Pre-Feasibility
Project Stage
Project Overview
Development of a standard gauge railway line connecting the Port of Mtwara and the mineral-rich areas of Liganga (iron ore) and Mchuchuma (coal) in southern Tanzania, supporting resource extraction and industrial development.
Key Objectives
Develop railway infrastructure to facilitate extraction and transport of strategic mineral resources (iron ore and coal); provide efficient transport linkage between resource-rich areas and the Port of Mtwara for export; support industrial development in southern Tanzania through improved logistics ...
Strategic Importance
This railway project represents a strategic resource corridor designed to unlock Tanzania's significant iron ore and coal deposits in the southern region. By connecting these resources to the Port of Mtwara, the project creates an efficient export route while supporting industrial development including potential steel production and power generation.
Technical Specifications
Technology: The railway will employ standard gauge (1,435mm) technology with design appropriate for heavy mineral transport, including considerations for axle load, gradient, and curvature.
Capacity: Approximately 700 km of standard gauge railway connecting Mtwara Port, Mbamba Bay, Liganga, and Mchu...
Financing Structure
The project is expected to utilize a resource-backed financing approach with: potential public-private partnership structure linking railway development to mineral extraction rights; sovereign financing through development finance institutions; bilateral financing linked to mining investment; and possible mineral off-taker investment in transport infrastructure.
Market Analysis
The railway will primarily serve the Liganga iron ore deposits (estimated reserves of 1.2 billion tons) and Mchuchuma coal deposits (estimated reserves of 428 million tons). Current transportation constraints make extraction economically unviable, but with railway access, production potential is estimated at 3-5 million tons of iron ore and 2-3 million tons of coal annually.
Investment Opportunities
Significant opportunities exist for private sector participation in integrated mining-railway operations, with potential models including: mining concessions with railway development obligations; BOT arrangements for railway infrastructure; operations and maintenance concessions; and equipment supply and maintenance services.
Key Stakeholders
Sponsor: Tanzania Railways Corporation, Tanzania Ministry of Minerals
Partners: Tanzania Railways Corporation, Tanzania Ministry of Minerals, Tanzania Ports Authority, National Dev...
For More Information, Contact:
Christelle Onana
christellen@auda-nepad.org
Bernard Brian Cudjoe
bernardc@auda-nepad.org
www.au-pida.org