Zambia Transportation Rail Sector Opportunities
Zambia’s limited rail networks are divided between two operating systems: Zambia Railways Limited and the Tanzania-Zambia Railway Authority (TAZARA), with significant efforts underway to develop the Lobito Economic and Development Corridor.
Opportunities will be available to U.S. companies as these railways will serve to transport critical raw materials (CRMs), strategic minerals, and products of EV battery value chain, from DRC and Zambia to various global destinations.
Lobito Corridor: The Lobito Corridor currently consists of a 1,300 km railway line traversing Angola from the Atlantic Ocean to the country’s borders with the Democratic Republic of the Congo (DRC) and Zambia. The corridor presents a significant investment opportunity especially on the Zambian side as it would see the development of a new rail line that connects to the existing infrastructure in Angola. The corridor has seen a resurgence in interest in recent months, as evidenced by the recent signing of several Memorandums of Understanding (MoU’s) and agreements related to the Lobito Corridor, most of which concern the development of the corridor and activities related to green and clean energy technologies, in particular EV battery value chain products. The parties involved are diverse, including the United States, EU, Angolan, DRC, and Zambian governments as well as the AfDB, Africa Finance Corporation, and a consortium comprising Trafigura, Mota-Engil, and Vecturis.
Zambia Railways Ltd (ZRL): The Zambian state-owned and operated ZRL network stretches almost 1,200 km from Victoria Falls on the border with Zimbabwe to Sakania on the border with the Democratic Republic of Congo, running through the Copperbelt and other mining-rich areas such as Ndola, Kitwe, and Chingola. The company owns and operates 25 locomotives and 1,300 wagons. It offers both passenger and freight services and has a bulk haulage capacity of 1,200 tons per train. The ZRL network connects to the TAZARA line at Kapiri- Mposhi in central Zambia and to the Chipata-Muchinji network that connects Zambia to Malawi and the Mozambican port of Ncala and is a gateway to the southern port of Durban in South Africa. ZRL presents significant opportunities for U.S. firms through upgrades and modernization as its infrastructure is more than a century old, having first been set up by the British South African Company in the early 1900s.
Tanzania-Zambia Railway Authority (TAZARA): The TAZARA rail line is one of the symbols of Sino-Africa cooperation, a trilateral project between Tanzania, Zambia, and China. The rail project was funded by China and constructed between 1970 and 1975. The TAZARA line runs roughly 1,860 km from Tanzania’s largest city, Dar es Salaam, on the coast of the Indian Ocean to Kapiri Mposhi in central Zambia. TAZARA is jointly managed by the Tanzanian and Zambia governments. The Zambian, Tanzanian, and Chinese governments are negotiating a mechanism to revitalize and modernize the rail line with China likely to fund the project, though the extent and details of the project are not public. TAZARA offers both freight and passenger transportation services between Tanzania and Zambia.
The partnership between the public and private sector (locally and internationally) is important, especially when it comes to the implementation of sustainable, fit-for-purpose infrastructure. U.S. firms in rail and related sectors have a strong global reputation for engineering, consulting, innovative technologies, and after-sale service, and are well-positioned to compete in Zambia’s market as rail consultants, related technology, and service providers will be needed in the development of the Lobito Corridor progresses.
For further information on opportunities within the rail sector in Zambia, contact: mailto:Jaisvir.Sewpaul@trade.gov