RAHCO, TRL Merger offers new hope for rail project
What you need to know:
A lot has been done over the years to develop the country’s railway infrastructure, and maximise on its economic benefits, but so much remains to do, especially now that we are looking at industrialising.
The move to merge the Reli Assets Holding Company (Rahco) and the Tanzania Railway Limited (TRL) has come at a crucial time.
A lot has been done over the years to develop the country’s railway infrastructure, and maximise on its economic benefits, but so much remains to do, especially now that we are looking at industrialising.
A robust railway infrastructure is no longer an option. This is why it is encouraging to note that efforts are being made to turn the fortunes of TRL – which will be called the Tanzania Railway Corporation (TRC) should the President assents to the Railways Bill 2017.
Members of Parliament passed the bill on Wednesday in a move that could set the pace for the more sustainable transformation of the country’s railway infrastructure. But that was just the beginning. Bigger hurdles lie ahead considering the multi-billion dollar standard gauge railway targeting to connect Tanzania with landlocked neighbours Uganda, Rwanda, Burundi and the DR Congo.
This is a very important project, not just for the country but the region as a whole; yet one that may remain a pipe dream as long as it is business as usual among the caretakers.
There is the lingering challenge of financing. Debating the bill this week, MPs urged the government to give the proposed TRC the green light to source external funds to construct the standard gauge railway.
This will be key to the success of the project. Several stakeholders are said to have pulled out reportedly after questioning project viability. Early this year, lawmakers also warned the project was likely to stall due to lack of financing unless the government considered alternative sources of funds.
The project has already received a shot in the arm after the African Development Bank (AfDB) promised last month that it would chip in. Riding on this, the new project caretakers should hit the ground running and make this a success.
