China Civil Engineering Corporation (CCECC) has launched a major investment of $1,4 billion to modernize the TANZAM railway, which connects Zambia’s copper mines to Tanzania’s Dar-es-Salam port. The project aims to increase the capacity of the railway, which has been in need of maintenance for years, and to strengthen regional connections.
Details of TANZAM Railway Modernization
The project involves the complete reconstruction of the old TANZAM infrastructure, built by CCECC with Chinese assistance in the 1970s. The company is allocating $1 billion to the modernization process, as well as committing $32 million to purchase 762 locomotives and 400 freight cars. The construction and restoration phase will begin immediately after approval and will last three years. Once completed, CCECC will manage the railway’s operations for 27 years, ensuring its sustainability.
The Tanzania-Zambia Railway Authority (TAZARA) says CCECC plans to begin track restoration and equipment delivery without delay. CCECC will cover operational costs through concession fees paid to TAZARA.
Will Contribute to Copper Exports
The TANZAM railway is a major part of Zambia’s copper exports. With copper accounting for 74% of Zambia’s exports, modernising the railway is critical to the country’s economic growth. With railway infrastructure aging and losing capacity since the early 1990s, this investment will help increase trade between Zambia and Tanzania and strengthen inter-regional connections.
China's Role in Africa Is Increasing
The project is an example of Chinese state-owned companies rapidly increasing their investment in railway systems in Africa. In January, CCECC provided a loan for Nigeria’s Kaduna-Kano line, while in February, China Railway Engineering Group signed an agreement between Tanzania and Burundi, connecting Burundi’s nickel deposits to Tanzania’s rail network.
The modernization of the TANZAM railway is a key part of China’s infrastructure development strategy in Africa. The project will not only facilitate trade between Zambia and Tanzania, but will also help attract more investment by accelerating economic growth in the region.
Economic Benefit and Future Perspective
Upon completion, the upgraded railway is expected to increase efficiency and reduce transportation costs. This will provide a major economic opportunity for businesses in Zambia and Tanzania. The modernization of the TANZAM railway will be a driver of trade and economic growth in the region, reinforcing the future importance of China’s infrastructure investment in Africa.
Ultimately, CCECC’s investment will not only renew a historic railway, but also strengthen economic ties between Zambia and Tanzania. The completion of the project will strengthen regional transport networks and provide a successful example of China’s infrastructure strategy in Africa.
