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China has agreed to invest about USD 1.4 billion to modernise the TAZARA railway in partnership with Zambia and Tanzania. The decision was finalised during China's Premier Li Qiang's recent visit to Zambia. The upgrade will cover the 1,860 km line, including tracks, bridges, tunnels, stations, and signalling systems. Freight capacity is expected to rise from roughly 100,000 tonnes a year to 2.4 million tonnes. The project is linked to a 30-year concession with CCECC and includes new locomotives, wagons, staff training, and long-term operational support.
China, Zambia, and Tanzania have taken forward their plan to upgrade the Tanzania-Zambia Railway Authority (TAZARA) network through an agreement valued at around USD 1.4 billion. The understanding was reached during the recent visit of China's Premier Li Qiang to Zambia, marking nearly three decades since a Chinese head of government last visited the country. The three nations have described the upgrade as essential for improving regional transport capacity and strengthening trade links. Advertisement
TAZARA, originally completed in the 1970s with financing and construction support from China, stretches close to 1,860 km from Kapiri Mposhi in Zambia to the port of Dar es Salaam in Tanzania. The railway was built to give Zambia an alternative export route during a period when the country wanted to reduce dependence on routes controlled by apartheid-era South Africa. Over the years, the line has faced deterioration due to ageing infrastructure, inconsistent funding, and increased competition from road transport.
Under the latest agreement, China Civil Engineering Construction Corporation (CCECC) will lead the rehabilitation activities. The work will cover the renewal of tracks, tunnels, bridges, communication systems, and passenger and freight stations. The plan also includes modernising maintenance facilities and improving overall safety standards along the corridor. According to the authorities, freight capacity is expected to grow significantly-from the current level of about 100,000 tonnes annually to nearly 2.4 million tonnes once the upgrade is completed.
This project aligns with the 30-year concession already signed with CCECC earlier this year. The initial three years of the concession will focus on construction, rehabilitation, and procurement of new rolling stock. The remaining 27 years will involve full operational and management responsibilities by the company. As part of the rollout, TAZARA is set to receive 32 locomotives and 762 wagons to support both freight and passenger movement.
Officials from the three countries have noted that the modernisation will also support technology transfer and skill development for local railway staff. Training programmes, improved workshops, and upgraded maintenance practices form part of the cooperation plan. The governments have also highlighted the possibility of new industrial and trade zones along the railway once capacity improves, allowing businesses to move goods more efficiently toward export markets.
For Zambia, the agreement comes at a time when the country continues to work through its financial recovery. China remains one of its largest creditors, with exposure estimated at about USD 5.7 billion. Zambian leaders have publicly acknowledged China's support in the country's debt restructuring discussions. Tanzania, on its part, has been aiming to enhance its port and transport connectivity to support growing regional trade.
Chinese officials have linked the TAZARA upgrade to broader cooperation under the Belt and Road framework. The project is viewed as a long-term investment in transport infrastructure that can support mineral exports, general cargo, and regional mobility. Both Tanzania and Zambia believe the collaboration will improve economic prospects, reduce transport delays, and generate employment during construction and subsequent operations.
Source Reuters
5th Jun, 2025
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