Tanzania Standard Gauge Railway (SGR)

As of this month, the Tanzanian government has invested 23 trillion in Standard Gauge Railway (SGR) construction, with the goal of making the country’s rail infrastructure a regional hub.

To cater to the growing economies in the landlocked central part of Africa, Tanzania also seeks to collect revenue from its railway network by upgrading existing, dilapidated railways and rehabilitating its meter-gauge railway along its long coastline.

Masanja Kadogosa, director general of the TRC, said the aim of the electrified standard gauge railway is to establish an international route linking western branches that diverge at Isaka with Tanzania’s eastern port city of Dar es Salaam via the country’s interior.

In addition to supporting the county’s economic prosperity, he stated, their purpose is to transport people and products where they need to go.

When shipping a huge volume of freight, rail offers cheaper fuel costs than road transport. Moreover, rail often has lower costs for drop trailer programs as well as lower costs related to drivers.

According to Kadogosa, the SGR will connect Tanzania to its neighbors Rwanda, Burundi, and the DRC from the port of Dar es Salaam on the Indian Ocean to Mwanza port on the shores of Lake Victoria in northern Tanzania.

President Dr. Samia Suluhu Hassan prioritized the SGR project, whose first and second phases of railway infrastructure construction had already begun when she took office.

Other stages of construction, including the sections from Makutopora to Tabora (294 km), Tabora to Isaka (130 km), and Tabora to Kigoma (506 km), are currently under construction.

The Tanzania Intermodal and Rail Development Project (TIRP) and the SGR both aim at improving the rail network for regional and international economic integration.

The government is implementing the TIRP project, a $300 million initiative funded by the World Bank (WB), through the Tanzania Railway Corporation (TRC).

The project’s objectives include strengthening logistics at the port of Dar es Salaam and the rail terminals, increasing the reliability of the rail infrastructure, and strengthening train operations.

The project was a part of the government’s attempt to establish a reliable open-access rail network on the Dar es Salaam-Isaka segment of the East African Central Corridor and also to strengthen the country’s rail agencies’ capacity to oversee network regulation, traffic operations, and infrastructure management.

Others supported the sector’s institutional development by relaying rail lines, constructing new intermodal terminals, restoring or reconstructing bridges, and establishing new intermodal terminals.

President Samia said that Tanzania’s investment in the SGR has now reached $10.04 billion, including the latest contract, after witnessing the signing of the contract for the Tabora-Kigoma section between the TRC and Chinese firms last year.

Once fully operational, she said the new railway will reduce cargo transportation costs from a minimum of $6,000 per tonne between the Dar es Salaam port and the DRC to roughly $4,000 per tonne.

To connect with the regional rail network needed for competitiveness and global area integration, Tanzania requires 20,000 kilometers of the railway network.

Tanzania’s railway system currently consists of two networks, one connecting it to Zambia and the other to Kenya and Uganda in East Africa.

Reported on February 10, 2023

Tanzania Standard Gauge Railway (SGR)

The construction of the 4th phase of Tanzania’s Standard Gauge Railway Tabora –Isaka section, was launched recently by the Turkish firm Yapi Merkezi. This comes following the completion of the first, second, and third phases of the Dar Salaam-Mwanza Railway in Tanzania. The 3rd phase was completed in December 2021.

The Dar Salaam-Mwanza Railway in Tanzania will be the longest railway line in East Africa to be constructed by the Yapi Merkezi. The project is predicted to be finished in 4 years. It is located in the Shinyaga region and stretches for 165km section.

Yapi Merkezi has also constructed 3 stations between the cities of Tabora and Isaka, maintenance of a workshop, depot area, an administrative building, a railway institute, signaling, telecommunications, construction of a 165 km long single-track railway, and electrification work.

Project Overview

The Tanzania Standard Gauge Railway (SGR) is a railway system, under construction, linking the country to the neighboring countries of Rwanda and Uganda, and through these two, to Burundi and the Democratic Republic of the Congo.

The new Tanzania SGR is intended to replace the old, inefficient meter-gauge railway system and reduce road congestion. It is also expected to decrease freight costs by 40%. Each freight train is expected to transport up to 10,000 tonnes, equivalent to 500 lorry loads.

