Privatization of Tanzania-Zambia Railway to be discussed

Zambia and Tanzania are going to discuss the privatization of Tazara (Tanzania-Zambia Railway) in Lusaka, local media in Lusaka reported Tuesday.

The Tanzanian Presidential Parastatal Sector Reform Commission is in Lusaka to hold talks with the Zambia Privatization Agency ( ZPA) over the privatization, according to The Post daily.

Tazara's business reduced from 1.2 million tons of cargo in 1990 to 630,000 tons in 2003 and needs 25 million U.S. dollars for locomotive repairs alone, reported the newspaper.

The reform commission will hold talks with Zambian Ministry of Communications and Transport and ZPA over the initial steps towards the privatization of the 1,860-km line built by China between 1970 and 1976.

The discussion will revolve around what mode of privatization -- concessioning, bringing in a strategic investor, or general public participation -- to pursue.

The report said the governments of Zambia, Tanzania and China will later hold a tripartite meeting on participation by Chinese investors in Tazara's future.

Source: Xinhua