China’s CCECC will invest $1.4 billion to upgrade the Tanzania-Zambia railway over 30 years, addressing logistical issues faced by copper exporters in central Africa. This investment follows an assessment of TAZARA’s challenges and comes amid competition with US-backed transport corridors.
The China Civil Engineering Construction Corporation (CCECC) plans to invest $1.4 billion in the Tanzania-Zambia railway (TAZARA) as part of a 30-year concession agreement. This investment aims to upgrade the railway line, which is crucial for copper exports from central Africa, especially amid increasing competition for Africa’s essential minerals.
TAZARA serves as an important transport route that allows copper exporters to avoid logistics challenges prevalent in South Africa, which have previously hindered the shipment of copper and cobalt. The move to grant this concession comes after a thorough assessment of the ongoing challenges faced by TAZARA, indicating the need for immediate action.
Bruno Ching’andu, the CEO of TAZARA Authority, commented on the decision, highlighting the growing urgency to address these challenges for the railway’s future. This investment follows China’s earlier pledge to support TAZARA’s revival, coinciding with the United States’ focus on developing an alternative mineral transport corridor via Lobito, Angola’s port.
China’s CCECC is set to significantly improve the Tanzania-Zambia railway with a $1.4 billion investment through a 30-year concession, addressing long-standing challenges faced by TAZARA. This upgrade is pivotal for ensuring efficient copper and cobalt exports from central Africa while effectively competing against alternative transport routes backed by the US. CEO Bruno Ching’andu emphasizes the urgent need for this intervention to revitalize TAZARA.
Original Source: www.tradingview.com
