The China Civil Engineering Construction Corporation (CCECC) will invest $1.4 billion to upgrade the Tanzania-Zambia railway under a 30-year concession. This investment is critical for easing logistics bottlenecks in South Africa and enhancing copper exports from Central Africa. CEO Bruno Ching’andu emphasized the urgent need for intervention due to TAZARA’s longstanding challenges, amidst competition from a rival transport corridor backed by the United States.
The China Civil Engineering Construction Corporation (CCECC) has declared plans to invest $1.4 billion in the enhancement of the Tanzania-Zambia railway, operating under a 30-year concession. This investment is crucial as the railway plays a vital role in transporting copper from Central Africa, providing an alternative to the logistical challenges faced in South Africa, which have hindered the export of copper and cobalt.
Bruno Ching’andu, the CEO of the TAZARA Authority, stated, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” The investment aims to address these challenges, significantly impacting the efficiency of mineral transport in the region.
This initiative is part of a larger strategy as China seeks to support the revitalization of TAZARA after years of decline. This move comes at a time when the United States is financing a competing transport corridor known as Lobito, which connects to an Angolan port, highlighting the competitive nature of the mining logistics market in Africa.
In conclusion, the $1.4 billion investment by CCECC in the Tanzania-Zambia railway marks a significant step towards enhancing mineral transport in Central Africa. The concession aims to address historical challenges faced by TAZARA, enabling more efficient exports of copper and cobalt. With growing competition in the African logistics sector, this investment underscores China’s commitment to revitalizing key transport routes amidst geopolitical maneuvers.
Original Source: thefinancialexpress.com.bd
