Chinese Investment Proposal For TAZARA Line Could Be The Game Changer!
Following the successful visit of the Chinese head of state on 3 September 2023, various discussions took place to strengthen cooperation in infrastructure within Zambia. These included dialogues on investment in road construction, airstrips, revitalisation of Tanzania, and direct flight agreements. Specifically, discussions focused on the historic Tanzania-Zambia Railway Authority (TAZARA)railway.
Notably, the focus was significantly placed on the historic TAZARA railway. It is important to recall that in December 2023, following the appointment of China Civil and Engineering and Construction Corporation (CCECC) as the negotiator for the prospective engagement of a Chinese operator in the revitalisation of TAZARA – CCECC formed and dispatched a Task Force to conduct a comprehensive business and technical inspection of TAZARA. In a media release issued by TAZARA, it was noted that April 2024, had been set as the target date for the completion of the TAZARA Revitalisation discussions.
On 7 February, Ambassador Du Xiaohui, accompanied by Chinese investors from CCECC, met with Frank Tayali, the Minister of Transport and Logistics of Zambia, to present a proposal for the revitalisation of the TAZARA line.
The Chinese investors are looking to invest over one billion U.S. dollars in the coming years under a PPP model. The Honourable Frank Tayali thanked the team for demonstrating China’s commitment to continuing as an “all-weather” friend to Zambia, highlighting the government’s urgency to deliver for its people. “We have to deliver in many areas. We need to reform and realign the way we do business as a country,” he said at the press briefing.
Where to from here? Zambia now needs to review the submitted proposal, taking into account any legal, political, or other obstacles that may arise. The needs of TAZARA from both a track perspective and rolling stock requirements must be addressed to achieve the expected volumes that will return TAZARA to an economically viable operation in the not-too-distant future.
The Minister noted that achieving a basic starting point of 1 million metric tons would require dispatching two freight trains daily from Dar es Salaam and Kapiri Mposhi in Zambia.
He also mentioned copper exports from Zambia, “We are exporting on average, slightly north of 420,000 metric tons of copper… We ought to consolidate this particular cargo…and we can also use some of the output from the DRC to move on this particular line to ensure the viability of the TAZARA Corridor.”