The concession agreement for revitalizing the Tanzania-Zambia Railway (TAZARA) is reportedly close, with Chinese state firm China Civil Engineering and Construction Corporation (CCECC) poised to take over its operations following the signing of a Memorandum of Understanding in September 2024.
“As I speak today, our team of experts from Tanzania and Zambia is in Dar es Salaam to discuss the concession agreement,” Tanzania’s Minister of Transport, Makame Mbarawa, informed parliament on November 7, 2024.
He added, “We believe that by next week, the teams from Tanzania and Zambia will meet with the Chinese team to finalize the concession discussion.”
Built-in 1976, the 1,860-kilometer railway has substantial historical significance as a symbol of China’s early foreign policy and relations with African countries. However, its commercial viability has decreased over time, leading to operational decline.
CCECC, which originally constructed TAZARA, is set to receive a 30-year concession. With new investments, TAZARA estimates that rail efficiency will increase, boosting annual cargo capacity from 500,000 metric tons to 2 million metric tons.
TAZARA is expected to play a critical role for China by facilitating the transport of essential minerals from the Democratic Republic of Congo and Zambia to the Indian Ocean.
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One day we wont be surprised to see our State House also being privatized !