Tanzania has secured funding for a standard gauge railway linking to Burundi. Overseen by the TRC, the railway connects Dar es Salaam to Mwanza and extends regionally. TRC’s Mateshi Tito confirmed agreements with Standard Chartered, Sinosure, and AfDB, with construction expected to begin soon. Additional segments of the railway show significant progress towards completion, promising improved revenue from freight transport once operations commence.
The Tanzanian government has successfully secured financing for a section of the standard gauge railway (SGR) that will connect Tanzania with Burundi. The Tanzania Railways Corporation (TRC) is overseeing the project, which includes a total rail network spanning 2,561 kilometers from Dar es Salaam’s port to Mwanza, and ultimately extending to Burundi and other regional countries. Presently, the segment from Dar es Salaam through Dodoma is operational, while further sections are underway. Acting TRC Director General Mateshi Tito announced that negotiations with three international financial entities have concluded, enabling the construction between Uvinza in Tanzania and Musongati in Burundi. He stated, “The aforementioned lot will be facilitated by Standard Chartered, China Export and Credit Insurance Corporation (Sinosure), and the Africa Development Bank (AfDB). Very soon we are going to sign the contract to enable the construction of the section to begin.” However, he refrained from disclosing the specific funding amounts provided by these financial institutions. Progress is noteworthy across other segments of the rail line, with the Makutupora-Tabora section at 14.53 percent completion, while Tabora-Isaka has reached 6.14 percent. The Isaka-Mwanza segment has made significant advancements with 60.62 percent completed, and the Tabora-Kigoma section stands at 6.68 percent completion. Discussions continue with investors interested in the SGR project, which include procurement of locomotives and the construction of the Mtwara-Mbamba Bay line. Chairman of the Parliamentary Public Investment Committee (PIC), Augustine Vuma Holle, highlighted that approximately $10 billion has been allocated for the railway project. He expressed optimism regarding revenue generation, stating, “We are optimistic that once the freight train services commence next February, the revenue collected will increase threefold.” He noted the TRC has collected over Tsh20 billion ($7.5 million) since launching passenger operations, emphasizing the significance of freight services for overall revenue generation. Deputy Minister for Transport David Kihenzile conveyed satisfaction concerning the optimistic feedback from the PIC, assuring that the government is committed to the SGR project due to its substantial investment demands and potential economic impacts.
The development of the standard gauge railway (SGR) is a pivotal infrastructure project for Tanzania, aimed at enhancing regional connectivity and economic growth. Spanning a substantial distance, the SGR links major economic hubs and ports, facilitating trade and transport within the East African region. The project is part of a broader initiative to modernize transportation infrastructure, promote investment, and stimulate the economy by increasing accessibility and reducing transportation costs across national borders.
In summary, the Tanzanian government is progressing with its ambitious SGR project, having secured financing to connect with Burundi. The construction is being overseen by TRC, with notable advancements in various segments of the railway. As freight services are anticipated to increase revenue significantly, the government remains committed to establishing an efficient transport network that fosters economic development in the region.
Original Source: www.theeastafrican.co.ke
