Lawmakers question economic returns from Tanzania’s rail investments

The MPs noted that Tanzania has invested heavily in railway infrastructure, including about 2,561 kilometres of the Standard Gauge Railway (SGR), 2,707 kilometres of the Meter Gauge Railway (MGR), and the 1,860.5-kilometre Tazara line. However, they said the country has not yet fully maximised the network’s potential, particularly in freight movement.

“Despite the existence of this railway network, the nation has not been able to maximise its benefits, especially in cargo transportation,” Mr Ndaki told Parliament on behalf of the committee.

The lawmakers identified several constraints, including inefficiencies in freight services operated by the Tanzania Railways Corporation (TRC), limited investment in locomotives, wagons and cargo-handling equipment, and a continued emphasis on passenger transport over freight services.

They also pointed to delays in completing some sections of the SGR, attributing them to financing constraints and delayed disbursement of funds from the Railway Fund.

According to the committee, rail transport remains central to economic development due to its capacity to move large volumes of cargo at lower cost compared with road transport. MPs urged the government to address operational and investment bottlenecks to maximise returns from the country’s substantial rail investments.

The committee further called for increased private sector participation in railway development and operations, saying public-private partnerships could help accelerate investment and improve efficiency in the sector.

Lawmakers also urged the government to fast-track plans for the proposed Southern Railway Corridor linking the Port of Mtwara to Mbamba Bay, with branches to Liganga and Mchuchuma, in line with the objectives of Vision 2050. They said the project could unlock mineral resources, spur industrialisation and strengthen regional trade.