ALL TAZARA WORKERS TO BE RETAINED UNDER US$1.4 BILLION RAIL CONCESSION

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Posted by admin on November 15, 2025 at 5:07 AM

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Government has assured that all employees of the Tanzania–Zambia Railway Authority (TAZARA) will be retained under the newly signed US$1.4 billion revitalisation concession agreement with China Civil Engineering Construction Corporation (CCECC).

Delivering a ministerial statement in Parliament, Minister of Transport and Logistics Frank Tayali said the concession guarantees job security for workers as TAZARA continues to exist as a bi-national entity between Zambia and Tanzania.

Mr. Tayali explained that between 200 and 300 qualified employees will be directly absorbed by the concessionaire, while another 200 to 300 workers transitioning to CCECC will receive their full terminal benefits before moving.

He added that the new operations and logistics hub will create hundreds of additional jobs in freight handling, customs, warehousing, and security.

The concession, signed by Zambia, Tanzania, and China, will modernize the 1,860-kilometre railway line from Dar es Salaam to Kapiri Mposhi. The investment includes US$1.17 billion for rehabilitation works and US$238 million for reinvestment over the 31-year contract.

The project will introduce a new fleet of locomotives, wagons, and passenger coaches, alongside a modern logistics and dry-port hub in Kapiri Mposhi, repositioning Zambia as a regional trade gateway.

Upon completion of the three-year rehabilitation phase, freight volumes are projected to rise from 400,000 tonnes annually to 2.4 million tonnes, with potential to exceed 3 million tonnes within five years.

Mr. Tayali said the agreement delivers both direct and indirect financial benefits to Zambia A guaranteed annual concession fee from the first year of operation, A share of gross revenue from freight operations throughout the concession period, Reduced transport costs for mining and agriculture, enhancing competitiveness and Preservation of the road network by shifting heavy cargo from trucks to rail

He emphasized that tax incentives granted to CCECC are standard for large-scale concessions and necessary to ensure project viability.

“This agreement delivers both direct and indirect financial benefits to the Zambian treasury while securing jobs and modernizing our transport infrastructure,” Mr. Tayali said.