President Samia Suluhu Hassan has announced that electric trains will significantly stimulate economic activities across various sectors in Tanzania.
Speaking during the official launch of the Standard Gauge Railway (SGR) electric train between Dar es Salaam and Dodoma, President Hassan emphasized the transformative potential of the new railway system.
The President highlighted that the electric trains would particularly benefit industries, agriculture, livestock keeping, tourism, and trade. She expressed optimism that the industrial sector would see substantial growth across different regions due to the reliability and efficiency of the new transport system.
Addressing the issue of inadequate transport infrastructure, President Hassan pointed out that its deterioration leads to a loss of economic output by two percent and inflates transportation costs by 40 percent. This trend, she noted, hinders investment and raises business expenses.
The new railway, stretching approximately 540 kilometers, will reduce travel time between Dar es Salaam and Dodoma from nine hours to an average of three and a half hours, a 60 percent reduction. This improvement is expected to facilitate trade and social activities between the two major cities by expanding transport options for passengers.
President Hassan outlined the various travel options now available, including electric trains, buses, and planes. She also highlighted the business opportunities for the private sector to partner with the Tanzania Railways Corporation (TRC) in offering combined ticketing options that integrate train and bus travel.
Furthermore, the President noted that the railway would alleviate vehicle congestion, reduce road accidents, and enhance parcel transportation efficiency. Most importantly, it would significantly decrease environmental pollution due to its reliance on electricity, which emits less carbon compared to vehicles using hydrocarbons.
The SGR project, with an estimated cost of $10 billion (equivalent to Sh23.3 trillion), is expected to be completed within budget. President Hassan urged the public to protect and preserve the infrastructure and called on the TRC board of directors to oversee the project with the highest professionalism and integrity to ensure profitability.
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The President also directed the treasurer to introduce performance criteria (KPIs) for the TRC board of directors and management. She announced that 1,430 wagons were expected to arrive in the next three months, facilitating the commencement of cargo transportation and tying the railway to other economic sectors.
President Hassan acknowledged the contributions of her predecessors, including former Presidents Benjamin Mkapa, Jakaya Kikwete, and John Magufuli, in the development and implementation of the project. She reiterated her commitment to ensuring the completion of projects approved by the fifth phase government according to the required standards and quality.
The government is in the final stages of negotiations to revitalize the Tanzania and Zambia Railway Authority (Tazara) railway and plans to improve the existing meter-gauge railway network.
With the launch of the electric trains, Tanzania is set to experience significant advancements in transport infrastructure, promising economic growth and development across various sectors.