement between Tanzania and Burundi aimed at enhancing nickel exports and facilitating cross-border trade.
This railway construction project plays a crucial role in enhancing the efficiency of nickel exports, particularly from Burundi, where rich mineral deposits are located. The 282-kilometer railway will link Uvinza in Tanzania to Musongati in Burundi, providing a vital transport route for several minerals, including nickel, which has seen fluctuating prices yet has doubled in value over the past decade. The initiative is also expected to bolster economic ties between the two nations.
In summary, Tanzania’s collaboration with Chinese firms to build a $2.2 billion railway signifies a major step towards improving mineral transport and cross-border trade between Tanzania and Burundi. With an expected annual capacity of 3 million metric tonnes of ore, this railway is poised to enhance regional economic development significantly. The involvement of the African Development Bank in financing this important infrastructure further underscores its significance for the region’s economic future.
Original Source: www.globalconstructionreview.com
