The China Civil Engineering Construction Corporation will invest $1.4 billion to upgrade the Tanzania-Zambia railway (TAZARA) to enhance copper exports from central Africa. The investment includes $1 billion for rail track rehabilitation and additional funds for new locomotives and wagons. A concession agreement of 30 years will involve three years of construction and ongoing operation.
The China Civil Engineering Construction Corporation (CCECC) has committed $1.4 billion to upgrade the Tanzania-Zambia railway, known as TAZARA. This investment is anticipated to enhance the critical route for copper exports originating from central Africa and serve as an alternative to logistical bottlenecks in South Africa that impede the export of copper and cobalt.
Bruno Ching’andu, CEO of the TAZARA Authority, emphasized the necessity of this concession, stating that it followed a thorough evaluation of the railway’s challenges, which necessitated immediate action. A deal was signed last year to revitalize the aging 50-year-old TAZARA railway, amidst increased support from the US for a competing mineral transport corridor.
Approximately $1 billion of the investment will focus on rehabilitating TAZARA’s rail tracks, while the remaining funds will acquire 32 new locomotives and 762 new wagons to enhance transport capacity. Ching’andu made these announcements during the Zambia International Mining and Energy Conference, addressing an audience of investors and industry executives.
The concession is structured to include three years for construction followed by 27 years dedicated to operation and maintenance. Negotiations concerning the final terms of the agreement are still ongoing. This investment represents a notable rebound in China’s financial engagement with Africa, which had reached a two-decade low in 2022 after peaking in 2016.
In conclusion, the investment by CCECC signifies a vital opportunity for the enhancement of the TAZARA railway, essential for boosting copper exports from central Africa. The allocated funds aim to rehabilitate key infrastructure and expand transport capacity, addressing logistical challenges. As negotiations progress for the long-term concession, this development marks a significant milestone in China’s renewed financial commitment to the African continent.
Original Source: www.miningmx.com
