Business report by Leo Odera Omolo.

Tanzania has secured a colossal amount of money to the fine of USD 43, 000 from the United States to revamp its 1,000 km central railway line from Dar el salaam to Isaka in the Shinyanga region.

The Ministry of Infrastructure Development disclosed at the weekend that the Barlington Northern Santa Railway Company of the US have clearly signed and improvement of the line, which was built in the early 1900s.

The funding has been sourced from the US government through the US Trade and Development Agency and Barlington Northern.

The project will see the line carry more weight and train moving taster. This is expected peed up cargo movement between the lastly cargo, Rwanda and Burundi as well as reduce congestion at the port of Dar el salaam.

Tanzania’s Minister for Infrastructure and Development Dr. Shukuru Kwambwa, said at the weekend that the US Trade and Development Agency has contributed USD 838, 600 while BNSF gave 289, 600 for the feasibility study and modernization of the railway.

“The Development of the central line is important to the establishment of an important regional transportation,” said the Minister.

Eventually the same company will also conduct another railway line from Isaka to Rwanda and Burundi. The study seeks to upgrade the railway to a standard gauge allow trains to carry more weights and move train up to three times taster that the current system.

Last year the US government granted Tanzania USD 615, 000 for the Central line under the US African Trade lanes partnership, which was proposed to fund early investment analyses of upgrading of the Dar el salaam- Isaka railway.

The deal was signed by Larry Walter the director of the US Agency at the Minister Dr Kwambwa in Washington DC.

The project is part of the Central Development corridor for Tanzania, Rwanda and Burundi.

Experts say the revamping of the Central line, coupled with renovations currently being undertaken on the Tanzania, Zambia Railway Authority (TAZARA), will ease congestion at the Dar es Salaam port.

Stakeholders of the Dar el Salaam port met last week with President Jakaya Kikwete and resolved to and congestion as the facility with the next weeks by removing 5, 332 containers currently piled up at the port.

Participant of the meeting asked the container should be moved to Inland container depots which have a total capacity of 8,300 containers.

Congo and Zambia which rely on the services of the port, would also be consulted over the improvement of the port services, said a statement issued after the meeting

The meeting expressed concern over a tendency by some importers to form the power into a go down, a practice that leads to congestion

Participants at the stakeholders meeting included representatives from the Tanzania International Containers Terminals Services, Clearing and forwarding agencies, the Tanzania Transporters Association are container deport.

The central railway line is servicing an important region full of gold and Diamond mining companies therefore in is one of the busiest line in the west, most of this mines are located in Shinyanga and Mwanza regions and required efficient outlets to the sea

Ends

leooderaomolo@yahoo.com

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Date: Mon, 26 Jan 2009 06:14:56 -0800 [08:14:56 AM CST]
From: Leo Odera Omolo
Subject: US GIVES TANZANIA MILLION OF DOLLARS TO REFURBISH CENTRAL RAIL LINE.