Chinese firms join $1.2bn rail project to boost exports

A $1.24 billion railway modernisation project is being supported by Chinese mining, shipping, and logistics companies to improve the link between Zambia’s copper belt and Tanzania’s Dar es Salaam port, enhancing export channels for critical minerals.

Major copper producers, including CMOC Group Ltd. and Zijin Mining Group Co., are collaborating with state-owned China Civil Engineering Construction Corporation to revamp the 1,860-kilometre Tazara railway. The line was initially constructed in the 1970s with Chinese funding and engineering support under Mao Zedong.

This railway serves as a vital route connecting Zambia’s mineral-rich areas to the Indian Ocean, playing a key role in exporting copper and other resources.

As part of the deal, CCECC will control an 80% stake in the joint venture overseeing the project, according to Bloomberg. The remaining shares will be distributed among Jiayou International Logistics, COSCO Shipping Holdings, and subsidiaries of CMOC and Zijin, each holding smaller portions. Jiayou has indicated it will contribute about $62.2 million.

The initiative comes at a time of growing global rivalry over Africa’s critical mineral resources. The United States has been making efforts to challenge China’s dominance in supply chains, including forming a minerals partnership with the Democratic Republic of Congo to secure access for American companies.

Rival Rail Corridor

The upgraded Tazara line is expected to rival the Lobito Corridor, a railway backed by the US and EU that links central Africa’s copper belt to Angola’s Atlantic coast.

Authorities in Zambia and Tanzania have granted CCECC a 30-year concession to manage the railway. Once improvements are completed, the line is projected to ease pressure on regional roads, which currently handle most mineral transport via trucks.

Following the upgrades and procurement of new equipment such as locomotives and containers, the partners intend to operate freight services on the route. However, the project is still awaiting final clearance from Chinese regulators.

This investment also signals an evolution in China’s Belt and Road Initiative, with a stronger role for private companies undertaking projects based on commercial viability.

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