CCECC to Invest $1.4 Billion in Tanzania-Zambia Railway Upgrade

The China Civil Engineering Construction Corporation (CCECC) is investing $1.4 billion to upgrade the Tanzania-Zambia railway (TAZARA) over 30 years. This railway is essential for copper exports from central Africa, helping to bypass logistic bottlenecks in South Africa. TAZARA’s CEO emphasized the need for urgent intervention to modernize the railway, reflecting China’s commitment amidst rising competition for mineral transport.

The China Civil Engineering Construction Corporation (CCECC) has announced a substantial investment of $1.4 billion to enhance the Tanzania-Zambia Railway Authority (TAZARA) over a 30-year concession. This initiative comes as the demand for Africa’s critical minerals escalates. TAZARA serves as a vital pathway for copper exports from central Africa, enabling exporters to circumvent the logistical challenges found in South Africa, which have hindered the flow of copper and cobalt.

Bruno Ching’andu, the CEO of TAZARA Authority, stated, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” This investment is expected to address those longstanding issues and improve the efficiency of mineral transport.

China’s commitment to rejuvenating the aging TAZARA railway began last year amidst the backdrop of increased competition, particularly from U.S. support for the Lobito transport corridor originating from an Angolan port. This strategic move positions China favorably in the ongoing race for mineral transport capabilities in the region.

In summary, the $1.4 billion investment by CCECC in TAZARA is a significant step towards enhancing a crucial railway that facilitates copper and cobalt exports from central Africa. The initiative aims to alleviate logistical hurdles and reflects China’s strategic interests in African mineral resources, especially in light of U.S. competition in this sector.

Original Source: www.tradingview.com