- New investment in Tanzania’s railways sector is expected to directly benefit nearly 900,000 people and indirectly impact an estimated 3.5 million.
- Tanzania operates two railway systems, totaling 3,682 km in length.
Tanzania railway sector is poised for immense growth as the World Bank poured significant funding by approving $200 million in financing from the International Development Association (IDA) which is a part of the bank.
According to available information from the World Bank statement made on Friday, the bank said the financing for the second phase of the Tanzania Intermodal and Rail Development Project (TIRP-2) will improve safety, climate resilience, and operational efficiency along this railway segment.
Read also: AfDB approves $696.4M financing for Tanzania-Burundi-DRC railway project
Tanzania railway plan anchored on Dar- Morogoro SGR
The funding comes a few weeks after Tanzania Railways Corporation (TRC) began its inaugural trial journey of the electric Standard Gauge Railway (SGR) train from Dar es Salaam to Morogoro as part of the implementation of a directive by the Tanzanian President Samia Suluhu Hassan.
The President’s directive comes as motivation towards the delay of implementation dating back to April 2017. President Samia directed the commencement of SGR train services from the nation’s commercial capital Dar es Salaam to the nation’s capital Dodoma by July this year.
President Samia was quoted saying, “I have been hearing about changes in the start dates for train services via the SGR railway from Dar es Salaam to Dodoma, and indeed, citizens are tired of excuses; they want to see the railway in operation. Therefore, I direct that by the end of July 2024, SGR railway services between Dar es Salaam and Dodoma must have commenced.”
Additionally, apart from strengthening infrastructure and supporting transport studies, the project components are also focused on strengthening the climate resilience of the Kilosa-Gulwe-Igandu section, providing operational and institutional support, and supporting the emergency response.
Moreover, the project is expected to directly benefit nearly 900,000 people and indirectly impact an estimated 3.5 million, roughly five per cent of Tanzania’s population. This includes railway users, residents along the line, businesses involved in trade, and communities along the Kinywasungwe catchment area.
World Bank Country Director Nathan Belete said in a statement that while Tanzania’s transportation network is extensive, there are persistent bottlenecks in maintenance and capacity limiting its full use.
“This investment will directly address the bottlenecks in the rail network to enhance efficiency, capacity, and competitiveness so as to maximize Tanzania’s unique position to facilitate regional connectivity,” he added.
At the moment, Tanzania operates two railway systems, totaling 3,682 km in length. These comprise the meter gauge Tanzania railway (2,707 km) managed by the Tanzania Railway Corporation, and the Tanzania-Zambia railway line (975 km), alongside a cape gauge railway system under the Tanzania-Zambia Railway Authority (TAZARA).
Further, there is a third system, featuring a standard gauge railway along the Central Corridor, is under construction in a phased development. Building upon the achievements of phase one, TIRP-2 continues the efforts initiated by the IDA-financed Tanzania Intermodal and Rail Development Project (TIRP-1), which concluded in September 2022.
TIRP-1 focused on improving the meter gauge railway section between Dar es Salaam and Isaka (970 km), including track and bridge rehabilitation, axle load capacity enhancement, and the revitalization of intermodal terminals at key locations.
According to Mr Yonas Mchomvu World Bank senior transport specialist and task team leader, the bank puts emphasis of the new project on climate-informed infrastructure and resilience measures, aiming to adapt the corridor to natural disasters while fostering private sector involvement to spur economic growth and efficiency.
Read also: CFAO Group invests $3 million in BasiGo to boost East Africa’s electric bus production
Why Tanzania is banking on trains
Just last month, the Tanzania government signed a $91.76 million financial agreement with the African Development Bank (AfDB) to commence construction of the modern railway that aims to connect the nation with neighbouring countries, Burundi and the Democratic Republic of Congo (DRC).
According to a report by the Citizen, the project is part of the Standard Gauge Railway (SGR) which stretches from the port of Dar es Salaam to connect Tanzania with the neighbouring countries through the central corridor of transportation.
The concessional loan targets to finance the construction of sections six and seven of the modern railway, from Tabora to Kigoma and from Uvinza to Malagarasi.
According to Tanzania’s Minister for Finance, Mwigulu Nchemba the construction of the 567 kilometres will be implemented in the space of seven years, starting from 2024 to 2031.
“The goal of this project is to connect Tanzania with Burundi through a modern railway from Malagarasi to Musongati and in the future, connect with DRC from Malagarasi,” said Minister Nchemba during the signing ceremony.
Further, the section is part of the “Multinational Tanzania/Burundi/DR Congo joint standard gauge railway project” which seeks to connect the three countries through modern railway.
“The contract we have signed today, will strengthen rail transport and improve regional integration and commercial relations between our country and our neighbours in Burundi and the DRC,” he said.
The finance minister also said Burundi has business opportunities that include the presence of nickel of approximately 250 million tonnes but challenges of transportation to the port of Dar es Salaam prevent the opportunity from developing the economy of both countries.
The SGR trains, running at an average speed of 160km per hour, will cut the time between Dar and Morogoro to about two hours from the current four-hour journey by buses and five hours by train on the old metre gauge railway.
More importantly, the recent test marks a significant step forward in Tanzania’s efforts to modernize its transportation infrastructure and boost connectivity across the nation. Tanzania targets to replace the rather aged and less efficient meter-gauge railway system established during the colonial East African Railways.
The South Korean-made train, coupled with the Turkish/Chinese-built railway line, is poised to become one of Africa’s most advanced cargo and passenger rail systems, capable of reaching speeds of up to 160 kilometers per hour.
Established in 1960, the World Bank’s IDA aims to support the world’s poorest countries through grants and low to zero-interest loans, fostering economic growth, poverty reduction, and improvement in the lives of impoverished populations.
With a significant focus on Africa, IDA has been a key contributor to development initiatives, positively impacting billions of people across the globe since its inception.
