China Invests $1.4 Billion in Tanzania-Zambia Railway Upgrade
China Civil Engineering Construction Corporation (CCECC) will invest $1.4 billion to upgrade the Tanzania-Zambia Railway (TAZARA), enhancing copper export routes from Central Africa. The investment will include rehabilitation of tracks and new equipment procurement. This initiative comes as competition grows with U.S. support for rival transport corridors. TAZARA’s CEO highlighted the urgency of such improvements following an evaluation of the railway’s historic challenges.
The China Civil Engineering Construction Corporation (CCECC) has announced a substantial investment of $1.4 billion aimed at upgrading the Tanzania-Zambia Railway (TAZARA). This enhancement is projected to significantly improve a critical transport route for copper exports from Central Africa, as indicated by TAZARA’s operator.
Known as TAZARA, this railway provides an essential alternative to South African logistics routes, which have experienced delays impacting the export of copper and cobalt, as reported by Reuters. Bruno Ching’andu, CEO of TAZARA Authority, emphasized the necessity for immediate intervention following a thorough assessment of the railway’s long-standing challenges.
Last year, China formalized an agreement to revitalize the 50-year-old TAZARA line at a time when the U.S. was supporting a competing mineral transport corridor originating from Angola. CCECC’s investment details reveal that approximately $1 billion will be allocated for rehabilitating existing railway tracks, while the remainder will be invested in acquiring 32 new locomotives and 762 new wagons to enhance capacity, as per Ching’andu’s statements.
Ching’andu announced the investment during the Zambia International Mining and Energy Conference, where he sought to engage with investors and other stakeholders. The concession spanning 30 years will involve three years of construction activities followed by 27 years dedicated to operational maintenance. He noted that discussions concerning the final terms of the agreement are still underway.
This funding marks a notable resurgence in China’s lending to Africa, which experienced a decline to a 20-year low in 2022 after reaching a peak of $28.4 billion in 2016, as stated by Reuters.
In summary, the investment by CCECC will play a vital role in enhancing the TAZARA railway, facilitating improved copper exports from Central Africa. This significant financial commitment indicates a renewed focus on African infrastructure projects by China, while also highlighting the strategic importance of TAZARA as an alternative to South African transport routes. The long-term concession and substantial allocations for rehabilitation and new equipment are expected to bolster the operational capacity of the railway.
Original Source: www.miningmx.com
Post Comment