Home / Business / Companies

Zambia, Chinese firm seal railway construction deal

Xinhua | Updated: 2016-11-03 10:11

LUSAKA -- Zambia on Wednesday signed a deal for the construction of a new railway project with China's state-run firm that will enhance transportation in the southern African nation.

The 388-kilometer railway, to run from the eastern town of Chipata to the central town of Serenje via another eastern town of Petauke, will be constructed by China Civil Engineering Construction Company (CCECC), at a cost of $2.3 billion within a four-year period.

"This project aims at enhancing regional trade and transport competitiveness by providing an alternative trade route to the East Coast of Africa via the Port of Nacala in Mozambique." Minister of Transport and Communications Brian Mushimba said at a signing ceremony in Lusaka, the country's capital.

The project will provide the much-needed link between the Zambian main railway line network with the Malawian railway line network through the existing Chipata-Mchinji railway line which forms part of the Nacala Corridor, Mushimba said.

The project will enable the government to save funds used on rehabilitation of damaged roads due to haulage of bulk and heavy cargo.

The project, he added, is meant to enhance regional and international trade through the Nacala Development Corridor which involves Zambia, Malawi and Mozambique.

According to him, the project is one of the strategic infrastructure projects the government intends to implement through the China-Africa Cooperation framework announced by the Chinese government during the 2015 Forum on China-Africa Cooperation (FOCAC) held in South Africa where $60 billion fund was pledged.

He further expressed confidence in the Chinese firm's ability to construct the railway within the stipulated period because it has wealth of experience in undertaking railway construction projects.

On his part, Chinese Ambassador to Zambia Yang Youming said the signing and implementation of the project will further promote bilateral cooperation between the two countries.

The railway line, Yang said, will promote Zambia's trade, investment, employment and sustainable development and open another route to the sea for the landlocked southern African nation.

"I believe it will be an important part of the integrated southern African transportation system which connects Zambia with Tanzania, the Democratic Republic of Congo, Malawi and Mozambique," he added.

Most Viewed in 24 Hours