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China Invests $1.4 Billion to Modernize TAZARA Railway for Enhanced Trade

The China Civil Engineering Construction Corporation (CCECC) is investing $1.4 billion to upgrade the TAZARA railway, enhancing trade between Zambia and Tanzania. Planned improvements include rehabilitation of rail tracks and acquisition of new locomotives and wagons. The effort aims to alleviate logistical challenges and has received governmental support.

The China Civil Engineering Construction Corporation (CCECC) is set to invest over $1.4 billion to modernize the TAZARA railway line, a vital artery that links Zambia’s copper mines to Tanzania’s largest port. This substantial investment seeks to address existing challenges of the TAZARA system by rehabilitating rail tracks and acquiring new locomotives and wagons.

TAZARA plays a critical role in enabling copper exports from Central Africa and offers an alternative route to avoid logistical delays experienced in South Africa. Currently, negotiations for a 30-year concession are ongoing, as reported by Bruno Ching’andu, the managing director of the Tanzania-Zambia Railway Authority.

Bruno Ching’andu stated, “The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention.” Together with the governments of Tanzania and Zambia, CCECC aims to restore the railway, which has significantly deteriorated over time.

The investment will allocate $1 billion for complete rehabilitation of TAZARA’s railway tracks and an additional $400 million for 32 new locomotives and 762 wagons. TAZARA officials anticipate that this revitalization will enhance trade between the two nations, streamline logistics within the mining sector, and decrease transportation costs for both businesses and passengers.

This initiative comes amidst competition from a U.S.-backed transport corridor, known as Lobito, based around an Angolan port. In 2023, a memorandum of understanding was signed between China, Tanzania, and Zambia to restore the 1,860-kilometer railway, originally constructed with aid from China in the 1970s. This restoration signifies the most extensive upgrade since the railway’s inception.

The significant investment by CCECC to modernize the TAZARA railway is a critical step toward enhancing trade and logistics in the region. By rehabilitating the rail infrastructure and investing in new equipment, the collaboration between the governments of Tanzania and Zambia, along with CCECC, aims to address past operational challenges. This initiative not only facilitates copper exports but also reduces transportation costs, reflecting a substantial advancement in regional economic integration.

Original Source: africa.businessinsider.com

Anaya Williams

Anaya Williams is an award-winning journalist with a focus on civil rights and social equity. Holding degrees from Howard University, she has spent the last 10 years reporting on significant social movements and their implications. Anaya is lauded for her powerful narrative style, which combines personal stories with hard-hitting facts, allowing her to engage a diverse audience and promote important discussions.

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