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Transport and Logistics Minister, Frank Tayali, has announced a US$1.4 billion concession agreement aimed at reviving the Tanzania–Zambia Railway Authority (TAZARA), marking the most significant investment in the railway since its construction five decades ago.
Speaking in Parliament, Tayali said the deal—signed between the Governments of Zambia, Tanzania and the People’s Republic of China—paves the way for a private-sector-led transformation of the 1,860-kilometre line, which links Kapiri Mposhi to the Port of Dar es Salaam.
“This railway was once the economic artery that connected Zambia to the Indian Ocean, but years of underinvestment brought it to its knees. Today, we are taking decisive action to restore it to its rightful place as a driver of national and regional development,” Tayali said.
Built between 1970 and 1975 with support from Tanzania and China, TAZARA once symbolised Pan-African unity and South–South cooperation.
At its peak in 1986, it moved more than 1.2 million tonnes of freight.
However, freight volumes have fallen to below 100,000 tonnes in recent years, as ageing equipment, inadequate maintenance and mismanagement eroded its capacity.
Faced with mounting operational losses, the partner governments opted for a concession model to restore the line to full functionality.
Read more: Government pledges full support to Chinese company in US$1.4bn TAZARA revitalization deal
Under the 31-year concession agreement, China Civil Engineering Construction Corporation (CCECC) will invest US$1.4 billion, including:
US$1.17 billion for rehabilitation and new equipment;
US$238 million for periodic reinvestment to maintain long-term operability.
The investment will fund the full rehabilitation of the 1,860-km track, a modern fleet of 34 locomotives, 760 wagons and 16 passenger coaches, as well as the construction of a state-of-the-art logistics and inland dry port in Kapiri Mposhi.
According to Tayali, “Kapiri Mposhi will no longer be just a terminus. It will become a bustling logistics gateway that positions Zambia as a land-linked and competitive regional hub.”
Once fully operational, freight volumes are expected to jump from the current 400,000 tonnes to 2.4 million tonnes within two years, surpassing 3 million tonnes within five years.
Tayali reaffirmed that the welfare of TAZARA employees remained a priority under the New Dawn government.
Hundreds of additional jobs are expected to emerge from expanded operations in warehousing, customs, cargo handling and security.
The Treasury stands to benefit through guaranteed concession fees, a share of gross freight revenue and reduced road maintenance costs as heavy cargo shifts from highways to rail.
Time-bound tax incentives—including a five-year zero percent corporate tax rate—are part of the agreement.
Tayali emphasised that these incentives were standard for major infrastructure investments and structured to phase out as revenues grow.
Tayali said the project “reclaims a historic asset for a modern purpose—turning a line of freedom into a powerful engine of trade, jobs and shared prosperity.”
With works now underway, government says the revitalisation signals a decisive shift toward integrated logistics, value addition, and reduced dependency on road transport.
Zambia’s long-awaited vision of becoming the region’s transport and trade hub, officials say, is now firmly within reach.
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