China Civil Engineering Construction Corporation will invest $1.4 billion to enhance the Tanzania-Zambia Railway (TAZARA), crucial for copper exports. The investment targets railway rehabilitation and increased operational capacity with new locomotives and wagons. This project underscores China’s ongoing commitment to infrastructure improvements in Africa amid competition for transport corridor investments.
The China Civil Engineering Construction Corporation (CCECC) has announced an investment of $1.4 billion aimed at upgrading the Tanzania-Zambia Railway (TAZARA), an essential route for copper exports from central Africa. This investment, reported by Reuters, will help alleviate logistics challenges in South Africa, enhancing export efficiency for copper and cobalt.
Bruno Ching’andu, CEO of TAZARA Authority, emphasized that the decision was made following a thorough evaluation of the railway’s challenges, underscoring the pressing need for intervention. CCECC’s partnership to revitalize the 50-year-old railway was formalized last year amidst competition from U.S. support for a rival mineral transport corridor from Angola.
Approximately $1 billion of the investment will focus on rehabilitating TAZARA’s rail tracks, while the remaining funds will be allocated for acquiring 32 new locomotives and 762 new wagons to enhance operational capacity, according to Ching’andu. This announcement was made during the Zambia International Mining and Energy Conference, where Ching’andu addressed attendees about the project’s significance.
The investment agreement outlines a 30-year concession, comprising a three-year phase for construction and an extended 27 years for operation and maintenance, although negotiations are ongoing. This substantial investment by CCECC marks a critical moment in China’s financial engagement in Africa, which had previously declined, reaching a 20-year low in 2022 after its peak in 2016.
In conclusion, the $1.4 billion investment by CCECC in the Tanzania-Zambia railway is poised to significantly enhance the transportation infrastructure pivotal for copper exports. The project will assist in overcoming logistical hurdles in South Africa and stimulate China-Africa economic relations following recent low investment levels. With a structured concession period, this initiative represents strategic developments in both regional trade and investment activities.
Original Source: www.miningmx.com
