Tanzania’s central railway line gets $200 million World Bank financing

Dar es Salaam. The existing meter gauge railway segment from Dar es Salaam to Isaka in Tanzania is poised for significant improvements following the approval of $200 million in financing from the International Development Association (IDA) - a part of the World Bank Group.

The funding, allocated for the second phase of the Tanzania Intermodal and Rail Development Project (TIRP-2), aims to enhance safety, climate resilience, and operational efficiency along this crucial railway segment.

Read: Why lorry owners are losing business on the Central Corridor

Key components of the project include infrastructure strengthening, transport studies support, climate resilience enhancement for the Kilosa-Gulwe-Igandu section, operational and institutional support, and emergency response facilitation.

Approximately 900,000 individuals are expected to directly benefit from the project, with an additional 3.5 million people indirectly impacted, constituting roughly 5 percent of Tanzania's population.

This includes railway users, local residents, trade-related businesses, and communities within the Kinywasungwe catchment area.

World Bank Country Director, Nathan Belete, highlighted the persistent maintenance and capacity bottlenecks hindering Tanzania's extensive transportation network.

"While the country's transportation network is extensive, there are persistent bottlenecks in terms of maintenance and capacity that are limiting its full use," said the World Bank country director, Mr Nathan Belete.

"This investment will directly address the bottlenecks in the rail network to enhance efficiency, capacity, and competitiveness so as to maximize Tanzania's unique position to facilitate regional connectivity," he added.

Currently, Tanzania operates two railway systems, totaling 3,682 km in length. These comprise the meter gauge Tanzania railway (2,707 km) managed by the Tanzania Railway Corporation, and the Tanzania-Zambia railway line (975 km), alongside a cape gauge railway system under the Tanzania-Zambia Railway Authority (TAZARA).

A third system, featuring a standard gauge railway along the Central Corridor, is under construction in phased development.

Building upon the achievements of phase one, TIRP-2 continues the efforts initiated by the IDA-financed Tanzania Intermodal and Rail Development Project (TIRP-1), which concluded in September 2022.

TIRP-1 focused on improving the meter gauge railway section between Dar es Salaam and Isaka (970 km), including track and bridge rehabilitation, axle load capacity enhancement, and the revitalization of intermodal terminals at key locations.

World Bank senior transport specialist and task team leader, Mr Yonas Mchomvu, stressed the emphasis of the new project on climate-informed infrastructure and resilience measures, aiming to adapt the corridor to natural disasters while fostering private sector involvement to spur economic growth and efficiency.

The International Development Association (IDA), established in 1960, aims to support the world's poorest countries through grants and low to zero-interest loans, fostering economic growth, poverty reduction, and improvement in the lives of impoverished populations.

With a significant focus on Africa, IDA has been a key contributor to development initiatives, positively impacting billions of people across the globe since its inception.