China Civil Engineering Construction Corp (CCECC) is investing $1.4 billion to modernize the Tanzania-Zambia Railway (TAZARA). The project includes rehabilitating tracks and purchasing new locomotives and wagons, aiming to enhance trade and reduce transportation costs. The investment plan reflects a partnership with the governments of Tanzania and Zambia and is expected to improve logistics for the mining sector. Negotiations for a long-term concession are underway.
China Civil Engineering Construction Corp (CCECC) is set to invest over $1.4 billion to modernize the Tanzania-Zambia Railway (TAZARA), which connects Zambia’s copper mines to Tanzania’s largest port. This significant investment focuses on addressing the railway’s longstanding challenges by rehabilitating rail tracks and acquiring new locomotives and wagons. The project aims to enhance trade efficiency, improve logistical frameworks for the mining industry, and ultimately lower transportation costs.
TAZARA plays a vital role in facilitating copper exports from Central Africa while providing an alternative to the logistics hurdles currently experienced in South Africa. Negotiations for establishing a 30-year concession are ongoing, as stated by Bruno Ching’andu, the Managing Director of TAZARA. This concession aims to bring necessary improvements and operational sustainability to the railway system.
According to Ching’andu, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” The revitalization effort, backed by the governments of Tanzania and Zambia, includes a comprehensive investment package: $1 billion designated for the total rehabilitation of rail tracks and $400 million allocated for 32 new locomotives and 762 wagons.
TAZARA officials affirm that this investment will significantly boost trade relations between Tanzania and Zambia, enhance logistical capacities for the mining sector, and lower transportation expenses for both cargo and passenger services. This advancement arrives amid the United States supporting an alternative transport corridor, known as Lobito, centered on an Angolan port, highlighting increasing competition in regional infrastructure development.
In 2023, a memorandum of understanding was established between China, Tanzania, and Zambia to rehabilitate the 1,860-kilometer railway, originally constructed in the 1970s with support from Mao Zedong’s China. This marks the most extensive upgrade the railway has undergone in recent history, reaffirming its critical role in regional connectivity and economic growth.
In conclusion, the $1.4 billion investment by CCECC to modernize TAZARA marks a significant step in revitalizing this essential railway. With plans for track rehabilitation and the acquisition of new rolling stock, the investment aims to bolster trade efficiency, enhance logistics in the mining sector, and reduce transportation costs. This initiative highlights a strategic partnership between Zambia and Tanzania while also showcasing the competitive landscape of regional transportation infrastructure.
Original Source: africa.businessinsider.com
