The Mtwara-Mbamba Bay Standard Gauge Railway is a proposed 1,000 km railway from Mtwara Port on Tanzania's Indian Ocean coast to Mbamba Bay on Lake Nyasa, with branches to the Mchuchuma coal and Liganga iron-ore areas. The railway is intended to support the Southern Tanzania growth corridor and improve access between Mtwara Port, mineral and agricultural production areas and neighbouring regional markets.
The project recorded a USD 5.5 billion estimate at 2016 prices, excluding VAT. Tanzania's official PPP pipeline of March 2026 lists the project at approximately USD 5.6 billion. Parliamentary records confirm completion of feasibility and preliminary design and describe work to engage transaction advisers, prepare PPP procurement documents and mobilise investors.
The project will connect Mtwara Port with Mbamba Bay through southern Tanzania and provide branch lines to the Mchuchuma coal and Liganga iron-ore deposits. The PAP II concept covers approximately 1,000 km of standard-gauge railway and is designed for passenger speeds of up to 160 km/h and freight speeds of up to 120 km/h. The PAP II baseline was USD 5.5 billion at 2016 prices, excluding VAT; Tanzania's March 2026 PPP pipeline gives a current indicative estimate of approximately USD 5.6 billion.
The railway is intended to form the transport backbone of the Mtwara Development Corridor. It would support movement of minerals, agricultural products, fuel, industrial inputs and general freight between inland production areas, Lake Nyasa and the Indian Ocean. Malawi, Mozambique, Tanzania and Zimbabwe are identified as beneficiaries in the PAP II record.
Feasibility and preliminary design were completed before the current reporting period. Government reporting in 2023 described the next step as engagement of a transaction adviser to review the earlier feasibility work and prepare procurement documentation for selection of a PPP investor. The PPP model reflects the project's large capital requirement and the need to link railway demand with development of the mineral and agricultural base.
In February 2026, Tanzania's Deputy Minister for Transport confirmed that feasibility and preliminary design had been completed and that the government was continuing to mobilise resources, including through public-private partnership arrangements. No official record reviewed confirms financial close, award of a railway works contract, contractor mobilisation or construction.
The project aims to provide a high-capacity rail connection between Mtwara Port, Mbamba Bay and the mineral and agricultural production areas of southern Tanzania. It is intended to reduce bulk-transport costs, improve access to export markets and support development of the Mchuchuma coal and Liganga iron-ore resources.
It also seeks to strengthen the wider Mtwara Development Corridor, improve regional access for neighbouring countries and stimulate industrial, logistics and agricultural investment. By shifting heavy freight from road to rail, the project is expected to improve transport efficiency and reduce pressure on the road network.