A South Korea-based company, Hyundai Rotem has secured contracts worth $295.65m from Tanzania Railways Corporation (TRC) to deliver eco-friendly train cars.
TRC will receive 80 train cars worth $190.12m and 17 electric locomotives worth $105.53m from Hyundai Rotem, which are expected to be delivered by 2024.
As part of the Standard Gauge Railway (SGR) line project which will connect to Rwanda, the new train cars will operate on a 546km high-speed electric line spanning between Dar es Salaam and Makutupora.
Tanzania has invested around $7bn in the SGR project and expected to work on a 673km range which will connect Makutupora, Tabora, Isaka and Mwanza
The SGR project is a regional project which is also expected to connect Rwanda, Burundi and DR Congo to boost regional trade and business amongst the member states.
Rwanda is still waiting for the project to reach Isaka (dry port) side to kick start its construction activities that will connect the Rwandan capital Kigali, a move in which government in June 2021 reassured Tanzania of speedy execution of the projects.
Sources within the ministry of infrastructure indicate that the SGR project is still under discussion on investments needed but Rwanda is expected to invest more than $1.3billion to connect 521km from Isaka to Kigali.
Hyundai Rotem is an affiliate of Hyundai Motor Group, which has Hyundai Motor and Kia under its business control.