Tanzania has awarded a $2.2 billion contract to a Chinese company to build the last section of the Standard Gauge Railway (SGR) that will connect the country’s main port to neighboring countries. The new railway line will help reduce the cost of transporting goods. It is reported by Railway Supply magazine with reference to Railway Technology.


The 2,561 km railway line, with branches to Burundi, the Democratic Republic of the Congo (DRC), Rwanda and Uganda, will connect the Indian Ocean port of Dar es Salaam to Mwanza on Lake Victoria. The new railway is intended to replace the old inefficient 1000 mm gauge railway system. Freight trains will be able to move along the SGR at a speed of 120 km/h, and passenger trains – 160 km/h.

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Tanzanian President Samia Suluhu Hassan said construction of the last section of the SGR from Tabora to Kigoma in western Tanzania will be completed in 2026, nine years after it began. With the completion of the SGR, Tanzania will be able to better use its strategic geographic location to facilitate cross-border trade.

Tanzania’s investment in SGR has now reached over $10 billion, including the current contract, she said.

Once the new rail line is fully operational, the cost of transporting goods between the port of Dar es Salaam and the DRC is expected to drop from a minimum of US$6,000 per tonne to around US$4,000.

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