China Civil Engineering Construction Corp (CCECC) is investing $1.4 billion to modernize the TAZARA railway line linking Zambia’s copper mines to Tanzania’s largest port, aiming to address existing operational challenges, enhance trade, and reduce transportation costs. The project includes rehabilitating rail tracks and purchasing new locomotives and wagons.
The China Civil Engineering Construction Corporation (CCECC) will invest over $1.4 billion to modernize the Tanzania-Zambia Railway Authority (TAZARA) line, which connects Zambia’s copper mines to Tanzania’s largest port. This substantial investment is designed to address the challenges faced by TAZARA, which include rehabilitating rail tracks and acquiring new locomotives and wagons.
The modernization efforts aim to bolster trade, enhance logistics within the mining sector, and reduce transportation costs. Serving as a vital route for copper exports from Central Africa, TAZARA provides an alternative to navigational delays experienced in South Africa, which have previously hindered copper and cobalt shipments.
Bruno Ching’andu, the managing director of TAZARA, confirmed that negotiations for a 30-year concession are ongoing. He noted, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” This indicates a calculated approach towards revitalizing the railway system.
The partnership between the governments of Tanzania and Zambia and state-owned CCECC aims to restore the railway that has significantly deteriorated over time. The investment allocation includes $1 billion earmarked for comprehensive rehabilitation of the railway tracks and $400 million dedicated to procuring 32 new locomotives and 762 wagons.
TAZARA officials anticipate that this modernization will greatly improve trade between Tanzania and Zambia, as well as enhance logistics and reduce transportation costs for both goods and passengers. This initiative coincides with U.S. support for a competing transport corridor referred to as Lobito, which is focused around an Angolan port.
In 2023, China, Tanzania, and Zambia formalized a memorandum of understanding for the rehabilitation of the 1,860-kilometer railway, originally constructed in the 1970s with Chinese support. This project represents the most significant upgrade TAZARA has undergone since its establishment, reflecting renewed commitment to regional infrastructure development.
In conclusion, the investment by CCECC signifies a pivotal enhancement to the TAZARA railway, aiming to revitalize trade routes and logistics between Zambia and Tanzania. With substantial funding allocated for both track rehabilitation and new rolling stock, this initiative promises to alleviate existing operational challenges and decrease transport costs. Furthermore, it underscores the collaborative efforts of both governments in addressing infrastructural needs and improving regional connectivity.
Original Source: africa.businessinsider.com
