China Civil Engineering Construction Corporation (CCECC) and China Railway Construction Company (CRCC) won the contract to build a 341-kilometre Standard Gauge railway (SGR) line connecting the Lake City of Mwanza to Isaka. Tanzania Foreign Affairs Minister Palamagamba Kabudi says the government will finance the railway line, which costs 3.06 trillion shillings ($1.32 billion).
The railway project is the fifth and last phase of Tanzania’s SGR under construction, ultimately connecting Mwanza to the Indian Ocean Port City of Dar es Salaam.
Tanzania’s SGR Project
Phase 1 of Tanzania’s SGR is a 202-kilometre railway connecting Dar es Salaam and Morogoro, and Phase 2 is 348 kilometres connecting Morogoro and Makutupora. Phase 3 is 294 kilometres connecting Makutopora and Tabor while Phase 4 is 130 kilometres connecting Tabora and Isaka.
Phase one of the project is at its final stages, slated for trials in April 2021 while Phase two is 50% complete.
The new railway line will replace the country’s old meter gauge railway, reduce congestion, and lower transport costs. AllAfrica reports that the Tanzanian SGR will cut freight costs by up to 40%, as each freight train will transport up to 10,000 tonnes per trip.
The SGR will also connect Tanzania to Burundi, DRC, and Rwanda, boosting regional trade.
READ ALSO: Standard Chartered Arranges $ 1.46 Billion Financing to Fund Tanzania’s SGR Project
