• Rail

TAZARA Targets 1.8 Million Tonnes by 2031 Under US\$1.4 Billion Revitalisation Deal TAZARA Targets 1.8 Million Tonnes by 2031 Under US\$1.4 Billion Revitalisation Deal

One of Southern Africa's most historic rail corridors is preparing for a dramatic turnaround, and the numbers now on the table suggest the Tanzania–Zambia Railway Authority (TAZARA) is serious about reclaiming its place as a backbone of regional movement.

Meeting at the Authority's head office in Dar es Salaam on 12 October 2026, the TAZARA Board signed off on a Five-Year Strategic Plan covering 2026/2027 to 2030/2031, together with a balanced Corporate Budget of US\$39.92 million for the coming financial year. The session was chaired by Prof Godius Kahyarara, Permanent Secretary in Tanzania's Ministry of Transport, with Eng Fredrick Mwalusaka, Permanent Secretary in Zambia's Ministry of Transport and Logistics, serving as co-chair.

At the heart of the plan sits the concession agreement signed in September 2025 with China Civil Engineering Construction Corporation, which commits US\$1.4 billion towards revitalising the line. The concessionaire has already begun mobilising equipment and carrying out infrastructure surveys, though several conditions still need to be satisfied before the arrangement takes full effect. Directors instructed management to set up a dedicated professional team to oversee the concession, verify railway assets, and keep a close watch on investment commitments, safety standards and contractual performance.

The freight projections tell the clearest story of ambition. TAZARA expects to move 110,000 tonnes in 2026/2027, climbing to 160,186 tonnes the following year and 234,103 tonnes in 2028/2029 while rehabilitation work continues. Once the concessionaire assumes freight operations on an upgraded network, volumes are forecast to leap to 1.2 million tonnes in 2029/2030 and 1.8 million tonnes in 2030/2031. Annual operating revenue is projected to reach US\$30.23 million by the final year of the plan.

For the travel and tourism sector across the region, the passenger side deserves attention. The 2026/2027 budget targets 225,543 passengers alongside 2,256 tonnes of parcels, with passenger services expected to generate US\$1.12 million. That figure is modest today, but a rehabilitated line running between Dar es Salaam and the Zambian Copperbelt opens genuine possibilities for rail tourism products, multi-country itineraries and overland adventure packages that currently struggle with unreliable timetables and ageing rolling stock.

Income for the year ahead breaks down into US\$12.94 million from freight, passenger, parcel and open-access operations, US\$6.53 million from non-operational sources, and US\$20.45 million in Government subventions from Tanzania and Zambia. Freight alone accounts for US\$8.56 million of the operational income, with open-access operations contributing US\$2.50 million. Spending will go towards staff, rolling-stock repairs, fuel, infrastructure maintenance and administration.

Over the full plan period, TAZARA anticipates cumulative investment of US\$207.57 million and a cumulative net profit of roughly US\$11.71 million. The funding mix shifts noticeably along the way, with US\$62.04 million in Government support concentrated in the first three years and US\$36 million in concessionaire financing arriving in the final two. That shift reflects a deliberate move away from state dependence towards concession-related earnings, property leases and passenger revenue.

Growth assumptions rest on rising cargo through the Port of Dar es Salaam and mineral traffic flowing from Zambia and the Democratic Republic of Congo. Both trends matter to the wider travel economy, because busier trade corridors typically bring more business travel, more hotel demand in secondary cities, and stronger justification for improved air and road connections feeding into the same routes.

The Board was candid about TAZARA's long decline and framed revitalisation as a critical opportunity to reverse it, calling for implementation strong enough to meet public and business expectations. Directors also pressed management to clarify which functions remain with the Authority after concession, and to handle employee transition, training and technology transfer properly.

Agencies building Southern and East African product should start watching this corridor closely. A working railway between the Indian Ocean and the Copperbelt would change how the region is sold, making cross-border rail journeys a viable selling point rather than a logistical gamble.