The process to find an equity partner to recapitalize the Tanzania Zambia Railway Authority (TAZARA) has been launched by Zambia and Tanzania.
The two nations have agreed to look for a partner who will put in funds to turn around the fortunes of the enterprise, according to Transport and Logistics Minister FRANK TAYALI.
According to Mr. TAYALI, the Zambian government has already budgeted K57 million for the railway company’s recapitalization procedure this year.
When Mr. TAYALI met with TAZARA employees to talk about the company’s future, he said this in Mpika.
According to a recent research on freight traffic on the Zambia-Dar es Salaam Road corridor, roughly 2,050 trucks pass through the area each day.
He continued, “The analysis has also shown that, if reorganized, TAZARA might benefit from the transportation of nearly 30 million metric tons of cargo from the port of Dar es Salaam in the next ten years.”
The company has to carry roughly 600,000 metric tonnes of cargo annually to break even, but is currently only transporting about 200,000 tonnes, according to TAZARA Managing Director BRUNO CHING’ANDU, who spoke at the same conference.
According to Mr. CHING’ANDU, the company is optimistic about brighter times in light of the government’s recent commitment to and interest in the business.
The Minister was available for questions from the TAZARA staff regarding the institution’s current state and future plans.
