In 2007
RITES Ltd of
India won a contract from the Parastatal Sector Reform Commission (PSRC) to operate passenger and freight trains on a concession basis for 25 years. The concession agreement was signed on 3 September 2007, to begin on 1 October 2007. The railway will be run as Tanzania Railway Ltd, with the government owning a 49% stake. There were moves to abandon the contract
"due in part, to the fact that the Indian investor failed to pay over USD 6 million in concession fees to the Tanzania government in 2008" but RITES officials countered noting that the contract
"misled Rites officials by indicating that the Railway Assets Holding Company (Rahco) was in possession of 92 working locomotives when, in actuality, only 55 existed". In 2010, the government terminated the contract and resumed control. In 2007 the Deputy Minister for Infrastructure
Maua Abeid Daftari proposed
conversion to
standard gauge.
Sleepers In 2008 tenders were sought for -gauge steel
sleepers convertible to gauge and for concrete sleeper plant for dual and gauges. ==See also==