The project is being implemented in 5 phases: 202km Phase 1 (Dar es Salaam–Morogoro) Section, 348km Phase 2 (Morogoro–Makutopora) Section, 294km Phase 3 (Makutopora–Tabora) Section; 130km Phase 4 (Tabora-Isaka) Section, and 341km Phase 5 (Isaka–Mwanza) Section.

Also Read: Standard Gauge Railway (SGR Kenya) project timeline and all you need to know

Timeline

Sep 2016

Tanzanian set to pick a contractor for the standard gauge railway line

Tanzania’s Ministry of Works, Transport and Communication has said that it was in the process of procuring a contractor for the construction of the standard gauge railway line run from Dar es Salaam to Kigoma and Mwanza.

The construction of the standard gauge railway line is set to cost the country at least US$7.6 billion.

Tanzania’s Transport permanent secretary Leonard Chamuriho said that all the logistics have been done as they already found funds for the same. This comes just weeks after Tanzania signed a $7.6 billion loan agreement with the Exim Bank of China for upgrading the railway line.

“We are currently in the process of getting the very best competitive contractor who can carry out the project and once we complete we will ensure that we announce it to the media” he added.

He also added that the railway is expected to boost the country’s transport sector which in the past has been lagging behind.

“We will ensure that the project is completed on time once we finish up with getting the very best contractor” he added.

President John Magufuli is on record as having been quoted saying that the construction will commence within the current financial year (2016/2017), with the government setting aside Sh1 trillion in the current financial year as the initial cost of the project.

“As soon as we announce the procurement of a contractor we expect to continue with evaluation and other procedures related to the project,” he said. The project involves the construction of a 2,190-km railway line and is expected to be a catalyst for speeding up development in the country.

Once the project is completed its expect to uplift the face of Tanzania’s transport sector and improve trade.

2017

The 202km Phase 1 (Dar es Salaam–Morogoro) Section was contracted to a 50/50 consortium of Yapi Merkezi of Turkey and Mota-Engil of Portugal. Construction began in April.

Oct 2017

Tanzania to launch US$1.2bn SGR second phase

The government of Tanzania has plans to launch the second phase of the construction of the standard gauge railway (SGR) line. The project intends to link the commercial city of Dar es Salaam and the capital of Dodoma.

Speaking during the Eighth East and Central Africa Roads and Rail Infrastructure Summit opening in Dar es Salaam Prof Makame Mbarawa, the Minister for Works, Transport and Communications did confirm the construction will commence next month.

Phase II of the standard gauge railway stretches from Morogoro to Dodoma, a distance of 336 km. Additionally, once the project is complete, Tanzania has plans to introduce a fast and modern train. The train has a capacity speed of 160kph. On the other side, the freight train will have a top speed of 120kph.

Also read: Turkish construction giant eyes more Africa projects after Ethiopia, Tanzania railways

“We expect to see this railway line link Tanzania with other regional, landlocked states including Rwanda, Burundi, DR Congo, Zambia, and Uganda through quick and timely access from Tanzania’s Indian Ocean ports,” said Prof Mbarawa

Project financial support

However, Tanzania is still seeking financial support for the US$1.2bn project. In April this year, President John Magufuli launched phase I of the SGR project. The president did approach the World Bank and the government of South Africa for support.

The SGR project is under the execution of Yapi Merkez Insaat Ve Sanayi, a Turkish construction together with Mota-Engil, Engenharie, and Construcao Africa, SA of Portugal.

Dr. Magufuli had asked President Jacob Zuma of South Africa to help Tanzania in lobbying for loans from the BRICS-run New Development Bank which South Africa is a member. He also requested the World Bank president, Dr. Jim Yong Kim to help in financing the project. Both President Zuma and Mr. Jim Yong did visit Tanzania this year.

Also read: Uganda and Tanzania to construct electric railway lines

Stretching 1,057km from Dar es Salaam to the shores of Lake Victoria, the construction is on the same line as the Central Railway (CR) Line built. The Germans did construct the CR in 1905 from Dar es Salaam to Kigoma. Also, the British colonial government did take over from Tabora to Mwanza a stretch of 427km.

In its plans to revive rail transport through the SGR, the government is consulting the parliament seeking to form the Tanzania Railway Corporation (TRC) that will replace the Reli Assets Holding Company (Rahco) and Tanzania Railway Ltd (TRL).

