China to Modernize TAZARA Railway with $1.4 Billion Investment

China Civil Engineering Construction Corp is investing $1.4 billion to upgrade the TAZARA railway connecting Zambia’s copper mines to Tanzania’s port. The project includes rail track rehabilitation and new locomotives and wagons, aiming to improve trade and logistics while cutting costs. Officials anticipate the upgrade will significantly benefit the mining sector and strengthen trade relations between the two countries.

The China Civil Engineering Construction Corp (CCECC) is set to invest over $1.4 billion in modernizing the Tanzania-Zambia Railway Authority (TAZARA) line, which connects copper mines in Zambia to the largest port in Tanzania. This initiative aims to rehabilitate rail tracks, procure new locomotives, and enhance wagons, tackling the longstanding challenges faced by TAZARA.

This significant investment is expected to bolster trade between the two nations, improve logistical frameworks for the mining industry, and reduce transportation expenses. TAZARA serves as a vital export route for copper from Central Africa, providing an alternative to overburdened logistics networks in South Africa that delay copper and cobalt shipments.

Currently, negotiations are underway for a 30-year concession as indicated by Bruno Ching’andu, managing director of TAZARA. The evaluation of TAZARA’s operational difficulties has underscored the need for decisive action to facilitate enhancements. Additionally, the investment includes $1 billion for comprehensive rehabilitation of the railway tracks and $400 million dedicated to the acquisition of 32 new locomotives and 762 wagons.

The partnership between the governments of Tanzania and Zambia, alongside state-owned CCECC, aims to restore the railway that has suffered significant degradation over the years. This upgrade is the first major improvement since the railway’s original construction funded by China in the 1970s, and follows the 2023 memorandum of understanding signed by the involved countries regarding the railway’s rehabilitation.

Simultaneously, this development occurs as the United States advances a competing transport corridor for minerals centered around an Angolan port, known as the Lobito corridor. Officials from TAZARA have expressed optimism that this investment will enhance trade operations while cutting costs for both freight and passenger transportation.

In summary, CCECC’s investment of over $1.4 billion represents a transformative effort to modernize the TAZARA railway, which plays a pivotal role in facilitating trade between Zambia and Tanzania. The planned upgrades are designed to enhance logistical efficiencies and reduce transportation costs, significantly benefitting the mining sector in both nations. This initiative underscores the continuing significance of international partnerships in developing vital infrastructure, especially in the context of competing geopolitical interests in the region.

Original Source: africa.businessinsider.com