Tazara is set to receive a $1.4 billion investment from CCECC to rehabilitate railway operations. The deal includes $1 billion for track improvements and $400 million for new locomotives and wagons. This initiative aims to enhance safety, efficiency, and regional trade between Tanzania and Zambia under a 30-year concession agreement.
The Tanzania-Zambia Railway Authority (Tazara) is poised to receive a substantial investment of $1.4 billion from the China Civil Engineering Construction Corporation (CCECC) aimed at revitalizing its operations. This investment was announced by Mr. Bruno Ching’andu, Tazara’s managing director and CEO, during the Zambia International Mining and Energy Conference in Kitwe, Zambia. The negotiations with CCECC are ongoing as the firm was originally responsible for constructing the railway infrastructure.
The investment agreement includes a commitment of $1 billion to rehabilitate railway tracks to improve safety and efficiency, alongside an additional $400 million dedicated to acquiring 32 locomotives and 762 wagons. This enhancement will serve to bolster both freight and passenger transport services substantially. Tazara is transitioning towards this significant upgrade as part of a 30-year concession agreement that aims to transform the organization into a more efficient transport corridor.
Mr. Ching’andu stated that while negotiations continue, the investment marks the commencement of a new chapter for Tazara, positioning it as a fundamental facilitator of trade and economic growth between Tanzania and Zambia. The partnership is crucial for addressing operational challenges and restoring efficiency to the service.
The proposed agreement outlines that the rehabilitation will prioritize safety, efficiency, and capacity enhancements. The initial phase will focus on construction and rehabilitation during the first three years, followed by operational management for the subsequent 27 years to ensure sustainability. The Public-Private Partnership model was selected to align with the long-term vision of Tazara, providing a solution to long-standing challenges.
As the concessionaire, CCECC will oversee the immediate restoration of the railway as well as the provision of rolling stock, covering operational costs via concession fees payable to Tazara. Upon the conclusion of the concession, the rehabilitated assets will revert to Tazara. The initiative is expected to enhance regional trade by increasing annual tonnage from 500,000 metric tonnes to an anticipated two million metric tonnes while improving connectivity along the Dar es Salaam corridor.
In conclusion, the significant investment of $1.4 billion from CCECC represents a pivotal step towards upgrading the Tazara railway system. This initiative aims to enhance safety, efficiency, and transport capacity, ultimately positioning Tazara as a key player in regional trade and economic development between Tanzania and Zambia. The structured long-term agreement and strategic partnership provide a robust framework for sustainable operational improvements and connectivity.
Original Source: www.thecitizen.co.tz
