Turkish company wins second big contract in Tanzania

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Dar es Salaam, Tanzania
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ISTANBUL, Turkey — Tanzania has awarded a $1.9-billion contract to Turkish railroad contractor Yapi Merkezi for the second-stage of a multi-billion dollar upgrade to the African nation’s rail network. The Istanbul-based firm will be responsible for a 262-mile electrified standard gauge railroad on the outskirts of Dodoma, Tanzania’s capital city.

The design-and-build contract award comes after a $1.2-billion deal for the first stage of the upgrade in February. That contract also went to Yapi Merkezi with a Portuguese partner firm. This 128-mile line, also electrified standard gauge, will run west to east connecting the Port of Dar es Salaam and Morogoro. Key to the upgrading will be the replacement of the country’s colonial-era 3-foot three-and-three-eighths-inch narrow gauge line between Dar es Salaam and Dodoma with a standard gauge railroad.

The contract was put out to tender by the railroad infrastructure manager Reli Assets Holding Company. Yapi Merkezi beat off 14 rivals for the contract.

Freight moved long distance from the dockside at Dar es Salaam will reach consumers at lower prices according to a news release. The line is scheduled for completion by 2020.

On completion of the second stage, the rail line will be about halfway to its link-up on Tanzania’s border with Burundi with other East African railroads that are also undergoing upgrades. Reli Assets has ambitions to award three further tenders for around 435 miles of railroad line over the next few months. By 2022, Dodoma is set to invest about $14 billion to build a 1,600-mile standard gauge, electrified network in the country.

See the original article online.
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