Tazara is set to receive a $1.4 billion investment from CCECC for an overhaul. The funding will facilitate the rehabilitation of railway tracks and procurement of new locomotives and wagons. This strategic partnership aims to improve efficiency, safety, and regional trade connectivity through 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) for operational overhaul. This funding was announced by Mr. Bruno Ching’andu, Tazara’s managing director and chief executive officer, at the Zambia International Mining and Energy Conference (ZIMEC 2025) in Kitwe, Zambia, highlighting a crucial advancement for the railway’s future.
Under the proposed investment plan, CCECC will allocate $1 billion to rehabilitate Tazara’s railway tracks, aimed at enhancing safety, efficiency, and capacity. Additionally, $400 million will be designated for the acquisition of 32 locomotives and 762 wagons, thereby augmenting freight and passenger transport services.
The agreement signifies a continuation of negotiations between Tazara and CCECC, which originally constructed the railway infrastructure. A memorandum of understanding was established during the Forum on China–Africa Cooperation (FOCAC), underscoring commitment between China, Tanzania, and Zambia to improve the railway system.
Mr. Ching’andu emphasized the transformative potential of this concession agreement, stating it will pave the way for a more efficient transport corridor between Tanzania and Zambia. The 30-year concession agreement aims to revitalize Tazara’s operations substantially over an extended period after initial rehabilitation efforts.
The strategic partnership between Tazara and CCECC is anticipated to address logistical challenges effectively, allowing for routine maintenance and overhauls throughout the concession’s lifespan. Operational management will transition to CCECC after an initial focus on construction and rehabilitation over the first three years.
CCECC will assume responsibility for immediate railway rehabilitation while also covering operational costs through concession fees payable to Tazara. At the conclusion of the concession period, ownership of the rehabilitated assets will revert to Tazara, ensuring long-term stability for the railway services.
The investment is expected to boost regional trade and significantly reduce transportation costs, aiming to elevate annual tonnage transported from the average of 500,000 metric tonnes to nearly two million. The strategic 1,860-kilometre railway line serves as a vital link between Zambia’s Copperbelt region and Dar es Salaam Port, further facilitating economic independence for Zambia.
In summary, Tazara’s anticipated $1.4 billion investment from CCECC marks a pivotal development in enhancing railway operations. The investment focuses on infrastructural rehabilitation and the procurement of new rolling stock to improve transport services. This partnership aims to strengthen regional trade, reduce costs, and support sustainable operations over a 30-year term, addressing long-standing operational challenges while returning rehabilitated assets to Tazara upon concession completion.
Original Source: www.thecitizen.co.tz
