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The European Union(EU) has granted fifty million euros ( €50 million) to Zambia Railways Limited for track rehabilitation and signalling systems.

Speaking when he made the announcement at Lusaka Railway Station today , European Union Commissioner for International Partnerships Jozef Sikela said the EU railway sector support programme will help Zambia Railways Limited modernize its network, upgrade signalling systems, open access for private operators as well as support reforms to make the rail sector more competitive and transparent.

Mr. Sikela who toured the railway line from Ngwerere to Lusaka Station, said a modern railway system lowers transport costs, reduces congestion and gas emissions.

And speaking at the same event, Minister of Transport and Logistics Hon. Museba Frank Tayali said the investment by the EU is necessary in positioning rail transport as a key player in championing the three(3) million tons annual copper production targets for Zambia by 2031.

Hon. Tayali said an efficient Zambia Railways network will enhance Zambia’s role as a central link in the Lobito Corridor , providing a shorter and more efficient route to the Atlantic Ocean, as well as unlocking new opportunities sectors such as mining and agriculture.

European Investment Bank Vice President Karl Nehammer emphasized the significance of modernizing the rail infrastructure and its contribution to the country’s economic growth.

Meanwhile ZRL Board Chairperson Emmanuel Hachipuka thanked the European Union for the generous EUR 50 million grant extended to Zambia Railways Limited for the rehabilitation of key sections of the railway track.

Mr. Hachipuka said the EU grant will enable Zambia Railways upgrade critical sections of the railway line and improve train speeds as well as efficiency.

“The grant is a key step in addressing inefficiencies in rail transport and it will unlock future funding for the company. For Zambia Railways, this project represents renewed relevance and confidence. It will allow us to handle increased cargo volumes and reduce transport costs” said Mr. Hachipuka.

And two European logistics companies, C. Steinweg Bridge Zambia and Africa Global Logistics applauded the EU investment to Zambia and its immense benefits to the rail sub sector.

Other dignitaries in attendance were senior management officials from the shareholder, the Industrial Development Corporation (IDC).

The EU project will support track repair works on the Zambia Railways Limited’s mainline between Livingstone and Ndola. This will ensure safer, more reliable, and efficient train operations.