China Civil Engineering Construction Corp (CCECC) is set to invest over $1.4 billion in modernizing the historic Tanzania-Zambia railway line, also known as TAZARA. The investment aims to address the railway's challenges, which have hindered trade and logistics in Central Africa.

The TAZARA railway line, originally funded and built by China in the 1970s, serves as a crucial route for copper exports from Central Africa. It provides an alternative to bypass logistics bottlenecks in South Africa that have delayed copper and cobalt shipments. However, the railway has fallen into disrepair over the years, necessitating urgent intervention.

Negotiations for a 30-year concession are still underway, according to Bruno Ching'andu, managing director of the Tanzania-Zambia Railway Authority (TAZARA), which operates the line. The investment package includes $1 billion for the full rehabilitation of TAZARA's rail tracks, as well as $400 million for the purchase of 32 new locomotives and 762 wagons.

The modernization of the railway line is expected to strengthen trade between Tanzania and Zambia, improve logistics for the mining sector, and reduce transportation costs for both businesses and passengers. This comes as the United States backs a competing transport corridor for minerals, known as Lobito, which is centered around an Angolan port.

In 2023, China, Tanzania, and Zambia signed a memorandum of understanding to rehabilitate the 1,860-kilometer (1,160-mile) railway. This marks the most significant upgrade to the railway since its construction. The investment is a significant boost to the region's infrastructure development and is expected to have a positive impact on the local economy.

The modernization of the TAZARA railway line is also expected to increase the competitiveness of the region's mining sector. Copper and cobalt are critical minerals in the production of electric vehicle batteries, and the upgraded railway line will provide a more efficient and cost-effective way to transport these minerals to global markets.

In conclusion, the $1.4 billion investment in the TAZARA railway line is a significant development for Central Africa's infrastructure and economy. The modernization of the railway line will boost trade, improve logistics, and reduce transportation costs, making the region a more attractive destination for investment and trade.