Sep 2018

Tanzania secures US $1.46bn loan for SGR

Tanzania has secured a US $1.46bn concessional loan from the Standard Chartered Bank Group to fund its Morogoro-Dodoma standard gauge railway (SGR). According to Dr. Philip Mpango, Finance Minister the new loan is part of an agreement reached with Standard Chartered Bank Group Executive Director Bill Winters in Dar es Salaam, which will go to fund the 430 km line between Morogoro and Makutupora.

The government has so far allocated US $700m for its SGR projects in the 2018/2019 annual budget.

“We are still seeking more funds from other partners to fund the remaining sections that will see us extend the line to the Rwandan border,” said Dr. Mpango.

The Stanchart loan means that the government has secured more than 75% funding for the US $1.9bn project, which it awarded a joint venture of Portuguese and Turkish firms, Mota Engil and Yapi Merkezi respectively. It is also understood that it will be issuing the last contract for the third phase of the project this year, and the other two contracts to be announced in the first quarter of 2019.

Feb 2019

Construction of Dar-Moro Standard Gauge Railway in Tanzania at 46%

Construction of the Standard Gauge Railway (SGR) project from Dar es Salaam to Morogoro has reached 42%. This is according to Tanzania Railways Corporation (TRC). TRC Executive Director, Mr. Masanja Kadogosa said that they have done a lot of underground work and that the main work left was the installation of railway sleepers and fibers.

“So far the construction progress is on the right track. We are optimistic that we are going to finalize the Dar-Morogoro section within the next 10 months,” said Kadogosa.

Dar-Moro SGR

Tanzania signed an agreement with Turkish and Portuguese firms to construct the Dar es Salaam- Morogoro stretch at US $1bn, which is expected to be completed by November 1, this year.

The construction of the project is divided into four phases and put out separate tenders to design it. The three remaining sections are Makutupora-Tabora (294km), Tabora-Isaka (133km), and Isaka-Mwanza (248km).

The country plans to spend US $14.2bn over the next five years to build the 2,561 kilometre-SGR connecting its main port of Dar es Salaam to land-locked neighbors including the Democratic Republic of Congo, Rwanda, and Uganda.

In July 2016, China, through its Exim Bank, agreed to advance Tanzania US $7.9m for the railway project, despite its key contracting firms having been omitted from the project.

The project will contribute positively to Tanzania’s future development to meet the increasing demand for the transportation of passengers and improve the domestic supply network.

In May 2019, it was announced that the section was 60% complete and that the first passenger trains are expected to start service in December.

Jul 2019

Phase 1 of Tanzania’s Standard Gauge Railway to begin operation

Phase one of the standard gauge railway (SGR) between the business capital Dar es Salaam and Morogoro Tanzania is set to commence operations soon. Isack Kamwele, Minister for Works, Transport and Communication confirmed the reports and said that the procurement process for wagons and locomotive engines has been completed paving way for operations.

“We have already set some funds to purchase the engines and also begun procurement of 1,430 cargo wagons, 20 locomotives, 60 passenger carriages, and five sets of multiple trains,” said Mr. Kamwele.

“We are going to start conducting the first trials of these speed trains in July to cover part of the 300km. Once this is done, and we are finished with the final works in the third quarter, then we should start seeing operations by December,” he added.

The tests will be the first for the ambitious project that Dar es Salaam has been pushing since April 2017. In operation, the trains are expected to reach speeds of 160 kilometers per hour.

Kamwele directed the Tanzania Railways Corporation (TRC) authorities to ensure some local sub-contractors were paid on time to speed up the construction process and avoid corruption within the SGR project.

“The contractor of the SGR project is so far doing a good job, unfortunately, I have been receiving some complaints from sub-contractors that the contractor was delaying paying them,” said the Transport Minister.

China to finance part of Tanzania’s SGR Project

Tanzania’s standard gauge railway project is set to receive funding from China. This is according to Foreign Affairs Minister Palamagamba Kabudi.

“The Chinese government has declared its intention to support the SGR construction at a later stage, and is now doing its own evaluation of the project before engaging us in further talks,”  said Prof Kabudi.

China’s Exim Bank proposal to fund the project was earlier rejected in favor of a Turkish-Portuguese consortium. After that deal failed, Tanzania declared that it would pay for the project out of its own pocket. That has worked for the first two phases of the project, Dar es Salaam-Morogoro and Morogoro-Makutupora, covering 726km and costing US $2.5bn.

