Important conduit

TAZARA has been a catalyst for development and trade among several African countries, including Malawi, Zambia, Zimbabwe and the Democratic Republic of the Congo. TAZARA Managing Director Lewanika said that, in essence, enhancing the capacity and efficiency of TAZARA will remove a major bottleneck, and promote the expansion of China-Tanzania, China-Zambia and China-Africa trade. It currently takes about 3 to 4 days to haul goods between the port of Dar es Salaam and Zambia.

TAZARA was originally financed and built by the Chinese Government. Completed 37 years ago and costing $500 million, it was the largest single foreign-aid project undertaken by China at that time. 

Zambian Transport Minister Christopher Yaluma concedes that the railway has been operating without adequate working capital for decades. He said that the TAZARA Council of Ministers, who met in June 2012, resolved that the two shareholding governments jointly review the TAZARA Act to improve the railway's operating environment. It is expected that the planned amendments will provide a legal framework to accommodate optional sources and modes of recapitalizing, reconstruction and restructuring in 2013.

TAZARA Deputy Director Damas Ndumbaro said that underfunding is a major setback to many railway companies in Africa, stressing that the two shareholding governments should earmark enough funds to improve TAZARA operations. "We thank the Chinese Government for improving the rail-line, and customs procedures will be vital for cross border trade. We are optimistic that after the study, TAZARA will be one of the best railways to provide services," he said.

The rehabilitation of the inter-country railway link comes at a time when transportation between Common Market for Eastern and Southern African (COMESA) countries has risen steadily. "Several countries are counting on the study since TAZARA is the gateway to both SADC and COMESA countries, and links to regional transport networks to Eastern Africa, Asia and the Far East through Dar es Salaam port. Naturally, COMESA countries welcome and support the ongoing study toward its rehabilitation," said COMESA Secretary General Sindiso Ndema Ngwenya.

Stakeholders are also pushing for revision of the TAZARA Act, especially its outdated requirement that the managing director be Zambian, and the deputy director be Tanzanian because TAZARA headquarters are located in the latter country. "The law should be amended to allow rotation of the top leadership between the two countries," said Peter Srukamba, Chairman of the Tanzanian Parliamentary Committee on Infrastructure.

As with other African railways, the private sector has only limited involvement in TAZARA operations. An expansion of this involvement would enhance operational capacity and performance on a long-term and sustainable basis, and would also be consistent with requirements that the TAZARA legal framework be comprehensive, balanced and contextualized. "To make it easier for private sector participation, the TAZARA Privatization Act should be put in place," said Tanzanian Transport Permanent Secretary Eng. Omar A. Chambo.

Kenya Railways Managing Director Nduva Muli agrees that efficient railway transport is an important player in driving the economies of countries forward. He said that the history of railways has largely been one adapting to growth, and in the process spurring industrial development in previously unreached areas.

(Reporting from Kenya)