Tazara is set to receive a $1.4 billion investment led by CCECC to overhaul railway operations. Funding will cover $1 billion for track rehabilitation and $400 million for new locomotives and wagons. The 30-year concession aims to transform Tazara into a reliable transport corridor, enhancing efficiency and trade between Tanzania and Zambia.
The Tanzania-Zambia Railway Authority (Tazara) is poised to receive a substantial investment of $1.4 billion from the China Civil Engineering Construction Corporation (CCECC). This investment aims to transform Tazara’s operations and enhance its transport services, with the announcement made by Mr. Bruno Ching’andu, Tazara’s managing director, during the Zambia International Mining and Energy Conference (ZIMEC 2025) in Kitwe, Zambia.
The proposed agreement entails an allocation of $1 billion for the rehabilitation of railway tracks to improve safety, efficiency, and capacity. Additionally, $400 million will be directed toward acquiring 32 locomotives and 762 wagons, supporting both freight and passenger transport. The negotiations involve CCECC, the original builder of the railway, indicating a continuing partnership established at the Forum on China–Africa Cooperation (FOCAC) last year.
Mr. Ching’andu emphasized that this investment is vital for reshaping Tazara into an efficient and reliable transport corridor. He stated that the implementation will occur under a 30-year concession agreement, marking a new era for the railway. This partnership is expected to address historical operational challenges while ensuring that Tazara remains competitive and sustainable in the region.
The investment will focus on comprehensive overhauls during the first three years, followed by complete operational management for the subsequent 27 years, thereby encouraging sustainable operations. CCECC, as the concessionaire, will manage immediate railway rehabilitation, supply rolling stock, and cover operational costs via concession fees. After the concession period, assets will revert to Tazara.
This initiative is anticipated to significantly bolster regional trade, reducing transportation costs and improving connectivity, particularly along the Dar es Salaam corridor. The projected annual tonnage is expected to increase from approximately 500,000 metric tonnes to nearly two million metric tonnes, underscoring the potential growth facilitated by this extensive investment. Historically, the Tazara railway, built between 1970 and 1975 with Chinese financing, has played a critical role in linking landlocked Zambia to international trade routes.
The imminent investment of $1.4 billion by CCECC into the Tanzania-Zambia Railway Authority is aimed at revitalizing and enhancing the functionality of the railway system. By rehabilitating tracks and procuring new locomotives, Tazara is set to become a vital transport corridor in the region. This partnership reflects a strategic move to address historical operational challenges and foster sustainable trade relations between Tanzania and Zambia.
Original Source: www.thecitizen.co.tz
