Rail transport is usually the most suitable mode of transportation for heavy traffic flows when speed is also an advantage because of the lower cost per person per load as the train load increases.

In Tanzania, rail transport accounts less than a half per cent to the GDP of the country. Although rail has always contributed a tiny proportion of value-added in transportation, its share of value-added continues to decline because road transport (freight and passenger) has virtually taken over all the traffic previously conveyed by rail.

The railways in Tanzania are regulated and operated by the Tanzanian Railway Corporation, which was established by the government . It inherited a rail network, from British Colonial masters, which was designed in a fashion to facilitate the flow of goods, such as groundnuts,Coffee , Maize  and cotton, from the inlands to the coast, where they were shipped to Britain.

During this period, Tanzania’s single-narrow-gauge railway line was constructed and for many years was the only mode of freight movement between parts of the country. The current rail network consists of gauge tracks and  of standard gauge tracks which connect Dar es salaam With Other Towns

Years of neglect and lack of investments have severely hampered the capacity of the rail network to act as a mass transit vehicle. As part of its plans to revitalise the nation’s railways, the government has  privatise the Tanzanian Railway Corporation (TRC). Under the privatisation plan, the government HAS  grant concession to private sector companies, who WHERE  expected to provide train service and maintain the infrastructure.

However the government could go a lot further by separating the railway operations in to two broad categories – railway infrastructure and train operations, and form a railways regulatory body which regulate activities in the railways sector. Also proceeds from the privatisation process should be put into a National Railway Fund which will be used to finance railway projects.

Railway Infrastructure Company (RIC)

The ownership and maintenance of the national railway infrastructure will be transferred to a newly established special purpose vehicle (SPV) which will be partially owned by the  Government and private investors. The initial lifespan of the SPV will be for thirty years with the purpose of updating and maintaining the national rail network.

The RIC will also be responsible expanding the network around the country and building new rail links as air-rail links which connect the countries airports to the centre of cities they serve, similar to the Paddington Heathrow Express in the UK. It will also be responsible for traffic control and signaling, and the construction of new train stations on the railway network.

The RIC will also take ownership of all the existing train stations and warehouses owned by the TRC in the country, which it could operate itself or lease out to train operating companies, who will also provide passenger and freight train services out of the any of the train stations in their command.

The newly formed RIC will have the following streams of revenue:

• Track Services Fees: These are fees that the company will charge train operators who make use of its tracks for passenger and freight services.

• Station and Warehouse Leases: This includes the revenue accrued by leasing out train stations and warehouses to train operators.

• Government Subsidies: Because of the capital intensive nature of rail track maintenance and new line creations, the Government, through the National Railway Fund, will subsidise some of its operations.  The amount of subsidies given will be based on the performance of the company in the previous year.  The review of subsidies would be done on a yearly basis until the company is at the stage where it does not require government subsidies to run its operations.

The RIC will be subject to regulation from a newly created railway board, which monitor its performance and will pass down fines in areas in which the company has failed to meet standards or agreed milestones.

For the time being, it would be more economical to keep and update Tanzania’s narrow gauge tracks, rather than convert them to the standard gauge tracks. Narrow gauge tracks tend to be slower, carry less load and far less adaptable than the standard gauge tracks.

However narrow gauge tracks involve significantly less civil engineering costs and countries like Japan, Australia, New Zealand and South Africa have shown that with the right calibration and design, it is possible to get almost the same performance of standard gauge tracks out of narrow tracks. 200-car trains operate on the Sishen-Saldanha railroad in South Africa, and Queensland Rail’s tilt train is presently the fastest train in Australia, despite running on narrow gauge tracks.

Train Operating Companies (TOCs)

These will be private sector companies which will operate passenger and/or freight train services on the national rail network. In order to offer train services, potential companies will have to bid for a franchise license from the railways regulatory body, which will grant them a government backed monopoly to operate services on certain routes for a specified duration.

