China’s CCECC will invest $1.4 billion to upgrade the Tanzania-Zambia railway, improving copper export logistics. The investment includes rail track rehabilitation and new locomotives and wagons, responding to longstanding operational challenges. While the deal reflects increased Chinese investment in Africa, negotiations are ongoing for final terms.
The China Civil Engineering Construction Corporation (CCECC) is set to invest $1.4 billion into upgrading the Tanzania-Zambia railway, known as TAZARA. This investment will enhance a critical route for copper exports from central Africa, which is significant given ongoing logistical challenges experienced in South Africa that have impacted copper and cobalt transport.
TAZARA’s CEO, Bruno Ching’andu, emphasized the need for urgent intervention, stating, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years.” Last year, China committed to revitalize the 50-year-old railway, coinciding with US support for an alternative transport corridor in Angola.
Of the total investment, approximately $1 billion will focus on rehabilitating TAZARA’s rail tracks. The remaining funds will facilitate the purchase of 32 new locomotives and 762 new wagons, significantly increasing operational capacity, Ching’andu reported.
The investment announcement was made during the Zambia International Mining and Energy Conference. CCECC’s engagement entails a 30-year concession, which will include three years dedicated to construction and 27 years for operation and maintenance. Negotiations for the final terms are still ongoing.
This investment reflects a notable resurgence in China’s lending to African nations, which has decreased significantly since peaking at $28.4 billion in 2016, hitting a 20-year low in 2022.
The investment by CCECC in the TAZARA railway marks a significant enhancement in infrastructure for copper exports, addressing transport challenges in the region. With a focus on upgrading rail tracks and acquiring new locomotives and wagons, this project underscores China’s renewed commitment to financing infrastructure in Africa after a recent decline. The partnership is structured to span three decades, promoting sustained operational efficiency and growth for TAZARA.
Original Source: www.miningmx.com
