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The Tanzania-Zambia Railways Authority (TAZARA), a bi-national railway jointly owned by the governments, Tanzania and Zambia, is lobbying stakeholders for the cancellation of a long-term debt of over $700 million.

TAZARA's Chief Executive Officer, Bruno Ching'andu, said the debts have negatively affected the operations of the authority, according to a report by Tanzania's Daily News on Wednesday. Currently, the railway authority cannot access financial assistance via loans from financial institutions, thereby making capitalisation of the railway authority a difficult task.

"The debts which the authority acquired in the past have negatively affected the operations of the authority. But, if these debts could be cancelled, the institution can get back to its normal operations," Ching'andu said.

The 1,860km rail line spanning Dar es Salaam, Tanzania to New Kapiri Mposhi, Zambia, was constructed in the 1960s by China. The railway system used to transport an average of 1 million tonnes of goods in the 1970s and early 80s, but volume of cargo transported has dropped over the years to 7,860 tonnes between 2014 and 2016. It ran a hundred locomotives at inception compared to a paltry 14 locomotives in 2016.

TAZARA’s 2016 performance reports revealed that revenues over the last 10 years averaged between Sh45 billion ($20.2 million) to Sh60 billion ($27 million) in contrast to expenditures between Sh60 billion and Sh110 billion ($49.3 million). Salary arrears at TAZARA topped Sh3.3 billion ($1.5 million), out of which Sh54 million ($24,000) was owed to employees who had quit their jobs.  

In 2016, TAZARA stakeholders reached a consensus with the China Railway Group (CRG) to handover management to the latter. The CRG handles China’s vast national rail network, transporting commuters and freight. However, Tanzania Railway Workers Union Secretary General, Boaz Nyacheche, warned the plan by the CRG to take over management of TAZARA might go burst if resolute efforts by Tanzania and Zambia were not made to increase trade volumes. He went on to blame both governments for its non-existent support of rail authority over the years.   

"If the railway became fully operational, the cost of commodities can be low because it is cheaper to load cargo on rail than on the roads. Our roads can also be preserved unlike the current situation where the roads are being abused," Ching’andu said.

TAZARA was established over 40 years ago with a vision to connect the eastern and southern terrains and to foster sustainable development of regional trade and economic growth in Africa.