The Tanzania-Zambia Railway Authority (Tazara) has signed a significant Public-Private Partnership (PPP) agreement with the China Civil Engineering Construction Corporation (CCECC) to invest $1.4 billion in upgrading the railway infrastructure.
This initiative aims to enhance the operational efficiency of the railway that connects Tanzania and Zambia, facilitating economic growth in the region.
Key Takeaways
- Tazara has entered a 30-year PPP agreement with CCECC.
- The investment will focus on infrastructure rehabilitation and procurement of new locomotives and wagons.
- The project aims to improve trade and transport capacity between Tanzania and Zambia.
Overview of the Tazara Railway
The Tazara railway, spanning 1,160 kilometers, links the port of Dar es Salaam in Tanzania to Kapiri-Mposhi in Zambia. Originally built in the 1970s, the railway has faced numerous challenges over the years, including outdated infrastructure and declining operational efficiency.
The current 1,067 mm gauge line has been deemed insufficient for modern transport needs, prompting the need for a comprehensive upgrade.
Details of the PPP Agreement
Under the terms of the agreement, CCECC will invest over $1.4 billion in the following areas:
- Infrastructure Rehabilitation:
- Procurement of New Equipment:
- Maintenance and Overhauls:
Timeline and Structure of the Project
The 30-year concession will be structured as follows:
- First Three Years: Dedicated to track rehabilitation and construction.
- Remaining 27 Years: Focused on the operation of the line, ensuring that Tazara remains a competitive transport solution.
Economic Impact
The revitalization of the Tazara railway is expected to have a profound impact on trade and economic growth in both Tanzania and Zambia. By improving the efficiency of the railway, the project aims to facilitate smoother transport of goods, particularly from Zambia’s copper belt to the port of Dar es Salaam, which is crucial for export activities.
Bruno Ching’andu, the managing director and CEO of Tazara, emphasized the importance of this partnership, stating, “This concession will mark the beginning of a new era for Tazara.
The investment from CCECC will not only restore railway infrastructure but also position Tazara as a key enabler of trade and economic growth between Tanzania and Zambia.”
Conclusion
The $1.4 billion PPP agreement between Tazara and CCECC represents a significant step towards modernizing the railway infrastructure in East Africa.
As the project unfolds, it is anticipated to enhance connectivity, boost trade, and ultimately contribute to the economic development of both nations.
