TANZAM Railway Modernization Gets $1.4 Billion Boost from CCECC

China’s CCECC Invests $1.4 Billion to Upgrade TANZAM Railway. This is reported by the railway transport news portal Railway Supply.

China Civil Engineering Corporation launches TANZAM railway modernization with a $1.4 billion investment. This project links Zambia’s copper mines to Tanzania’s Dar-es-Salam port efficiently.

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Bruno Chingandu, head of Tanzania-Zambia Railway Authority, presents a 30-year concession deal proposal. However, negotiations between the involved parties continue to shape the project’s final terms.

TANZAM Railway Modernization: A $1 Billion Reconstruction Plan

CCECC plans to allocate $1 billion to fully reconstruct the aging TANZAM infrastructure. Additionally, the company commits $400 million to purchase 32 locomotives and 762 freight wagons.

The construction and restoration phase will span three years, starting immediately after approval. Then, CCECC will manage operations for 27 years, ensuring the railway’s long-term sustainability.

TAZARA confirms that CCECC aims to begin track restoration and equipment delivery without delay. Moreover, the company will cover operational costs using concession fees paid to TAZARA.

TANZAM Railway Modernization Boosts Copper Exports

The TANZAM railway, built in the 1970s with China’s assistance, supports Zambia’s copper exports. Because copper accounts for 74% of Zambia’s exports, this upgrade promises significant economic benefits.

Since the 1990s, declining infrastructure and outdated rolling stock have reduced TANZAM’s capacity. Thus, this investment addresses critical needs and boosts regional connectivity between Zambia and Tanzania.

Chinese state firms actively invest in Africa’s railway systems, expanding their influence rapidly. For example, CCECC secures a loan in January to build Nigeria’s Kaduna-Kano line successfully.

In February, China Railway Engineering Group signs a deal with Tanzania and Burundi. Consequently, this agreement links Burundi’s nickel deposits to Tanzania’s rail network and port.

This $1.4 billion project underscores China’s growing role in Africa’s infrastructure development initiatives. And it strengthens trade routes, benefiting both Zambia’s economy and regional transport networks.

CCECC’s immediate action plan includes supplying new rolling stock and maintaining the railway effectively. Therefore, this effort ensures TANZAM remains a reliable artery for copper exports.

Once completed, the revamped railway will enhance efficiency and reduce transportation costs significantly. So, businesses in Zambia and Tanzania eagerly anticipate the economic uplift this brings.

The TANZAM upgrade aligns with China’s broader strategy to bolster Africa’s transport infrastructure. Furthermore, it reinforces partnerships that drive economic growth across the continent steadily.

Negotiations continue to finalize details, but CCECC’s commitment signals a transformative step forward. Ultimately, this investment revitalizes a historic railway and secures its future relevance.

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