Tanzania has secured financing for the construction of the Standard Gauge Railway linking Tanzania to Burundi. The TRC is overseeing a 2,561-kilometer railway line, with current operations between Dar es Salaam and Dodoma. Funding secured from Standard Chartered, Sinosure, and the AfDB will facilitate construction. The railway is expected to significantly increase revenue from freight transport, with expectations of revenues tripling as services commence.
The Tanzanian government has successfully secured funding for the construction of the Standard Gauge Railway (SGR) section linking Tanzania to Burundi. The Tanzania Railways Corporation (TRC) is managing the ambitious project, which encompasses a 2,561-kilometer rail line from the Indian Ocean port of Dar es Salaam to Mwanza, with future extensions anticipated into Burundi, the Democratic Republic of the Congo, Rwanda, and Uganda. While the segment between Dar es Salaam and Dodoma is currently operational, other segments are actively under construction. During a training session for the parliamentary Public Investment Committee (PIC), TRC Acting Director General Mateshi Tito announced the completion of negotiations with three international financial institutions for the portion of railway extending from Uvinza in Kigoma to Musongati in Burundi. This development will be facilitated by Standard Chartered, China Export and Credit Insurance Corporation (Sinosure), and the African Development Bank (AfDB). Mr. Tito indicated that contract signing would commence shortly to initiate construction on this segment. While the exact funding amount from the three institutions was not disclosed, Mr. Tito provided updates on the overall progress of various sections of the railway, with 14.53 percent completion noted for Makutupora-Tabora, 6.14 percent for Tabora-Isaka, 60.62 percent for Isaka-Mwanza, and 6.68 percent for Tabora-Kigoma. Additionally, discussions are ongoing regarding potential investments in locomotive procurement and the construction of the Mtwara-Mbamba Bay line. PIC Chairman Augustine Vuma Holle reported that the project has so far cost approximately $10 billion, emphasizing the optimistic expectations regarding revenue generation once freight services commence next February. Since initiating passenger services on the SGR, the TRC has collected over Tsh20 billion (equivalent to $7.5 million), underscoring the significance of freight transportation, which typically generates 80 percent of railway revenue compared to passenger services at 20 percent. Deputy Transport Minister David Kihenzile expressed contentment with the accolades received from the PIC, reaffirming the government’s commitment to the diligent implementation of this substantial investment in the SGR project.
The Standard Gauge Railway (SGR) project is an extensive initiative undertaken by the Tanzanian government seeking to enhance rail connectivity within the East African region. This ambitious project aims to link Tanzania’s main port, Dar es Salaam, to strategic points including Mwanza and further into neighboring countries such as Burundi, the Democratic Republic of the Congo, Rwanda, and Uganda. By utilizing modern rail technology, the SGR intends to boost trade efficiency and facilitate smoother transport of goods and services across borders, significantly enhancing regional economic integration. The successful financing of this project is critical, influencing future operational revenue streams, particularly from freight services.
In conclusion, the Tanzanian government’s efforts to secure funding for the construction of the SGR link to Burundi marks a significant milestone in East Africa’s railway modernization initiative. With substantial backing from international financial institutions, the project is poised to enhance trade connectivity and potentially revolutionize passenger and freight transport in the region. The TRC’s commitment to diligent project management and the anticipation of increased revenue from freight operations underscore the strategic importance of this infrastructure development for Tanzania and its neighbors.
Original Source: www.theeastafrican.co.ke
