TAZARA Targets 16-Fold Freight Growth Under US$1.4 Billion Railway Revitalisation Plan
The Tanzania-Zambia Railway Authority (TAZARA) is targeting an increase in annual freight volumes to 1.8 million tonnes by the 2030/2031 financial year under a five-year strategic plan backed by a US$1.4 billion rehabilitation and concession programme.
The target is part of TAZARA’s strategic plan for 2026/2027 to 2030/2031, which was approved during the authority’s 123rd Board of Directors meeting in Dar es Salaam last week.
The plan projects freight volumes to rise from 110,000 tonnes in 2026/2027 to 234,103 tonnes in 2028/2029, before increasing sharply to 1.2 million tonnes in 2029/2030 and reaching 1.8 million tonnes in 2030/2031.
The projected volumes represent an increase of approximately 1,536% from the 2026/2027 target, reflecting the scale of the recovery expected as railway infrastructure is rehabilitated and China Civil Engineering Construction Corporation (CCECC) assumes freight operations under the concession arrangement.
The planned expansion is intended to restore TAZARA’s commercial performance and strengthen its role in transporting bulk commodities between Zambia, Tanzania and international markets through the port of Dar es Salaam.
TAZARA Sets US$39.92 Million Operating Budget
Alongside the five-year strategy, the board approved a corporate budget of US$39.92 million for the 2026/2027 financial year, with operating expenditure projected at the same amount.
The budget provides for the transportation of 110,000 tonnes of freight, 225,543 passengers and 2,256 tonnes of parcels, taking into account the railway’s available rolling stock and potential service disruptions during rehabilitation works.
The board emphasised the need for stronger financial controls, improved revenue generation and continued engagement with the governments of Zambia and Tanzania to secure operational support.
The measures are intended to help the authority manage its immediate operating requirements while preparing for a broader expansion of services as infrastructure and equipment improve.
TAZARA continues to face financial pressures, limited operating capacity and reliance on government support, making the successful implementation of its revitalisation strategy critical to its long-term sustainability.
US$1.4 Billion Concession to Drive Rehabilitation
The railway’s planned recovery is expected to be driven by a US$1.4 billion concession agreement involving the governments of Zambia and Tanzania and CCECC.
The programme provides for investment in railway infrastructure and equipment over the concession period, with the objective of improving operational reliability and increasing freight capacity.
The five-year strategic plan identifies infrastructure rehabilitation, rolling-stock replacement, market development and digitalisation as key priorities for improving efficiency and strengthening the railway’s financial position.
The planned investment is expected to improve the availability of locomotives and wagons, address infrastructure constraints and enable TAZARA to compete more effectively for bulk cargo.
Potential freight opportunities include copper and other minerals, agricultural commodities and general goods moving between the two countries and through the port of Dar es Salaam.
However, achieving the projected growth will depend on the pace of rehabilitation, the availability of operational equipment and the railway’s ability to attract sufficient cargo to use the expanded capacity.
Strategic Corridor for Zambia’s Mineral Exports
TAZARA provides a railway connection between Zambia’s Copperbelt and Tanzania’s port of Dar es Salaam, offering exporters an alternative route to international markets.
The corridor is particularly important for Zambia’s mining sector, which depends on efficient transport infrastructure to move copper and other mineral products to overseas customers.
A more reliable railway service could help reduce pressure on road transport, improve logistics efficiency and provide additional capacity for regional trade.
The anticipated increase in freight volumes could also create opportunities for freight forwarders, cargo handlers, warehousing operators and other logistics service providers operating along the corridor.
For Tanzania, stronger TAZARA operations could support greater freight activity through Dar es Salaam, while improved rail connectivity could deepen commercial links between the two countries.
Freight Growth Expected to Accelerate From 2029
The strategic plan projects the most significant increase in freight volumes from the 2029/2030 financial year, when annual traffic is expected to rise to 1.2 million tonnes from 234,103 tonnes in the preceding year.
Volumes are then projected to reach 1.8 million tonnes in 2030/2031 as rehabilitation advances and freight operations expand under the concession programme.
The scale of the projected increase highlights the importance of aligning infrastructure improvements with customer demand, reliable train services and sufficient rolling stock.
TAZARA’s longer-term objective is to reduce its dependence on government subsidies and move towards financial sustainability by increasing freight volumes, strengthening revenue collection and improving operational efficiency.
The success of the strategy will ultimately depend on whether the planned investment translates into dependable services, higher cargo throughput and sustainable revenue growth.
Originally financed by China in the 1970s, TAZARA was developed to provide Zambia with access to the Tanzanian coast for copper exports and fuel imports.
The railway remains a strategic regional trade corridor, and its planned revitalisation is expected to play an important role in strengthening transport connectivity between Southern and East Africa.
