Chinese Concessionaire to Run Tazara Railway in 2024
By Chamwe Chowa Kaira
In a significant development for the Tanzania Zambia Railway Authority (Tazara), it has been revealed that a Chinese concessionaire is poised to take control of the railway as early as the first quarter of 2024. The announcement came from Frank Tayali, the Zambian Minister of Transport and Logistics, who accompanied President Hakainde Hichilema on a recent six-day diplomatic visit to China.
Negotiations for this transformative partnership are expected to conclude before the first quarter of 2024, with the aim of enabling the concessionaire to operate Tazara on a commercial basis. Tayali emphasized that the selected concessionaire would likely be a Chinese company, capable of infusing expertise, locomotives, and wagons into the railway’s operations.
During their visit to China, President Hichilema and his delegation held a pivotal meeting with Wang Jianping, the chairman of the China Railway Construction Company. Hichilema urged the Chinese company to consider an extensive overhaul of Tazara’s infrastructure in both Zambia and Tanzania. Wang Jianping highlighted his company’s extensive involvement in construction projects worth US$500 million in Zambia.
“We are seeking a comprehensive rehabilitation of Tazara. The revival of its infrastructure is imperative to facilitate the swifter movement of goods and people. We have already engaged with the government of Tanzania, and now we intend to engage with the government of China. The Zambian government is committed to seeing this project through,” Hichilema declared.
China and Zambia issued a joint communiqué, affirming their commitment to revamp and modernize the Tazara railway line, adhering to market and commercial principles. The railway line stretches from Kapiri Mposhi in Zambia to Dar-es-Salaam in Tanzania and has played a pivotal role in regional transportation.
Tazara, a multimillion-dollar railway project inaugurated in 1976, stands as the most significant single foreign-aid project ever undertaken by the Chinese government. President Hichilema, during his discussions with the Chinese Rail Corporation, traced the historical roots that led to the establishment of Tazara.
Hichilema urged the Chinese Rail Corporation to collaborate with Zambia and Tanzania in the mission to rehabilitate and enhance the integrity of the Tazara railway line, aligning with the growing trade and investment opportunities in the region. The revival of Tazara is poised to connect Zambia to vital markets, a crucial factor for economic growth.
As part of this tripartite endeavor between Zambia, Tanzania, and China, a team of experts has been dispatched to assess the Tazara railway line’s current state and requirements.
In recent financial results for 2021-22, Tazara reported a decline in revenue from US$31 million in the previous financial year to US$24.2 million, primarily due to the closure of the Chambeshi Bridge in Zambia and washouts in Tanzania. These challenges adversely affected annual freight performance, resulting in a 3.5% drop compared to the prior year. Additionally, the Covid-19 pandemic further hampered business operations.
For the 2022-23 financial year, Tazara anticipates carrying 450,000 tonnes of freight and serving 3.4 million passengers. Revenue projections are significantly improved, totaling US$51.3 million, comprising US$34.3 million from passenger and freight services and US$10.4 million from non-traffic revenue, including open-access operations.
Furthermore, the board has approved a proposal to gradually increase dollar-denominated base fares by 6% in the first quarter and an additional 6% in the second quarter of the 2022-23 financial year.
Tazara remains a critical transporter of mineral ores, refined copper, manganese, cobalt, and various other minerals from Zambia and the Democratic Republic of the Congo. It also handles imports such as fuels, hardware, coal, and timber for customers in Malawi, Zambia, Tanzania, the DRC, Rwanda, and Burundi, primarily through the Port of Mpulungu on Lake Tanganyika.
The impending partnership with a Chinese concessionaire marks a significant milestone in the revitalization of Tazara, with promising prospects for economic development in the region.