The TOCs will responsible for providing their own rolling stock (locomotives, railroad cars, coaches and wagons). The rolling stock will be have of an agreed standard and quality to avoid train companies from using old and unsafe equipment to ferry passengers.

The TOCs will also agree to lease a number of train stations from the RIC for passenger services and warehouses for freight services. These facilities will be located along the route in which they operate. Under the lease agreement the TOCs will be responsible for the following:

• Maintenance and upgrade of the buildings and land on which the facility is located.

• Security at the facilities.

• Train ticket payment collections.

• Commercial activities at passenger stations, such as the renting of shop spaces.

• Parking fee collection from other TOCs who might decide to park their own trains at the station overnight.

Railway Services Companies (RSCs)

The services units of the TRC which provide direct services to the railway industry will be sold to private companies. The benefit of selling the units is to aid them focus on their core business and improve the efficiency of the services they provide.

The services units include:

• The workshop services unit: The unit mainly provides maintenance of rolling stocks.

• Printing press: This unit is responsible for the printing of the all the tickets currently used on the national rail network.

• Catering services: This unit presently provides catering services on the long distance train services.

The proceeds from the sales of these business units will be paid directly into the National Railway Fund.

Railways Regulatory Board

The  Government will establish a new railway regulatory body which will oversee all activities in the Tanzanian railways sector.

The major responsibilities of the body will be to

• Carry out economic, environmental and safety regulation of the railways sector.

• Work cross the borders with Tanzania’s neighbours to ensure harmonisation with the country’s rail network.

• Monitor performance of the RIC and its agreed milestone attainments.

• Negotiate franchise agreements with TOCs and monitor their performances.

• Assist state governments in establishing intra cities mass transit rail networks.

• Investigate major incidents and accidents that occur on the railways.

• Monitor observance of public service obligations

• Conflict resolutions within the rail network system

Intra City Light Rail Systems

While state governments will be responsible for the development and deployment of a light rail system within their states, they would however be able to apply for financial assistance from the National Railway Fund.

Interested state government will submit their proposals to the Fund which will make a determination into the amount of money it plans to contribute towards the project. Every submission will be treated on a case by case basis as to determine the economic viability of the project and its likely social and environmental impact.

Winding up the National Railway Corporation

Once the national rail infrastructure, the train operation and support services have been be taken up by the companies as described earlier, the National Railway Corporation will be wound up as a legal entity and the remaining operational and non–operational assets sold off. The proceeds of the sale will be added to the National Railway Fund.

The rolling stock could be sold to the TOCs or other companies and individuals express an interest in those assets.

The  Government should transfer all the assets held by the Railway Property Company Limited, a subsidiary of the TRC, which manages nearly 200 square metres of non-operational lands and landed properties held by the TRC, to the National Railway Fund, which will either sell or grow these assets.

While it would be desirable to ensure that all members of staff of the TRC be retained or reassigned by the new companies taking over, it is more practical to expect that a only a certain percentage would be rehired as a means of making these companies more efficient.

National Railway Fund (NRF)

The National Railway Fund will be established primarily to provide financial assistance to the railway sector. NRF will be registered as a company limited by guarantee and operate independently of the Railways Regulatory Board and Railways Infrastructure Company.

The Fund will be administered and managed by a Board of Trustees representing various interests in the public and private sector and will be completely isolated from the management of the Railways Regulatory Board and Railways Infrastructure Company.

The Fund will be required to release quarterly reports on the how much of its funds are being spent and how is being spent on any of the operations is it financing.

The NRF will be responsible for:

• Providing subsidies to the RIC to assist it in the maintenance and upgrade of the national railway network.

• Provide financial assistance to state governments looking to develop their own light rail networks.

NRF will be financed by:

• Proceeds from the privatisation process of the TRC.

• A railway tax passed on to passengers and companies who make use of the national railways. The tax will be 5% of the cost of a train ticket or freighting goods by rail.

• Returns on investments made by the management board in the global capital and money market.

• Grants from governments, organised private sector and international donors

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Yona Fares Maro
I.T. Specialist and Digital Security Consultant