TAZARA allocated funding as concession agreement awaited
TANZANIA: Minister of Transport Makame Mbarawa has announced a total allocation of TSh27·3bn from the 2025-26 national budget for Tanzania-Zambia Railway Authority.
This includes TSh14·98bn for salaries and TSh12·32bn for critical infrastructure rehabilitation and upgrading, including the construction of two additional tracks at Tunduma station and the procurement of 30 passenger coaches, one shunting locomotive and spare parts.
Work is ongoing to finalise a 30-year concession agreement which would see China Civil Engineering Construction Corp operate the Tanzania-Zambia Railway network and revitalise the infrastructure and rolling stock.
On May 16 TAZARA said that once the concession agreement has been finalised, it expects the rehabilitation works and rolling stock procurement to take up to three years before the concessionaire is in a position to commence operations and start generating revenue for the authority.
The minister emphasised the importance of sustaining current operations and maintaining employee welfare during this transitional period.
Meanwhile, Zambia Railways Ltd Managing Director Cuthbert Malindi met with the CEOs of TAZARA, Malawi Cargo Centre Ltd and Zambia Cargo & Logistics in early May to explore opportunities for enhanced co-operation to modernise infrastructure and improve efficiency to attract customers to the railway from Dar es Salaam.
‘Our goal is to create a seamless and efficient railway network that supports regional trade, reduces transport costs and delivers real value to our economies’, said Malindi. ‘This visit was not just about familiarisation — it was about forging stronger partnerships for shared success.’
TAZARA CEO Bruno Ching’andu said ‘collaboration among our institutions is key to unlocking the full potential of the regional rail network. By aligning our efforts, we can offer customers a more reliable and integrated service.’
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