CCECC will invest $1.4 billion in the Tanzania-Zambia railway (TAZARA) via a 30-year concession. This upgrade addresses longstanding operational challenges, facilitating copper exports while bypassing South African logistics issues. This initiative emphasizes China’s commitment in contrast to U.S. investments in rival mineral transport corridors.
The China Civil Engineering Construction Corporation (CCECC) is set to invest $1.4 billion to enhance the Tanzania-Zambia railway through a 30-year concession. This move comes as the demand for Africa’s critical minerals intensifies. The railway, commonly referred to as TAZARA, functions as a vital artery for copper exports from central Africa, offering an alternative to the congested logistics in South Africa that have impeded exports of copper and cobalt.
Bruno Ching’andu, CEO of TAZARA Authority, remarked, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” In the previous year, China pledged its support for the revitalization of the long-standing TAZARA, coinciding with the United States investing in a competing transport corridor for minerals, known as Lobito, linked to an Angolan port.
In summary, CCECC’s substantial investment in the Tanzania-Zambia railway represents a significant advancement in addressing the logistical challenges faced by copper exporters in central Africa. The commitment highlights China’s growing influence in the region as competition for essential mineral resources escalates, contrasting with U.S. efforts to establish alternative transport routes.
Original Source: www.tradingview.com
