$300 million US dollars has been approved by the World Bank for Tanzania to improve the East African central corridor and boost trade with landlocked neighbouring countries.

According to the World Bank, the funds will be used to create a reliable open access railway infrastructure on the Dar es Salaam-Isaka section and to strengthen the countries rail agencies’ ability to manage the infrastructure, the traffic operations and the network regulation.

Philippe Dongier, the World Bank’s country director for Tanzania says, “The location and the size of Tanzania, its mineral and agricultural resources, its tourism potential and its critical role as a transport hub for its landlocked neighbors, provide unrivaled opportunities for the development of modern transport infrastructure and services.”

“We are excited to support the government’s efforts to rebuild its rail and intermodal transport system.”

The funds will go to relaying rail tracks, building new intermodal terminals, repairing or reconstructing bridges and supporting the institutional transformation of the sector. This project is a necessary first step to the eventual upgrade and expansion of the broader central corridor transport network.

Poor infrastructure on the East African central corridor creates delays and high costs for transport of goods between Tanzania and its landlocked neighbors of Rwanda, Burundi, Uganda and the Democratic Republic of Congo.

Tanzania’s Dar es Salaam port is used as an export and import gateway for the landlocked countries of Rwanda, Burundi, Uganda, Zambia, Malawi and the Democratic Republic Congo.