DAR ES SALAAM Tanzania (Xinhua) --
The Tanzania-Zambia Railway Authority (TAZARA)
said on Wednesday it needs about 250 million U.S. dollars of
investments in the short term and about 1.2 billion U.S. dollars
in the long term in order to get back to peak performance.
TAZARA Managing Director, called on private investors to partner
with TAZARA in order to achieve the desired investments, a
statement by the railway authority quoted the Managing Director
He said the two
shareholding governments of Tanzania and Zambia are in the
process of revising the legislation that established TAZARA in
order to make the company more commercially viable and
attractive to private players.
According to the
statement, Ching’andu made these remarks when he made a
presentation to the 7th East and Central Africa Roads
and Rail Summit 2016 in Dar es Salaam on Tuesday.
“The private sector
can take advantage of the public-private partnership (PPP)
models to partner with us in the running of the Dar es Salaam
commuter train managed by TAZARA, whose demand is massive and
cannot be satisfied at the moment,” he said.
He said TAZARA was
also open to PPPs in the installation of the signalling and
telecommunication systems, which had been vanadalised over the
years and were currently non-existent.
He also highlighted
PPP investment opportunities in TAZARA’s quarries and workshops,
which he pointed out as having huge potential but required
re-investment in equipment.
TAZARA has taken a number of measures in the last six months
with a view to reclaiming the market share of the available
cargo destined to or originating from Malawi, Zambia and the
Democratic Republic of Congo.
Among the measures,
he said TAZARA had transformed the application of freight rates
by adopting a more flexible tariff regime that was responsive to
macro-economic conditions and market trends.
desired goal was to make meaningful contributions to the
development of the economies of Tanzania and Zambia,” he said.
Over the years,
TAZARA’s passenger service operational levels had dropped
drastically to the very minimum, where four trains per week with
barely 455,000 passengers were transported in the 2014/2015
financial year, compared to ten years ago when the authority
used to run six trains per week and convey more than 900,000
constructed as a turnkey project between 1970 and 1975 through
an interest-free loan from China, with commercial operations
starting in July 1976. It covers 1,860 kilometres from Dar es
Salaam in Tanzania to New Kapiri Mposhi in Zambia.