Tanzania has signed a $2.2 billion deal with Chinese firms to build a railway linking Dar es Salaam to a nickel mine in Burundi. This project, which aims to enhance nickel exports and trade between both nations, will help transport three million metric tonnes of ore annually. Financing will be provided by the African Development Bank, marking an important step in regional infrastructure development.
Tanzania has formalized a $2.2 billion agreement with two Chinese firms to construct a standard gauge railway connecting Dar es Salaam, Tanzania’s major port, to a nickel mine in Burundi. The selected contractors for this ambitious project are China Railway Engineering Group and China Railway Engineering Design and Consulting Group, as announced by Tanzania Railways.
The Tanzanian Minister of Transport, Makame Mbarawa, indicated that the initiative stems from a bilateral agreement between the Tanzanian and Burundian governments. This new rail link, stretching 282 kilometers, aims to enhance the efficiency of nickel exports while fostering cross-border trade between the two nations.
The railway will extend from Uvinza, a Tanzanian town adjacent to the Burundian border, to Musongati, which is situated near a substantial nickel deposit as well as other precious minerals, including gold and copper. Nickel prices have seen significant fluctuations but have recently surged, climbing from under $10,000 per tonne in 2016 to nearly $20,000 today.
Once operational, the railway is projected to transport approximately three million metric tonnes of ore annually. This infrastructure project is expected to be funded through a concessional loan from the African Development Bank, which is marking its inaugural venture into financing railway projects within Tanzania.
Tanzania’s Finance Minister, Mwigulu Nchemba, expressed the significance of this development, stating that it marks a pivotal moment for the country’s railway ambitions. The government’s collaboration with Chinese contractors underscores a strategic partnership aimed at enhancing regional transportation and trade efficiency.
The article discusses the recent agreement between Tanzania and Chinese construction firms aimed at bolstering railway infrastructure in East Africa. The international collaboration is pivotal for improving trade logistics and mineral exports, particularly nickel, which plays a vital role in various industries. The financing by the African Development Bank also indicates growing support for infrastructure development in the region and highlights the increasing interest in African resource markets. The railway project is not only focused on economic growth through export efficiencies but also on enhancing regional integration by facilitating better trade routes between Tanzania and Burundi, a country rich in natural resources.
In conclusion, the $2.2 billion railway project between Tanzania and Chinese contractors represents a significant milestone in enhancing infrastructure and boosting trade in East Africa. The endeavor aims to improve the transportation of nickel and other minerals while fostering cross-border economic collaboration. The involvement of the African Development Bank highlights an investment in the region’s infrastructure and resources, signaling a broader commitment to sustainable economic development.
Original Source: www.globalconstructionreview.com
