TAZARA Secures $1.4B Deal to Upgrade Railway Network

TAZARA Secures $1.4 Billion Investment for Major Overhaul

KITWE, ZANZIBAR: The Tanzania-Zambia Railway Authority (TAZARA) is set for a significant transformation following a landmark $1.4 billion investment aimed at revamping its infrastructure and operations.

The ambitious project, spearheaded by China Civil Engineering Construction Corporation (CCECC), was unveiled on Thursday by TAZARA Managing Director and CEO, Eng. Bruno Ching’andu, during the Zambia International Mining and Energy Conference (ZIMEC) in Kitwe.

A Game-Changer for Regional Transport

Addressing a gathering of investors and industry stakeholders, Ching’andu emphasized that the investment would revitalize TAZARA’s railway system, enhancing both efficiency and capacity. The project will be executed under a 30-year concession, with final negotiations currently underway.

The breakdown of the investment includes:

• $1 billion allocated for the complete rehabilitation of railway tracks.
• $400 million dedicated to procuring 32 new locomotives and 762 wagons to modernize operations.

Ching’andu highlighted that these upgrades would significantly improve safety, boost freight and passenger transport capacity, and solidify TAZARA’s role as a vital trade corridor between Tanzania and Zambia.

Long-Term Commitment to Modernization

The revitalization plan is set to commence within three years, after which CCECC will oversee operational management for the remaining 27 years of the concession. This initiative is designed to address longstanding performance issues, ensuring the railway remains a sustainable and competitive transport solution in the region.

“We are confident that this investment will place TAZARA on a new trajectory of efficiency and reliability,” Ching’andu stated.

Beyond infrastructure upgrades, the project will incorporate ongoing maintenance and modernization efforts over the 30-year period to guarantee long-term sustainability. Officials anticipate that the investment will enhance trade between Tanzania and Zambia, optimize logistics for the mining sector, and lower transportation costs for businesses and passengers alike.

With the finalization of the agreement approaching, TAZARA and CCECC are working closely to facilitate a seamless transition as the modernization efforts begin.