Tazara says targeting to finalise concession agreement with China firm by year end
What you need to know:
- The concession will cover a period of up to 30 years, it stated, adding that operational capacity is expected to increase substantially during that period.
Dar es Salaam. Tanzania-Zambia Railway Authority (Tazara) said on Tuesday September 10, 2024 that it’s targeting to finalise the concession agreement by the end of the year, after signing an initial agreement for the rehabilitation of the decades-old railway.
The two African countries and China signed during the FOCAC meeting in Beijing, a memorandum of understanding for the concession of the railway.
The signing was witnessed by the Heads of State of China, Tanzania, and Zambia, marking a step towards the concessioning of the railway.
“It is poised to catalyze the much-needed revitalisation of our infrastructure and rolling stock, positioning Tazara to achieve its full potential,” the agency said in a statement.
Tazara is currently negotiating with the state-run China Civil Engineering and Construction Corporation (CCECC) which is also the original builder of the infrastructure for the concession.
“We aim to finalise the concession agreement by the end of the year,” the statement added.
Tazara anticipates that the rehabilitation of both infrastructure and rolling stock will take approximately two years.
The concession will cover a period of up to 30 years, it stated, adding that operational capacity is expected to increase substantially during that period.
The annual tonnage is projected to rise from the current combined average of 500,000 metric tonnes for all operators to approximately tw million metric tonnes.
“This marks an exciting new chapter for Tazara. We are enthusiastic about the railway’s transformation into a key driver of regional economic development, aligning with the aspirations of the people of both Tanzania and Zambia,” Tazara stated.