Tanzania will be the third East African country to implement modern railway services after Kenya and Ethiopia which constructed them with the help of the Chinese. Kenya commissioned its SGR passenger services in June 2017, followed by the cargo element in January last year while neighboring Ethiopia has two elements, the 32km trans-city tram line commissioned in January 2017 and the 756km Ethio-Djibouti SGR commissioned in October 2016.

Jun 2020

By June 2020 the work on phase 1 of the project was 82% complete. This section will have six stations: Dar es Salaam, Pugu, Soga, Ruvu, Ngerengere, and Morogoro.

November 2020

Tanzania Prime Minister Kassim Majaliwa announced that phase 1 of the SGR from Dar es Salaam–Morogoro was 90% complete and was on course for completion within the agreed time limits. What remained for the Morogoro SGR station is the installation of electricity transmission lines. According to the PM, the rail service will begin next April.

The modern Morogoro SGR station will be able to handle 800 passengers a day, parking more than 150 cars and motorcycles, while offering auxiliary services. When complete the first phase will halve the traveling time from Dar es Salaam to Morogoro from three hours to one and a half hours.

December 2020

It was announced that the construction of a 220 kV, main power transmission line for the Standard Gauge Railway (SGR) train, Dar es Salaam-Morogoro segment, is almost complete with the project reaching 99%. The transmission line covers a total of 159km from the main Kinyerezi center to the Morogoro Region.

Meanwhile, plans for the second phase project; a 420km power transmission line with 220 kV from Morogoro to Makutupora in the Singida region is on course.

The Tanzania Electric Supply Company Limited (TANESCO) Managing Director, Dr. Tito Mwinuka said during the 50th Tanesco Workers Council convened recently in Morogoro that the SGR, one of the strategic major projects undertaken by the fifth-phase government was progressing well.

January 2021

Tanzania’s foreign minister Prof Palamagamba Kabudi announced that two Chinese companies China Civil Engineering Construction (CCEC) and China Railway Construction Company (CRCC) have won a tender to construct phase 5 of the Tanzania SGR from Isaka to Mwanza. According to the minister, the 341km section will cost US $1.3bn.

Late January 2021

Government spokesperson Dr. Hassan Abbas announced that construction of the first phase from Dar es Salaam to Morogoro is expected to be completed and operational this year after the Government released US $118.2m to the contractors.

According to the spokesperson, the government’s intention is to ensure that the construction is completed on time. “My friends, the stretch from Morogoro to Dar es Salaam will start testing this year,” he said.

March 2021

Construction of the second phase of Tanzania’s SGR 51.9% complete

Construction of the second phase of Tanzania’s standard gauge railway (SGR) from the Morogoro region to Makutupora in the Dodoma region covering 426km is on track. According to Tanzanian Prime Minister Kasim Majaliwa, a report presented to him by Tanzania Railways Corporation (TRC) indicated that construction of the Morogoro-Makutopra section has reached 51.9%.

“I am impressed with the construction pace of the new railway line and I hope it will be completed before February 2022,” said the PM after inspecting SGR’s construction between Igandu and Dodoma stations. He further commended the Tanzania Railways Corporation (TRC) which oversees the construction of the SGR by the Turkish company Yapi Merkezi.

Around this same period, the Tanzania Railways Corporation (TRC) announced it is set to start testing the standard gauge railway (SGR) power systems over three months. The power is run by four sub-stations along the completed 300km stretch between Dar es Salaam and Morogoro. The sub-stations are 50km apart, with 19 transformers.

The test which will be done in two main stages, the unit test and the component test; will ensure that the whole system is well-installed and connected to the national grid whose electricity is supplied by three main sources of power: steam, gas, and hydropower generation.

Jan 2021

Chinese companies CCEC and CRCC to construct phase 5 of Tanzania SGR

Two Chinese companies China Civil Engineering Construction (CCEC) and China Railway Construction Company (CRCC) have won a tender to construct phase 5 of the Tanzania SGR from Isaka to Mwanza. According to Tanzania’s foreign minister Prof Palamagamba Kabudi, the 341km section will cost US $1.3bn.

