Tazara to Secure $1.4 Billion for Operational Revitalization

Tazara is set to receive a $1.4 billion investment from CCECC for railway operations overhaul, including $1 billion for track rehabilitation and $400 million for new locomotives and wagons. The initiative aims to improve transport capacity, safety, and efficiency under a 30-year concession agreement, enhancing trade between Tanzania and Zambia.

The Tanzania-Zambia Railway Authority, known as Tazara, is poised to receive a substantial investment of $1.4 billion from the China Civil Engineering Construction Corporation (CCECC). This initiative aims to rehabilitate railway operations, ensuring enhanced safety, efficiency, and capacity. The investment comprises $1 billion designated for track rehabilitation and $400 million allocated for the procurement of 32 locomotives and 762 wagons, which will significantly improve freight and passenger transport services.

Mr. Bruno Ching’andu, Tazara’s managing director and chief executive officer, announced this major investment during the Zambia International Mining and Energy Conference (ZIMEC 2025) held in Kitwe, Zambia. He explained that Tazara is currently finalizing negotiations with CCECC, the original builder of the railway infrastructure. Notably, a memorandum of understanding was signed during the Forum on China–Africa Cooperation (FOCAC) in Beijing last year, with officials from Tanzania, Zambia, and China present.

Mr. Ching’andu underscored the significance of this investment in transforming Tazara into a more reliable transport corridor. The deal will be executed under a 30-year concession agreement aimed at fostering a new era for Tazara. He remarked, “The investment from CCECC will position Tazara as a key enabler of trade and economic growth between Tanzania and Zambia.”

This strategic partnership seeks to resolve existing operational challenges faced by Tazara and restore its effectiveness as a transport solution. Over the span of the concession, CCECC will rehabilitate the railway tracks intensively in the first three years, followed by effective operational management for the remaining 27 years. This plan reflects a Public-Private Partnership (PPP) model chosen to align with the long-term vision of Tazara.

As the designated concessionaire, CCECC will oversee the immediate rehabilitation efforts and will be responsible for both operational costs and maintenance throughout the concession period. The initiative is expected to bolster regional trade, reduce transportation expenses, and enhance connectivity along the Dar es Salaam corridor. Tazara anticipates an increase in annual tonnage from the current average of 500,000 metric tonnes to approximately two million metric tonnes. Historically, Tazara was constructed between 1970 and 1975 to provide Zambia with crucial access to the sea without traversing politically unstable regions, thus playing a vital role in the country’s trade dynamics.

In summary, the $1.4 billion investment from CCECC is pivotal for Tazara, aiming to significantly augment railway safety and operational efficiency. The structured 30-year concession is designed to enhance regional connectivity and trade between Tanzania and Zambia while addressing long-term operational challenges. This partnership symbolizes a notable investment towards the sustainable development of Tazara as a key transport corridor in the region.

Original Source: www.thecitizen.co.tz