SGR project to boost domestic connectivity, facilitate trade with landlocked African state

By Emmanuel Onyango , The Guardian
Published at 02:48 PM Nov 18 2024
SGR
File photo
SGR

THE government launched its electric Standard Gauge Railway (SGR) three months ago, aiming to expand its transportation network and facilitate trade among African nations.

The modern train, equipped with cutting-edge signaling technology, is East Africa's first electric railway within the East African Community (EAC) member states.

The launching event was witnessed by President Samia Suluhu Hassan who graced the occasion as a guest of honour at a grand ceremony which was held at the main railway station in the country’s capital city—Dodoma.

Now the modern passenger train plies along a completed two phases which is almost half of the whole SGR’s entire routes from Dar es Salaam city to Mwanza city on the shores of Lake Victoria, covering a total stretch of 1,457 kilometers.

The completed section involves two slots out of five earlier slated within the designated main route from Dar es Salaam to the capital city—Dodoma which covers a stretch of 722 kilometers. The passenger train transports about 1,500 passengers on daily basis along the line.

Apart from these five slots, there is another extension line which has been will run from Tabora to Kigoma Region on the northeastern shores of Lake Tanganyika covering a stretch of 506 kilometers.

Both lines are designed to offer a modern, efficient, and reliable alternative for passenger and freight transport as they replace the aging old meter-gauge of the central railway line running alongside.

The electric train, a project worth nearly 14trn/- ($ 6.5 billion) on its completion is seen as an immense boost to domestic connectivity, trade and economic opportunities aiming to connect Tanzania with neighbouring landlocked countries such as Uganda, Rwanda, Burundi and Democratic Republic of Congo (DRC). 

Tanzania Railways Corporation's Director General Masanja Kadogosa emphasized the SGR’s role in driving economic growth and improving transport efficiency across Tanzania and beyond. 

The project is set to facilitate faster, more reliable transportation for both raw materials and finished goods, which can reduce logistical barriers for Tanzanian businesses trading across the region.

In addition to enhancing trade and reducing travel costs and time, the train is poised to improve access to social services, increase exports, and boost tourism. It will also create direct and indirect employment to Tanzanians; attract more local and foreign investment as well as uplifting Tanzanians' quality of life.

The environmental impact of SGR is significant as well; experts estimate it will reduce carbon dioxide emissions by approximately 80,000 tonnes annually, contributing to Tanzania’s climate change mitigation goals.

However, the SGR project faces challenges that could hinder smooth operation if not addressed. Experts warn that insufficient technical knowledge may affect the reliability of the electric trains. To counter this, the Ministry of Transport is encouraging private sector partnerships.

The Director General highlighted the importance of collaborative maintenance under the Railways Open Access Regulations Act 2024, which permits public-private partnerships for both passenger and freight services. 

These regulations were published in the government gazette in March 2024 and are designed to foster sustainable, long-term management of the railway.

Several Tanzanian companies, including GSM Group, Bakhresa Group, Mohammed Enterprises Company Ltd., Lake Oil, Azam, and Jambo, have expressed interest in partnering with the government to operate and maintain the electric SGR. 

Additionally, companies from China and Europe are exploring investment opportunities. Jambo, notably, plans to invest in luxury services for tourists.

Permanent Secretary in the Ministry of Works, Prof Godius Kahyarara, recently announced that the government has allocated 54.4bn/- to acquire 264 cargo wagons which are expected to arrive in the country in few months to come. 

The World Food Programme has also donated eight cargo wagons to assist in transporting fruits and vegetables.

Under the Railways Open Access Regulations 2024, companies interested in independent railway operations must meet application requirements and pay maintenance charges. Once approved, infrastructure managers and operators will gain transit rights, allowing them to utilize various railway lines for their services.

The SGR project, initiated in 2017, follows Kenya’s SGR model, launched the same year and connecting Mombasa to Nairobi using diesel engines. Yapi Merkezi’s Project Manager, M. Firat Aygen, lauded Tanzania’s SGR as a transformative step toward a comprehensive transportation revolution in East Africa.