Also Read: Dar es Salaam-Morogoro SGR Power Line in Tanzania 99% complete

Completion of phase 1

The project is being implemented in phases with the first round covering 202km between Dar es Salaam and Morogoro. In late November, Tanzania Prime Minister Kassim Majaliwa announced that phase 1 of the SGR from Dar es Salaam–Morogoro was 90% complete and was on course for completion within the agreed time limits. What remained for the Morogoro SGR station is the installation of electricity transmission lines. According to the PM, the rail service will begin next April.

The modern Morogoro SGR station will be able to handle 800 passengers a day, parking more than 150 cars and motorcycles, while offering auxiliary services. When complete the first phase will halve the traveling time from Dar es Salaam to Morogoro from three hours to one and a half hours.

In late December, it was announced that the construction of a 220 kV, main power transmission line for the Standard Gauge Railway (SGR) train, Dar es Salaam-Morogoro segment, is almost complete with the project reaching 99%. The transmission line covers a total of 159km from the main Kinyerezi center to the Morogoro Region.

Meanwhile, plans for the second phase project; a 420km power transmission line with 220 kV from Morogoro to Makutupora in the Singida region is on course.

Construction of the first and the second phase is being undertaken by the Turkish construction company, Yapi Markez.

May 2021

The government approved the spending of US $160.5m as a starting budget for the construction of the 341km Standard Gauge Railway (SGR) from Isaka to Mwanza. During the release of the funds at the State House in Dar es Salaam, president Suluhu Hassan directed TRC boss Masanja Kadogosa to properly supervise the implementation of the ongoing railway projects and as well get ready to begin the construction of the SGR line from Makutopora-Tabora, Tabora- Isaka- Kailua- Mpanda and Kalema.

June 2021

The government allocated US $513m to the construction of the SGR in the 2021/22 financial year.

In mid-June, President Samia Suluhu Hassan laid a foundation stone for the construction of the fifth lot of the Standard Gauge Railway (SGR) at Misungwi, Mwanza.

July 2021

Hyundai Rotem secured contracts worth US $295.65m from Tanzania Railways Corporation (TRC) to deliver eco-friendly train cars. TRC would receive 80 train cars worth US $190.12m and 17 electric locomotives worth US $105.53m from Hyundai Rotem, which are expected to be delivered by 2024.

As part of the Standard Gauge Railway (SGR) line project which would connect to Rwanda, the new train cars would operate on a 546km high-speed electric line spanning between Dar es Salaam and Makutupora. Tanzania is set to become the first country in East Africa to have electric trains.

August 2021

CRDB Bank Plc said that it was able, willing, and ready to finance the construction of the next Standard Gauge Railway (SGR) phases if the government agrees. The bank’s managing director, Mr. Abdulmajid Nsekela, said that after participating in the financing of the first and second sections of the project, the lender was willing to do the same for the remaining parts.

CRDB has so far invested over US $107.8m to facilitate the smooth operation of the project through the issuance of guarantees for Yapi Merkez. It has also financed the operations of local sub-contractors and suppliers to ensure that work does not stop.

December 2021

Tanzania Railways Administration signed a close to US$ 2bn agreement with Yapı Merkezi Holding A.Ş for the construction of the 3rd phase of the Tanzania High-Speed ​​​​Railway (SGR) Project.

As per the agreement, the Turkish group company will be responsible for the construction of a 358 km single-track railway line, and a total of 7 stations between the cities of Makutupora and Tabora. It will also install signaling, telecom, and electrification system along the route.

This project is planned to be delivered in 46 months’ time.

Dec 2022

Tanzania’s SGR final phase construction deal signed

The Tabora to Kigoma section of the Tanzania SGR project is to be constructed by two Chinese companies who recently signed a contract with the government to build Tanzania’s SGR final phase. It will make cargo transportation in the country and to neighboring countries less expensive by 2027.

The firm’s China Civil Engineering Construction Corporation (CCECC) and China Railway Construction Company (CRCC) will construct the last 506 km of the railway. The line will link the port of Dar es Salaam to the neighboring landlocked countries of Burundi and DR Congo.

Read also: Tanzania’s Tabora – Kigoma SGR project on the drawing board

After the deal-signing ceremony, President Samia Suluhu said that Tanzania will be in a better position to use its strategic geographical position to promote cross-border trade. The deal, according to President Samia, brought Tanzania’s investment in the SGR to TSh24 trillion ($10.04 billion).

The SGR project’s 506-km final phase, which links Tabora and Kigoma, is anticipated to be ready in 2026, nine years after the project’s inception.