Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Construction of a standard gauge railway (SGR) along the Central Corridor connecting Dar es Salaam (Tanzania) to Kigali (Rwanda) via Isaka, with extensions to Gitega-Musongati (Burundi) and eastern Democratic Republic of Congo, establishing an efficient rail transport backbone for the region.
Objectives
Develop a modern standard gauge railway along the Central Corridor to enhance regional connectivity and reduce transportation costs; provide landlocked countries (Rwanda, Burundi, and eastern DRC) with efficient and reliable access to the port of Dar es Salaam; stimulate economic development along the corridor through improved logistics and market access; enhance competitiveness of regional exports through reduced transport costs.
Strategic Importance
The Central Corridor SGR represents a transformative infrastructure project for East Africa, creating an efficient transport backbone connecting coastal Tanzania with Rwanda, Burundi, and eastern DRC. The railway will drastically reduce logistics costs for landlocked countries (currently among the highest in the world), enabling greater competitiveness for regional exports and reducing import costs for consumers and businesses.
Technical Specifications
Technology & Design
The railway employs standard gauge (1,435mm) technology with diesel traction initially and provision for future electrification. Design features include modern signaling and train control systems, significant structures (bridges and tunnels) to navigate challenging terrain, intermodal terminals at key locations, and advanced communications systems.
Capacity & Size
The railway network will extend approximately 2,100 km across four countries: Tanzania section (Dar es Salaam-Isaka): 1,000 km; Rwanda section (Isaka-Kigali): 400 km; Burundi section (Isaka-Gitega): 350 km; DRC extensions: 350 km. Design capacity includes freight operations of up to 35 million tons annually and passenger capacity of 3 million journeys per year.
Technical Details
Standard gauge railway (1,435mm) with axle load capacity of 25 tons; Maximum gradient of 1.8% at critical sections; Minimum curve radius of 800m on main lines; Diesel traction initially with provision for future electrification; Operating speed of 120 km/h for passenger services and 80 km/h for freight; Modern signaling and train control systems with centralized traffic control
Development, Implementation & Financial Details
Development Timeline
Tanzania section (Dar es Salaam-Isaka): Construction 2017-2024, operational from 2024; Rwanda section (Isaka-Kigali): Financing secured 2023, construction 2024-2028; Burundi and DRC extensions: Financing arrangements 2024-2026, construction 2026-2035
Latest Implementation Updates
UPDATED2025-01-23 — Daily News TZ: TRC announces major SGR expansion plan Dar es Salaam–Tanga–Moshi–Arusha–Musoma (target 2028) to strengthen northern freight flows. [https://dailynews.co.tz/sgr-expansion-to-boost-connectivity-in-northern-zone/]
2025-06-28 — Central Corridor TTFA: **official launch of SGR freight** service (Pugu, Dar es Salaam ↔ Ihumwa, Dodoma) on 27 June 2025—milestone for corridor logistics. [https://centralcorridor-ttfa.org/tanzania-launches-sgr-cargo-services/]
2025-06-29 — Xinhua: TRC commences electric freight operations Dar es Salaam–Dodoma, integrating port–hinterland cargo flows. [https://english.news.cn/africa/20250629/403f280acc37480d80f46c4a22c102df/c.html]
2025-06-30 — Ecofin Agency: first SGR cargo run (≈700 t) underscores trade facilitation aims and regional connectivity. [https://www.ecofinagency.com/news-services/3006-47484-tanzania-launches-sgr-freight-rail-service-to-boost-regional-trade]
2025-07-01 — The Guardian TZ: first cargo train (10 wagons, ~700 t) arrives at Ihumwa Station—operational ramp-up underway. [https://www.ippmedia.com/the-guardian/news/local-news/read/trc-begins-sgr-freight-service-with-700-tonnes-2025-07-01-104451]
2025-06-13 — Government update: first two SGR segments (Dar es Salaam–Morogoro; Morogoro–Makutupora) in service by March 2025 with >2m passengers; freight trials on Mwanza–Isaka and construction progress on interior lots. Link: https://allafrica.com/stories/202506130188.html
Financing Structure
The project utilizes a phased sovereign financing approach with: multilateral development bank financing (AfDB, World Bank); bilateral financing from China, Turkey, and other partners; national budget allocations from participating countries; and potential for PPP arrangements for operations and certain segments.
