China Civil Engineering Construction Corp (CCECC) will invest over $1.4 billion to modernize a historic railway line connecting Zambia’s copper mines to Tanzania’s largest port.
The railway, widely known as TAZARA, serves as a crucial route for copper exports from Central Africa and provides an alternative to bypass logistics bottlenecks in South Africa that have delayed copper and cobalt shipments.
Negotiations for a 30-year concession are still underway, according to Bruno Ching’andu, managing director of the Tanzania-Zambia Railway Authority (TAZARA), which operates the line.
“The decision to grant a concession follows an in-depth evaluation of TAZARA’s challenges over the years, which necessitated urgent intervention,” said Bruno Ching’andu, the CEO of TAZARA Authority, in a statement.
The governments of Tanzania and Zambia have partnered with state-owned CCECC to restore the railway, which has fallen into disrepair. The investment package includes 1 billion US dollars for the full rehabilitation of TAZARA’s rail tracks, as well as 400 million US dollars for the purchase of 32 new locomotives and 762 wagons.
Source: Businessinsider
