Minister of Transport and Logistics Frank Tayali says all Tanzania–Zambia Railway Authority (TAZARA) workers will be retained under the newly signed 31-year concession with China Civil Engineering Construction Corporation.
Delivering a ministerial statement in Parliament on Friday, Mr. Tayali has assured the house that no employee would lose their job, adding that government had secured guarantees for workers to receive their full benefits. He says between 200 and 300 employees will be directly absorbed by the concessionaire once the transition begins.
The minister has explained that Zambia, Tanzania, and China have signed a USD1.4 billion concession agreement aimed at fully modernizing the 1,860-kilometre railway line from Dar es Salaam to Kapiri Mposhi. The investment includes more than USD1.17 billion for rehabilitation works and an additional USD238 million for reinvestment over the life of the contract.
The project will introduce a new fleet of locomotives, wagons and passenger coaches, along with a modern logistics and dry-port hub in Kapiri Mposhi — a development expected to reposition Zambia as a regional trade gateway.
Upon completion of the three-year rehabilitation phase, freight volumes are projected to rise from the current 400,000 tonnes to 2.4 million tonnes annually, with potential to exceed 3 million tonnes within five years.
Mr. Tayali says government will further benefit from concession fees, a share of gross freight revenue, and reduced transport costs for key industries such as mining and agriculture. He has added that tax incentives given to CCECC are typical for large-scale concessions and necessary to make the project viable.
By Rachel Mumba.