Capital Structure
Base infrastructure (80%): Sovereign financing through loans and national budget allocations; Operations and rolling stock (20%): Potential for private sector participation through concession arrangements
Project Timeline
Start Date
April 2017
Expected Completion
December 2035
Development Timeline
Tanzania section (Dar es Salaam-Isaka): Construction 2017-2024, operational from 2024; Rwanda section (Isaka-Kigali): Financing secured 2023, construction 2024-2028; Burundi and DRC extensions: Financing arrangements 2024-2026, construction 2026-2035
Project Status History
Status 2020
Feasibility
Status 2022
Transaction Support
Status 2024
Financial Close
Additional Project Details
Preparation Funding Gap
USD 0.00M
Construction Timeline
Tanzania section (Dar es Salaam-Isaka): 2017-2024; Rwanda section (Isaka-Kigali): 2024-2028; Burundi section (Isaka-Gitega): 2026-2032; DRC extensions: 2028-2035
Legal & Financial Advisors
CPCS Transcom providing transaction advisory services; legal advisory services by Bowmans and Trinity International LLP
Market Analysis
Market Analysis
The Central Corridor currently handles approximately 8 million tons of freight annually, primarily via road transport with high costs and reliability challenges. Detailed O-D studies indicate potential rail freight demand of 13 million tons by 2030 and 25 million tons by 2045.
Market Demand
The railway is designed to handle up to 35 million tons of freight annually when fully developed. Initial operational capacity will be 10 million tons, with phased expansion as demand grows. Passenger services will accommodate approximately 3 million journeys annually, serving major population centers along the corridor.
Key Stakeholders
Project Sponsor
Tanzania Railways Corporation, Rwanda Transport Development Agency, East African Community
Key Parties
Tanzania Railways Corporation, Rwanda Transport Development Agency, Burundi Ministry of Transport, DRC Ministry of Transport, East African Community Secretariat, Central Corridor Transit Transport Facilitation Agency (CCTTFA)
Investors
Export-Import Bank of China, Turkish Exim Bank, African Development Bank, Trade & Development Bank, World Bank, Development Bank of Southern Africa
Contractors & Operators
Turkish Yapi Merkezi and Chinese Railway Construction Corporation (CRCC) for the Tanzanian section; other segments pending procurement
Risk Assessment
General Risk Assessment
Key risks include: financing challenges for segments beyond Tanzania; cross-border coordination requirements; technical implementation in challenging terrain; varying implementation capacities across countries; and potential traffic demand uncertainties. Risk mitigation strategies include phased implementation approach, structured coordination mechanisms through the EAC and CCTTFA.
Regulatory Risks
Requires harmonization of railway regulations, customs procedures, and technical standards across four countries. The EAC framework provides a foundation for regulatory harmonization, but risks remain regarding consistent implementation and enforcement, particularly for the DRC sections which fall outside the EAC framework.
Impact Assessment
Environmental Impact
The project requires comprehensive Environmental and Social Impact Assessments for all segments. Key environmental considerations include habitat fragmentation, watershed protection, materials management during construction, and noise/vibration mitigation in populated areas. Environmental management plans incorporate reforestation, erosion control, and wildlife crossing provisions.
Social Impact
The railway project is expected to generate over 50,000 direct jobs during construction and 10,000 permanent jobs during operation. Socioeconomic benefits include reduced transport costs (50-60% compared to road), improved market access, enhanced trade opportunities, industrial development along the corridor, and reduced isolation for landlocked countries.
Investment Opportunities
Private Sector Opportunities
Significant opportunities exist for private sector participation in railway operations and maintenance, rolling stock provision and maintenance, logistics facilities development, station commercial development, and digital systems implementation. The operational framework being developed will provide specific structures for private participation while ensuring public interest objectives.
Next Steps & Agreements
Next Steps
Complete Tanzania section (Dar es Salaam-Isaka); finalize financing arrangements for Rwanda and Burundi segments; secure funding commitments for DRC extensions; establish corridor management framework; advance capacity building for railway operations
Offtake Agreements
Inter-governmental agreements between the four participating countries establish operational frameworks, track access arrangements, and cross-border procedures. For operations, performance-based concession agreements will define service level requirements, maintenance standards, and key performance indicators.
Contact Information
Eng. Masanja Kadogosa, Director General, Tanzania Railways Corporation, Email: info@trc.co.tz; Mr. Janvier Mutabazi, Director, Transport Infrastructure, Rwanda Transport Development Agency, Email: info@rtda.gov.rw
