The $1.4 billion TAZARA concession brings China, Tanzania, and Zambia together to upgrade freight workings, increase capacity, and restore one of Southern Africa’s most strategic railway corridors.

This is reported by the railway transport news portal Railway Supply.

TAZARA rail concession drives regional trade revival
Photo: www.tazarasite.com

TAZARA concession supports freight expansion and reform

China, Tanzania, and Zambia set up a Special Purpose Vehicle (SPV) by the China Civil Engineering Construction Corporation to run TAZARA freight services through revenue-sharing.

The arrangement enables both black nations to maintain passenger operations and enjoy a predetermined annual concession fee, with the purpose of ensuring national control and stable revenue inflow.

The proposed project aims at freight expansion to 2.4 million tonnes in the next two years and 5 million tonnes in five years.

By upgrading governance and logistics, the line intends to generate fresh employment, increase exports, and improve regional integration in East and Southern Africa.

TAZARA infrastructure renewal strengthens cross-border logistics

China is going to provide 34 locos with double the present hauling ability, 760 new wagons, and 16 tourist coaches. Rehab of the 1,860-mile route boosts reliability, while $1.17 billion invests in heavy capital upgrades and $238 million in maintenance and procurements.

A new logistical hub at Kapiri Mposhi in Zambia, the warehousing and customs service for the Democratic Republic of Congo and Zambia, will combine customs and warehousing services.

These facilities will assist in handling increased freight volumes through the Port of Dar es Salaam, currently in the throughput of 15 million tonnes a year as opposed to five million in the 1970s.

Decades of decline and underinvestment, the upgrading converts TAZARA into an efficient, profitable corridor. Chinese enterprises and regional shippers have made commitments to reroute freight through the refurbished corridor, in addition to other corridors like Lobito, Nacala, and Beira.

About TAZARA

Tanzania-Zambia Railway Authority (TAZARA) is a 1,860-kilometer railroad connecting the Tanzanian Port of Dar es Salaam to the central Tanzanian town of Kapiri Mposhi in Zambia. Constructed in the 1970s with Chinese assistance, it was intended to provide Zambia with a reliable export route to the Indian Ocean and help escape the clutches of politically unstable neighboring states.

TAZARA is still among the most significant cross-country rail corridors in Africa, carrying copper, fuels, and crops in Southern and East Africa. It’s central in regional trade integration, industrialization, as well as economic regional development, for both Tanzania and Zambia.

Source: www.railwaysafrica.com

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What is TAZARA and why is it important?

TAZARA, the Tanzania-Zambia Railway Authority, connects landlocked Zambia to the Port of Dar es Salaam, making it vital for Southern Africa’s trade and export logistics.

How will the TAZARA concession benefit Zambia and Tanzania?

Both countries gain from expanded freight capacity, fixed concession revenues, and upgraded infrastructure that increases economic competitiveness and job creation.

When will TAZARA’s modernization be completed?

Initial freight expansion targets 2.4 million tonnes within two years, while full capacity of 5 million tonnes is expected within five years of project implementation.

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