China, Zambia, and Tanzania have officially signed a $1.4 billion deal on Monday to upgrade and revitalize the historic Tanzania-Zambia Railway (TAZARA). The agreement, a significant development for regional trade and infrastructure, grants a 30-year concession to the state-owned China Civil Engineering Construction Corporation (CCECC) to modernize the critical rail link.
The TAZARA railway, originally built by China in the 1970s, has long served as a vital artery for shipping copper and other mineral exports from landlocked Zambia to the Tanzanian port of Dar es Salaam. The railway, however, has faced significant operational and financial challenges over the decades, leading to a decline in its capacity.
Under the new concession agreement, CCECC will invest over $1.4 billion to address these issues. The investment package includes approximately $1 billion for the comprehensive rehabilitation of the railway tracks and an additional $400 million for the procurement of 32 new locomotives and 762 wagons.
TAZARA officials project that the upgrade will substantially increase the railway’s annual freight capacity, which is expected to rise from the current average of 500,000 metric tons to an estimated 2 million metric tons.
This revitalization effort is seen as a strategic move to ease logistics bottlenecks that have historically plagued mineral exports from the region, particularly those that rely on transit through South Africa.
TAZARA upgrade is also taking place amid growing geopolitical competition, as the United States has been supporting a rival transport corridor, the Lobito Corridor, which links the copper belt to an Angolan port. The new deal underscores China’s continued interest in and commitment to infrastructure development in Africa.
The concession is structured with a three-year phase for construction and rehabilitation, after which CCECC will assume full operational management for the remaining 27 years. The project aims not only to improve trade and logistics for the mining sector but also to reduce transportation costs for both businesses and passengers, strengthening economic ties between the two countries.####
