The Tanzanian government has secured funding for the construction of a section of the SGR linking Tanzania to Burundi, overseen by the TRC. The project aims to enhance connectivity across East Africa, with operational sections and ongoing construction efforts. Agreements have been made with international financiers to support the next phase of development, with expectations of increased revenue from freight services once operational.
The Tanzanian government has successfully secured financing for the construction of a vital segment of the Standard Gauge Railway (SGR), which will connect Tanzania and Burundi. This project, overseen by the Tanzania Railways Corporation (TRC), entails the development of a 2,561-kilometer railway line that will link the port city of Dar es Salaam to the northwestern region of Mwanza, eventually extending to neighboring countries such as Burundi, the Democratic Republic of the Congo, Rwanda, and Uganda. Currently, the operational section between Dar es Salaam and Dodoma is functioning, while other phases are actively under construction. On a recent occasion, TRC Acting Director General Mateshi Tito announced the completion of negotiations with three international financial institutions, namely Standard Chartered, the China Export and Credit Insurance Corporation (Sinosure), and the African Development Bank (AfDB). “Very soon we are going to sign the contract to enable the construction of the section to begin,” stated Mr. Tito, referring to the funding provision for the railway segment from Uvinza in Kigoma to Musongati in Burundi. The specifics of the financial contributions from these bodies have not yet been disclosed. Mr. Tito further indicated that progress has been made across various sections of the railway, with notable completions reported: the Isaka-Mwanza section at 60.62%, while the Makutupora-Tabora and Tabora-Isaka sections are at 14.53% and 6.14%, respectively. Additionally, ongoing discussions with potential investors are focused on locomotive procurement and the construction of the Mtwara-Mbamba Bay line. In support of this initiative, Public Investment Committee (PIC) Chairman Augustine Vuma Holle highlighted the significant funding of approximately $10 billion already expended on the railway’s development. He expressed optimism that freight train services set to commence next February will significantly enhance revenue collection, underscoring that revenues chiefly accrue from freight transportation, which constitutes the majority of total earnings.
The construction of the Standard Gauge Railway (SGR) in Tanzania represents a pivotal infrastructure initiative aimed at enhancing connectivity within East Africa. The project is designed to modernize the railway system, facilitating improved freight and passenger transport efficiency across several nations. The goals include boosting trade, enhancing logistics, and fostering economic growth through enhanced accessibility to Tanzania’s Indian Ocean port and beyond. As sections of the railway continue to progress, the involvement of international financiers underscores the project’s significance and the anticipated economic benefits it promises to deliver.
In conclusion, the Tanzanian government’s recent acquisition of funding for the SGR project marks a significant milestone in the ongoing development of this extensive railway system. With various sections nearing completion, the anticipated commencement of freight services next February is expected to substantially increase revenue generation. This venture not only reflects Tanzania’s commitment to improving its transportation infrastructure but also presents an opportunity to enhance regional connectivity and economic collaboration across East Africa.
Original Source: www.theeastafrican.co.ke
