The CCECC will invest $1.4 billion to upgrade the Tanzania-Zambia railway under a 30-year concession, enhancing transport for copper exports. This move addresses long-standing operational challenges and represents China’s commitment to revitalize TAZARA amid growing international competition for African minerals.
The China Civil Engineering Construction Corporation (CCECC) is set to invest $1.4 billion in the upgrade of the Tanzania-Zambia railway, known as TAZARA, under a 30-year concession. This investment comes as demand for Africa’s critical minerals intensifies as countries seek efficient transport routes.
TAZARA, a vital transport line primarily for copper exports from central Africa, serves to mitigate logistical challenges faced in South Africa, which have impacted copper and cobalt export efficiency. Bruno Ching’andu, the CEO of the TAZARA Authority, emphasized the necessity for this concession due to the railway’s persistent operational difficulties.
Last year, China made a commitment to rejuvenate the aging TAZARA, coinciding with the United States’ financial endeavors to support an alternative mineral transport corridor, known as the Lobito corridor, linked to an Angolan port. This strategic investment signifies a significant shift in the competitive landscape for mineral exports in the region.
In conclusion, the CCECC’s $1.4 billion investment into the Tanzania-Zambia railway marks a crucial development aimed at enhancing the transport infrastructure vital for mineral exports. The initiative is a direct response to logistical challenges and highlights the international competition for Africa’s valuable resources, particularly as nations strategize around supply chain efficiency.
Original Source: www.tradingview.com
