EU, Zambia Railways in Advanced Talks on €50M Grant

Zambia Railways Limited (ZRL) has announced that talks with the European Union (EU) regarding a €50 million grant for the rehabilitation of railway infrastructure are now at an advanced stage.

Once finalized, the EU grant will assist Zambia Railways Limited in rehabilitating its track, signaling and telecommunications systems, focusing on critical sections of the mainline, in line with Phase 1 of the the ZRL Strategic Business Plan (SBP) 2024 – 2028, thereby enabling increased freight volumes, reduced logistics costs, and enhanced private sector investment.

According to a statement issued by ZRA Manager-Public Relations, Sombe Longwani, if phase 1 is successfully implemented, a 2nd Phase could follow in which the ZRL track, including branch and inter-mine lines will be fully renewed and upgraded, bringing it back to its design speed of 70 km/h and increasing the axle load from 18.5 tons to 22 tons.

Speaking during an update meeting between ZRL and EU in Lusaka, Zambia Railways Limited Managing Director Eng. Cuthbert Malindi, said this move aims to enhance the operability and efficiency of the railway line, as well as the regulatory and business environment of the railway sector in Zambia.

Eng. Malindi noted that the development will ensure that freight movement by rail becomes competitive to promote mode shift from road transport, in line with the Zambia 8th National Development Plan 2022-2026, the National Transport Policy 2019-2028 and the ZRL Strategic Business Plan.

“The development signals renewed momentum in ZRL’s strategic turnaround agenda, with track rehabilitation identified as a critical pillar in enhancing operational efficiency, safety, and competitiveness,” Eng. Malindi stated.

He added that once finalized before the end of the year ,the grant is expected to significantly accelerate ZRL’s turnaround efforts, and play a role in the improvement of the railway infrastructure, one of the four critical success factors, others being Rolling stock availability, sustainable funding and operational efficiency.

Eng. Malindi noted that the EU’s commitment underscores the importance of railway transport to Zambia’s economic development.

“We are elated by the positive and advanced discussions with the European Union so far. The rehabilitation works, will cover critical sections of the railway line that have for years hampered train speeds and operational efficiency. Government’s continued support to this project is commended.”

“By undertaking this project, we aim to start restoring the reliability and safety of our railway services, thereby reinforcing our commitment to excellence and meeting the expectations of our customers and stakeholders,” he added.

Meanwhile EU Head of Cooperation Claudio Bacigalupi disclosed that significant progress has been made to secure the grant earmarked for repair of ZRL’s railway infrastructure.

Mr. Bacigalugi commended the Zambian Government for its steadfast support and commitment to revitalizing the railway sector as a driver of economic transformation and regional integration.