Tazara secures $1.4 billion for Chinese company to operate railway for 30 years

Dar es Salaam. The Tanzania-Zambia Railway Authority (Tazara) is set to receive a $1.4 billion investment from the China Civil Engineering Construction Corporation (CCECC) to overhaul its operations.

The announcement was made by Tazara managing director and chief executive officer, Mr Bruno Ching’andu, during the Zambia International Mining and Energy Conference (ZIMEC 2025) in Kitwe, Zambia, according to a statement issued yesterday. 

Also read: $1 billion Tazara rehabilitation closer to reality

Tazara is currently negotiating with the state-run CCECC which is also the original builder of the infrastructure for the concession.

The two African countries and China signed during the Forum on China–Africa Cooperation (FOCAC) meeting in Beijing last year, 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.

Addressing investors and industry experts yesterday, Mr Ching’andu described the investment as a crucial step towards transforming Tazara into a more efficient and reliable transport corridor.

He said that although negotiations were ongoing, the investment would be implemented under a 30-year concession agreement. “This concession will mark the beginning of a new era for Tazara,” said Mr Ching’andu.

“The investment from CCECC will position Tazara as a key enabler of trade and economic growth between Tanzania and Zambia. Through this strategic partnership, we are ensuring that Tazara remains a competitive and sustainable transport solution for the region,” he added.

Mr Ching’andu emphasised that the partnership would help to address Tazara’s operational challenges and restore its efficiency.

Under the proposed agreement, CCECC will invest $1.0 billion in fully rehabilitating Tazara’s railway tracks to enhance safety, efficiency, and capacity.

A further $400 million will be allocated for the procurement of 32 new locomotives and 762 wagons to expand freight and passenger transport capacity.

Also read: Private firm set to launch cargo operations on Tazara

Regular overhauls and maintenance will also be conducted throughout the concession period to ensure sustainable operations, Tazara stated.

The 30-year concession will be structured to focus on construction and rehabilitation in the first three years, followed by full operational management for the remaining 27 years to ensure long-term sustainability.

Mr Ching’andu said the decision to grant the concession followed a comprehensive evaluation of Tazara’s long-standing challenges. The Public-Private Partnership (PPP) model was selected to align with Tazara’s long-term vision and shareholder interests.

As the concessionaire, CCECC will be responsible for the immediate rehabilitation of the railway and the supply of rolling stock.

It will also cover operational costs through concession fees payable to Tazara while ensuring the efficient operation and maintenance of the railway system. At the end of the concession period, the fully rehabilitated assets will be returned to Tazara.

The initiative is expected to enhance regional trade, reduce transportation costs, and improve connectivity along the Dar es Salaam corridor.

The annual tonnage is projected to rise from the current combined average of 500,000 metric tonnes for all operators to approximately two million metric tonnes.

The 1,860-kilometre Tazara was built from 1970 to 1975, financed by China. It links Zambia’s Kapiri Mposhi area with Dar es Salaam Port.

The railway line sought to eliminate landlocked Zambia's economic dependence on Rhodesia (now Zimbabwe) and South Africa, both of which were ruled by white-minority governments.

The railway provided the only route for bulk trade from Zambia's Copperbelt to reach the sea without having to transit white-ruled territories.