China’s CCECC will invest $1.4 billion to upgrade the Tanzania-Zambia Railway, enhancing copper export routes and addressing logistics issues. The initiative includes $1 billion for rail rehabilitation and the acquisition of new locomotives and wagons, with a 30-year concession for construction and operation. This investment marks a resurgence in China’s financial engagement in Africa.
The China Civil Engineering Construction Corporation (CCECC) has announced a substantial investment of $1.4 billion to enhance the Tanzania-Zambia Railway (TAZARA), a pivotal transport route for copper exports from Central Africa. According to a report by Reuters, this upgrade will help alleviate logistic challenges in South Africa that have hampered the export of copper and cobalt.
Bruno Ching’andu, CEO of TAZARA Authority, indicated that the decision to initiate this investment followed a comprehensive assessment of the railway’s long-standing challenges, which necessitated immediate intervention. China had previously signed an agreement to revitalize the 50-year-old railway in the face of competing transport alternatives, particularly from the United States supporting a new transport corridor linked to the Lobito port in Angola.
Of the total investment, approximately $1 billion will be allocated to the rehabilitation of TAZARA’s rail tracks, while the remainder will be utilized for the acquisition of 32 new locomotives and 762 new wagons to enhance operational capacity. This announcement was made during the Zambia International Mining and Energy Conference, where Mr. Ching’andu presented to various investors and industry executives.
The concession established for CCECC will span 30 years, encompassing three years dedicated to construction activities and 27 years for operation and maintenance. Mr. Ching’andu further clarified that negotiations regarding the arrangement are still ongoing. This investment represents a notable resurgence in China’s financial involvement in Africa, which had reached a two-decade low of $28.4 billion in 2016, before declining significantly in 2022.
In summary, the $1.4 billion investment by CCECC signifies a critical development for the Tanzania-Zambia Railway, addressing significant logistical challenges for copper exportation from Central Africa. With substantial funds allocated for infrastructure rehabilitation and additional rolling stock, this project aims to improve operational efficiency and capacity. Furthermore, it underscores China’s continued commitment to investment in Africa amidst competing transport initiatives.
Original Source: www.miningmx.com
