Cost comparison SGR Kenya vs SGR Tanzania

Tanzania signs $2.2billion final SGR section deal with China​

Wednesday, December 21, 2022

President Samia Suluhu Hassan speaking to various leaders immediately after the signing of the Contract for the Construction of the Standard Gauge Railway (SGR) section of Tabora to Kigoma (km 506) at an event held at State House in Dar es Salaam


By The Citizen Reporter
Media/news company
Mwananchi Communication Limmited

Summary​

  • President Samia, who witnessed the signing, said the construction of the 506 km final section of the Standard Gauge Railway (SGR) from Tabora to Kigoma would be completed in 2026, nine years after it began.
President Samia Suluhu Hassan on Tuesday, December 20 witnessed the signing of a $2.2-billion contract with a Chinese companies CCECC and CRCC to build the final section of the Standard Gauge Railway line aimed at linking the country with its neighbours in the West .


The 2,561-kilometre network will link the port of Dar es Salaam to Mwanza on Lake Victoria, with eventual spurs to Burundi, Democratic Republic of Congo (DRC), Rwanda and Uganda.

President Samia Suluhu Hassan, who witnessed the signing, said the construction of the 506 km final section of the Standard Gauge Railway (SGR) from Tabora to Kigoma would be completed in 2026, nine years after it began.


President Samia Suluhu Hassan witnesses the signing of the Contract for the Construction of the Standard Gauge Railway (SGR) section from Tabora to Kigoma (km 506) between the Government through Tanzania Railways Corporation (TRC) by its Director Masanja Kadogosa and Representatives of joint venture companies CCECC and CRCC on December 20, 2022

"Upon completion of the SGR, Tanzania will be in a better position to utilise its strategic geographical positioning to facilitate cross-border trade," she said.

President Samia said Tanzania's investment in the SGR had now reached $10.04 billion or Sh24 trillion, including the latest contract.

"We have to borrow for this important infrastructure and other sustainable development projects because we don't have enough local resources," she said, dismissing criticism that the country was taking on too much debt.

She said the new railway would reduce cargo transportation costs between the Dar es Salaam port and the DRC from a minimum of $6,000 per tonne to about $4,000 once it becomes fully operational.

Meanwhile transportation time would fall from 30 days by truck to 30 hours in 2027.

China is the biggest investor in Africa, pumping billions of dollars into railroads, ports and airports in exchange for securing oil and commodity supplies such as copper and cobalt.


These infrastructure projects are built through vast loans issued by China, but Beijing has been criticised for lending too much to poor countries, without sufficiently scrutinising their ability to repay.

Tanzania's railway system has two existing networks, Tazara which links Dar es Salaam to Zambia and the other connecting it to Kenya and Uganda.

 

Tanzania SGR project threatens Mombasa port business​

By Mercy Simiyu
December 21st, 2022 2 min read



Kenya President William Ruto holds talks with his Tanzanian counterpart Samia Suluhu. PHOTO: COURTESY

Tanzania has moved ahead of Kenya in the race to control the cargo import and export transport business cargo in the East African Community (EAC).

This follows the signing of a $2.2 billion (about Sh260 billion) deal between President Samia Suluhu Hassan’s government and China to construct the final section of the Standard Gauge Railway line aimed at linking the country with its neighbours in the west.

The 2,561-kilometre network will link the port of Dar es Salaam to Mwanza on Lake Victoria, with eventual spurs to Burundi, the Democratic Republic of Congo (DRC), Rwanda, and Uganda.

President Samia Suluhu Hassan, who witnessed the signing, said the construction of the 506 km final section of the Standard Gauge Railway (SGR) from Tabora to Kigoma would be completed in 2026, nine years after it began.
“Upon completion of the SGR, Tanzania will be in a better position to utilize its strategic geographical positioning to facilitate cross-border trade,” she said, as reported by Citizen.

“We have to borrow for this important infrastructure and other sustainable development projects because we don’t have enough local resources,” she said, dismissing criticism the country was taking on too much debt.

Meanwhile, Kenya is struggling to fund the remaining part of the SGR construction from the port of Mombasa to Uganda, South Sudan, and Ethiopia.

Transport Cabinet Secretary Kipchumba Murkomen recently conceded President William Ruto’s government is seeking partners to help in extending the construction works, with the railway from Mombasa currently terminating at the resort town of Naivasha.

The Tanzanian railway line to Mwanza could increase competition for Ugandan traders who currently rely on the Port of Mombasa.

Tanzania has already taken over a majority of the cargo transport business to DR Congo, Rwanda, and Burundi from Kenya.

 
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