China Civil Engineering Construction Corporation (CCECC) will invest USD 1.4 billion for the revitalisation of the Tanzania-Zambia Railway Authority (Tazara), the CEO of the authority Bruno Ching’andu announced at the Zambia International Mining and Energy Conference (ZIMEC 2025) held in Kitwe.
The Chinese company will support the railway infrastructure and operations of Tazara under a 30-year concession arrangement which is currently under negotiation procedure. This investment will “make significant step toward transforming TAZARA into a more efficient and reliable transport corridor. This partnership is expected to address the railway’s declining performance and restore its operational efficiency, the CEO Tazara said.
Under the terms of the proposed agreement, CCECC will invest USD 1 billion for full rehabilitation of Tazara’s railway track infrastructure, enhancing safety, efficiency, and capacity while USD 400 million will be used for the procurement of 32 brand-new locomotives and 762 new wagons, significantly increasing freight and passenger transport capacity. In addition, CCECC will be responsible for periodic major overhauls, alongside continuous maintenance, which will be conducted throughout the concession period to ensure long-term continuity and sustainability.
Under the 30-year concession period, 3 years will be dedicated to the construction and rehabilitation work, while the remaining 27 years involves full operational management to ensure long-term sustainability.
The decision to grant a concession follows an in-depth evaluation of Tazara’s challenges over the years, which necessitated urgent intervention. The public-private partnership (PPP) model was chosen after extensive due diligence to ensure alignment with authority’s long-term vision and the interests of its shareholders.
As the concessionaire, CCECC will focus on immediate rehabilitation of the tracks and supply of rolling stock to establish a strong foundation for success, will cover operational costs through concession fees payable to Tazara. The company will also carry out efficient maintenance and operation ot the railway system while ensuring uninterrupted service delivery and will handle back the fully rehabilitated assets at the end of the concession period.