China’s CCECC will invest $1.4 billion to upgrade the Tanzania-Zambia Railway (TAZARA) through a 30-year concession. The investment addresses logistical challenges for copper exports and follows an evaluation of TAZARA’s needs. This initiative comes at a time when the US is backing a rival mineral transport corridor.
The China Civil Engineering Construction Corporation (CCECC) announced a significant investment of $1.4 billion to upgrade the Tanzania-Zambia Railway (TAZARA) through a 30-year concession. This strategic investment comes as competition intensifies for Africa’s essential minerals, particularly copper and cobalt, which are crucial for various industries.
TAZARA serves as a vital transportation route for copper exports from central Africa, effectively circumventing the logistical challenges faced in South Africa that have historically delayed the shipping of these minerals. Addressing these challenges is essential to facilitating smoother exports and enhancing regional economic growth.
Bruno Ching’andu, the CEO of TAZARA Authority, stated, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” This development underscores the urgent need for upgrades and efficient management of the railway infrastructure.
Last year, China pledged to support the revival of TAZARA amidst evolving geopolitical dynamics, particularly as the United States invested in a competing transport corridor, the Lobito corridor, linked to an Angolan port. This move reflects the strategic importance of rail infrastructure in the context of global mineral supply chains.
The investment by CCECC in TAZARA highlights the critical role of railway infrastructure in facilitating the export of essential minerals from central Africa. This concession aims to address long-standing challenges faced by the railway and improve logistical efficiency amid increasing competition for resources. The commitment from China to revitalize TAZARA contrasts with the initiatives from the United States to support alternative mineral transport corridors, indicating a competitive landscape in infrastructure development.
Original Source: www.tradingview.com
