Tanzania Railway Corporation has successfully awarded Hyundai Rotem a $296 million contract to supply 17 electric locomotives and 80 electric multiple units (EMUs) for the country’s ongoing railway construction project. The trains will be Tanzania’s first electric trains, according to the corporation, and will be delivered by 2024. The 546-kilometer railway that runs from Dar es Salaam to Makutupora was recently rebuilt as part of the Tanzania standard gauge railway project’s first two phases will be equipped with Hyundai Rotem electric vehicles.

The agreement comes as part of Tanzania’s plan to restore its railroads, which includes a $6.9 billion investment to overhaul the country’s antiquated rail system. Tanzanian tracks were narrower than normal gauge, limiting train speeds to 30 to 40 kilometers per hour. The enhanced tracks suggest a higher maximum speed of 160 kilometers per hour for Hyundai Rotem’s electric locomotives and EMUs.

With three more phases required for the completion of the Tanzania’s standard gauge railway project, the project demands a significant upgrade to the 673-kilometer railway between Makutupora, Tabora, Isaka, and Mwanza.

Hyundai Rotem is keen to actively challenge future rivals in a bidding war to deliver more electric trains. The representative for Hyundai Rotem expressed their zeal to focus all effort towards completing the contract saying: “As our products will be Tanzania’s first electric trains, we will do our best to successfully carry out the contract,” “We will try to obtain additional contracts by supplying high-quality vehicles.”

As part of the East African Railway Master Plan, the Tanzania Standard Gauge Railway is being built to connect the country to its neighbors Rwanda and Uganda, and through them, to Burundi and the DR Congo. The first two sections of this standard gauge railway project were funded by the Tanzanian government using locally produced revenues and short-term temporary loans until February 2020.