CCECC to invest $1.4bn to revitalise Tanzania-Zambia Railway Authority

Yahoo

21-03-2025

The Tanzania-Zambia Railway Authority (TAZARA) is set to receive an investment of more than $1.4bn from the China Civil Engineering Construction Corporation (CCECC) for the revitalisation of its railway infrastructure and operations.
This announcement was made by TAZARA Managing Director and CEO Eng. Bruno Ching'andu at the Zambia International Mining and Energy Conference (ZIMEC 2025) in Kitwe, Zambia.
The funding will be used for comprehensive rehabilitation and procurement of new rolling stock under a 30-year concession arrangement.
The investment aims to transform TAZARA into an 'efficient and reliable' transport corridor.
The proposed agreement with CCECC includes a $1bn allocation for the full rehabilitation of TAZARA's railway track infrastructure to enhance safety, efficiency, and capacity.
An additional $0.4bn will be invested in the procurement of 32 new locomotives and 762 new wagons, which will significantly increase freight and passenger transport capacity.
Ching'andu said: 'This concession will mark the beginning of a new era for TAZARA. The investment from CCECC will not only restore our railway infrastructure but also position TAZARA as a key enabler of trade and economic growth between Tanzania and Zambia.
'Through this strategic partnership, we are ensuring that TAZARA remains a competitive and sustainable transport solution for the region.'
The concession structure outlines a three-year construction and rehabilitation phase followed by 27 years of full operational management.
The Public-Private Partnership (PPP) model was selected to align with TAZARA's long-term vision and the interests of its shareholders.
As the concessionaire, CCECC's responsibilities will include immediate rehabilitation of the railway track, supplying rolling stock, covering operational costs through concession fees payable to TAZARA, and efficiently maintaining and operating the railway system.
At the end of the concession period, CCECC will hand back fully rehabilitated assets.
The investment is the latest in a long line of Chinese-backed infrastructure projects across Africa, many of which are part of the Belt and Road project.
In January this year, Tanzania and Burundi signed a $2.15bn agreement with two Chinese firms to build a railway for transporting metals, including nickel, to Dar es Salaam.
The project will be developed by China Railway Engineering Group and China Railway Engineering Design and Consulting Group, with funding from the African Development Bank (AfDB).
"CCECC to invest $1.4bn to revitalise Tanzania-Zambia Railway Authority" was originally created and published by Railway Technology, a GlobalData owned brand.
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