Chinese companies across the mining, shipping, and logistics sectors are supporting a $1.24 billion project to modernise the TAZARA railway, a key transport link connecting Zambia’s copper-rich region to Tanzania’s port of Dar es Salaam, with the aim of improving export routes for critical minerals, as seen one Business Insider Africa.
Major copper producers CMOC Group Ltd. and Zijin Mining Group Co. are working alongside the state-owned China Civil Engineering Construction Corporation to rehabilitate the 1,860-kilometre railway.
The TAZARA line was originally constructed in the 1970s with Chinese funding and engineering support during the leadership of Mao Zedong.
The railway serves as a vital corridor linking Zambia’s mineral-rich areas to the Indian Ocean, making it an important route for exporting copper and other resources.
According to Bloomberg, CCECC will control an 80% stake in the joint venture overseeing the project. The remaining shares will be distributed among Jiayou International Logistics, COSCO Shipping Holdings, and subsidiaries of CMOC and Zijin, each holding smaller portions.
Jiayou has disclosed plans to invest approximately $62.2 million in the project.
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This development comes at a time of growing global competition for access to Africa’s critical minerals.
The United States has been taking steps to challenge China’s strong position in mineral supply chains, including forming a partnership with the Democratic Republic of Congo to secure supply access for American companies.
The upgraded TAZARA railway is also expected to compete with the Lobito Corridor, a rail project supported by the United States and the European Union that links central Africa’s copper belt to Angola’s Atlantic coast.
Zambia and Tanzania have granted CCECC a 30-year concession to manage and operate the railway. Once the upgrades are completed, the improved line is expected to ease pressure on regional road networks, where a large share of mineral exports is currently transported by trucks.
Following the rehabilitation, the project partners intend to operate freight services using newly acquired equipment, including locomotives and containers. However, the project is still awaiting final approval from Chinese authorities.
The investment also reflects an evolving approach within China’s Belt and Road Initiative, with increasing participation from private sector firms operating under commercially driven models.
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Image Credit: Business Insider Africa
