CCECC is investing over $1.4 billion to modernize the Tanzania-Zambia Railway Authority (TAZARA) line, enhancing its capacity and efficiency. The investment includes rehabilitation of rail tracks and new locomotives, aiming to strengthen trade and reduce logistics costs. The project represents a joint effort by the governments of China, Tanzania, and Zambia to restore a vital transport route for copper exports.
The China Civil Engineering Construction Corp (CCECC) is set to invest over $1.4 billion for the modernization of the Tanzania-Zambia Railway Authority (TAZARA) line. This initiative aims to enhance the connection between Zambia’s copper mines and Tanzania’s largest port by rehabilitating existing rail tracks, and acquiring new locomotives and wagons.
The upgrades are expected to bolster trade, streamline logistics for the mining sector, and lower transportation costs overall. TAZARA, operating as an essential route for copper exports from Central Africa, provides an alternative to logistics challenges faced in South Africa.
Bruno Ching’andu, managing director of TAZARA, confirmed that a 30-year concession is currently under negotiation. He stated, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.”
The investment breakdown includes $1 billion dedicated to the complete rehabilitation of TAZARA’s rail tracks and $400 million earmarked for purchasing 32 new locomotives and 762 wagons. This restoration effort is a collaboration between the governments of Tanzania, Zambia, and CCECC, addressing the railway’s previous state of disrepair.
Officials from TAZARA anticipate that the upgrades will enhance trade between Tanzania and Zambia while improving logistics and reducing costs for both commercial and passenger transport. Additionally, this investment initiative aligns with efforts from the United States, which is promoting an alternative transport corridor for minerals through Angola.
A memorandum of understanding to rehabilitate the 1,860-kilometer TAZARA railway—initially funded and built by China in the 1970s—was signed by China, Tanzania, and Zambia in 2023, marking the most significant update to the railway since its inception.
The $1.4 billion investment by CCECC in the TAZARA railway provides a crucial opportunity to revitalize a historic transportation corridor. By addressing infrastructure challenges and expanding capacity, this initiative aims to enhance trade between Zambia and Tanzania, significantly improve logistics, and reduce transportation costs. The cooperation of the respective governments underscores the importance of this project in the context of regional trade dynamics.
Original Source: africa.businessinsider.com
