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Parliament Approves Loan For Rail Freight Expansion

ByArticle Source LogoTrackopedia04-22-20262 min
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The Tunisian parliament has approved a loan of EUR 45 million (USD 51.9 million) to finance infrastructure works on the railway network of Tunisian state railway SNCFT. The loan, which was agreed with the Arab Fund for Economic and Social Development back in 2024, is intended to expand capacity for rail freight transport for phosphate. The background to this is the limited rail freight transport capacity, which restricts the extraction and export of the raw material. State-owned phosphate company Gafsa produced an estimated 3.9 million t in 2025, down from 8 million t in 2011. The first phase of the programme with a budget of EUR 119.6 million involves the renewal of 190 km of track on lines 5, 14, 17 and 21. The technical studies have been completed, and the contracts are due to be awarded following a successful tendering process. A second phase worth EUR 473.4 million involves the renewal of a further 415 km as well as work on tunnels, stations, as well as control-command and signalling (CCS) systems. This is complemented by new maintenance facilities and specialist equipment. Phosphate’s rail freight transport currently generates 40% of SNCFT’s revenues. The timetable and financing for the remaining sections remain to be determined.

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