Tazara to Receive $1.4 Billion Investment for Operational Rejuvenation

Tazara is to receive a $1.4 billion investment from CCECC, aimed at overhauling railway operations. The funding includes $1 billion for track rehabilitation and $400 million for new locomotives and wagons. This partnership is set to enhance freight capacity and promote trade between Tanzania and Zambia over a 30-year concession agreement.

Tanzania-Zambia Railway Authority (Tazara) is poised to receive a significant $1.4 billion investment from the China Civil Engineering Construction Corporation (CCECC) aimed at overhauling its operational capabilities. The funding includes $1 billion dedicated to rehabilitating railway tracks to enhance safety and operational efficiency, alongside $400 million for the acquisition of 32 locomotives and 762 wagons to improve freight and passenger transportation.

This announcement was made by Mr. Bruno Ching’andu, Tazara’s Managing Director and Chief Executive Officer, during the Zambia International Mining and Energy Conference (ZIMEC 2025) held in Kitwe, Zambia. Currently, negotiations are ongoing between Tazara and CCECC, a company that originally constructed the railway infrastructure.

In conjunction with the recent memorandum of understanding signed in Beijing, during the Forum on China-Africa Cooperation (FOCAC), this investment marks a significant advancement towards concessioning the railway. Mr. Ching’andu noted that the partnership with CCECC would bolster Tazara’s capacity as a transportation corridor between Tanzania and Zambia, thereby promoting regional economic growth.

The proposed 30-year concession will facilitate significant upgrades, with emphasis on track rehabilitation in the initial three years, followed by operational management for the subsequent 27 years. Mr. Ching’andu recognizes this concession as a pivotal opportunity to surmount operational challenges and restore Tazara’s reliability as a transport mode in the region.

Furthermore, under this agreement, CCECC will undertake immediate rehabilitation efforts along with the supply of the necessary rolling stock. The operational costs incurred during the concession will be managed through agreement stipulations, ensuring that Tazara benefits from improved management and ultimately receives back the rehabilitated assets after the concession period concludes.

Ultimately, this initiative aims to significantly boost regional trade, lower transportation expenses, and enhance connectivity within the Dar es Salaam corridor. Projections indicate an increase in annual tonnage transported from the current average of 500,000 metric tonnes to an impressive two million metric tonnes, contributing to greater economic integration within the region.

In summary, the $1.4 billion investment from CCECC represents a transformative step for Tazara, positioning it to address operational challenges and enhance its capacity. With critical rehabilitation works planned and provisions for sustainable management in place, this initiative promises to significantly boost trade between Tanzania and Zambia and improve regional connectivity.

Original Source: www.thecitizen.co.tz