CCECC will invest over $1.4 billion to modernize the TAZARA railway, connecting Zambia’s copper mines to Tanzania’s largest port. This initiative will rehabilitate tracks and purchase new locomotives and wagons, intending to boost trade, improve logistics, and decrease transportation costs. A memorandum of understanding was signed in 2023 for this significant upgrade to the railway built in the 1970s.
China Civil Engineering Construction Corp (CCECC) is set to invest over $1.4 billion to modernize the Tanzania-Zambia Railway (TAZARA), a key transportation route linking Zambia’s copper mines to Tanzania’s largest port. This substantial investment aims to rehabilitate tracks, procure new locomotives, and acquire wagons to address existing challenges faced by TAZARA.
The modernization of TAZARA will enhance trade relations and logistics for the mining sector, thereby reducing transportation costs. The railway has been critical for copper exports from Central Africa, allowing shipments to bypass logistics bottlenecks encountered in South Africa.
Negotiations for a 30-year concession are currently in progress, as reported by Bruno Ching’andu, the managing director of the Tanzania-Zambia Railway Authority (TAZARA). This decision follows a thorough assessment of the railway’s challenges that highlighted the need for urgent action.
The comprehensive investment package includes $1 billion dedicated to rehabilitating TAZARA’s rail infrastructure and $400 million allocated for purchasing 32 new locomotives and 762 wagons. This coalition of the Tanzanian and Zambian governments with CCECC aims to revitalize a railway that has significantly deteriorated over the years.
TAZARA representatives assert that this investment will bolster trade between Tanzania and Zambia, streamline logistics for the mining industry, and lower transportation costs for both goods and passengers. This initiative emerges alongside competing transport corridors for minerals supported by the United States, particularly the Lobito corridor in Angola. A memorandum of understanding was signed in 2023 by China, Tanzania, and Zambia, signaling a renewed commitment to revitalizing the 1,860-kilometer railway originally constructed with assistance from China in the 1970s, marking its most significant upgrade to date.
In conclusion, the $1.4 billion investment by CCECC to modernize the TAZARA railway represents a critical step towards revitalizing trade and logistics between Zambia and Tanzania. The upgrades will address longstanding challenges, enhance the transport of minerals, and ultimately reduce costs for businesses and passengers alike. Furthermore, this modernization effort underscores the strategic importance of TAZARA in bypassing logistical hindrances posed by other regions.
Original Source: africa.businessinsider.com
