China’s $1.4 Billion Investment to Modernize Tanzania-Zambia Railway

China Civil Engineering Construction Corp will invest $1.4 billion to modernize the TAZARA railway, enhancing trade links between Zambia’s copper mines and Tanzania’s port. The project will rehabilitate tracks, purchase new locomotives, and improve logistics for the mining sector, reducing transportation costs. Discussions for a 30-year operational concession are ongoing, marking a significant upgrade since the railway’s construction in the 1970s.

China Civil Engineering Construction Corp (CCECC) is set to invest over $1.4 billion to modernize the Tanzania-Zambia Railway (TAZARA), which links Zambia’s copper mines to Tanzania’s largest port. This substantial investment aims to address TAZARA’s longstanding challenges, facilitating the rehabilitation of rail tracks and the acquisition of new locomotives and wagons. The initiative is anticipated to enhance trade, streamline logistics within the mining sector, and lower transportation costs significantly.

The TAZARA railway serves as a vital conduit for copper exports from Central Africa, providing a much-needed alternative to the logistical hindrances experienced in South Africa. These constraints have historically led to delays in shipping copper and cobalt. Presently, discussions regarding a 30-year concession for the railway’s operation are ongoing with Bruno Ching’andu, the managing director of TAZARA, emphasizing the need for rapid intervention to address operational challenges.

Bruno Ching’andu explained, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” This joint effort involving the governments of Tanzania and Zambia alongside CCECC aims to revive the railway, which has suffered deterioration over the years.

The investment plan allocates $1 billion for the comprehensive rehabilitation of TAZARA’s rail infrastructure and $400 million for the procurement of 32 new locomotives and 762 wagons. TAZARA officials have indicated that these improvements will bolster trade between Tanzania and Zambia, as well as enhance logistics for both the mining industry and passengers.

In light of these developments, it is noteworthy that the United States is currently advocating for a rival transport corridor named Lobito, which focuses on an Angolan port for mineral exports. Furthermore, a memorandum of understanding signed by China, Tanzania, and Zambia in 2023 earmarks the rehabilitation of the 1,860-kilometer railway, initially constructed with assistance from China in the 1970s, marking the most substantial upgrades since then.

In summary, CCECC’s investment into the TAZARA railway represents a crucial step towards modernizing a vital transport link for mining exports between Tanzania and Zambia. The project is expected to not only rehabilitate infrastructure but also significantly enhance trade and reduce costs in the region. This endeavor underscores the collaborative efforts between the governments and China to revitalize key infrastructure, emphasizing the railway’s historical significance and future potential.

Original Source: africa.businessinsider.com