China Wins Contract to Extend Rail in Tanzania

On 20 December 2022, China Civil Engineering Construction Corporation (CCECC) signed a contract with Tanzania Railways Corporation (TRC) to extend the railway network. The scope of the project involves adding another 2,561 km of Standard Gauge Rail (#SGR) tracks to link Tabora with Kigoma, near the border with Burundi. Works will cost USD 2.2 billion and will last until 2026.

The segment of the railway originates from the seaport of Dar es Salaam and is designed to link up landlocked neighbouring countries such as Burundi, Rwanda, Uganda and the Democratic Republic of Congo (DRC). Tanzanian President Mrs Samia Suluhu witnessed the signing and highlighted that the master plan is to develop Tanzania into a transport and logistics hub in East Africa.

According to the feasibility studies, the new railway line will bring down the cost of freight. Thus, one tonne of goods from the port of Dar es Salaam to the DRC which currently costs USD 6,000 will be reduced to USD 4,000. In addition, the travel time will be cut down from 30 days to just 30 hours.