Australia and the World Past and Present

German colonial railways were predominantly state-funded and directed.

The pattern differed from Britain’s more private-capital model.

German railways were usually planned by the imperial government (Reich) or colonial administrations.

They were frequently owned by the state.

Private investors tended to be wary as most African colonies were initially unprofitable.

Lets look at some key colonies and lines.

In German East Africa there was the Central Line (Zentralbahn) which went from Dar es Salaam to Tabora and then continued on to Kigoma. It was built between 1905 and 1914 and was funded by the German state.

Then there was the Usambara Railway which ran from Tanga to Moshi. Funding for the line was mixed, but the project was state-backed.

Rail in South-West Africa expanded rapidly after the Herero and Nama wars. They were almost entirely state-funded.

Most of the main public lines in Cameroon were built between 1906-1914. They were funded through the colonial state and forced labour was often used in their construction.

In Togoland, the size of territory meant that there was limited number of lines. They ran on a north-south axis and linked plantations with ports.

There were very few private lines in German colonies. Where they did exist, they tended to be mining or plantation spur lines.

This sits in contrast to railways in British colonies.

British colonial railway finance was more varied and more market-orientated.

The dominant model was the “guaranteed railway” system, particularly in the period 1860-1914.

According to this system, a private company would raise capital (usually in London). The colonial government guaranteed a fixed return (often 3-5%). If profits fell short, the colonial treasury made up the difference. Much of the risk was eliminated. The British government were pleased because the model avoided upfront capital costs. India was the classic example of the guaranteed railway system. Other examples include the Uganda Railway and the West African Railways (Nigeria and the Gold Coast).

After about 1900 there was a move to more state-based models. This may have been necessary in places where populations were small and there was a lack of interest from private capital. Some lines in Nigeria (the Lagos-Kano line) and Burma were built using this model.

In German colonies, the vast majority of railway construction was done using public funds. Private investors were wary. German East Africa and German South-West Africa were vast territories where there was significant local resistance to German rule. Consequently, security was a real problem and this made investing in private railways a risky proposition.