Zimbabwe News and Internet Radio

NRZ projects 32pc revenue growth

By Ishemunyoro Chingwere

The National Railways of Zimbabwe (NRZ) is projecting a 32 percent revenue growth for this year up from the $66 million achieved last year due to grain, chrome ore and passenger railway uptake. 

National Railways of Zimbabwe (NRZ) trains
National Railways of Zimbabwe (NRZ) trains

The growth projection was highlighted by the parastatal’s management to the Parliamentary portfolio committee on Transport and Infrastructure Development and this will see the company’s receipts, mainly from freight and passenger movement, growing from $66 million to $87 million.

Presenting the committee’s first report on the inquiry into the turnaround strategy for NRZ in Parliament on Tuesday, committee chairperson Dexter Nduna, said in their submissions on the current state of the company, the parastatal’s board and management noted that they were anticipating a rise in business despite the debilitating infrastructure shortcomings.

The high projections comes just three months after the State Procurement Board (SPB), awarded a $400 million tender for its revival to a consortium comprising Transnet and the Diaspora Infrastructure Development Group.

“NRZ projected that the revenue to be generated from both freight and passengers against the anticipated increase would be $87 million,” the portfolio committee told parliament on Tuesday.

If achieved, this would be a 32 percent increase from the $66 million raised in 2016. The NRZ board and management submitted that in 2017, NRZ would transport freight tonnes amounting to $3,5 million, an improvement of about 30 percent from the $2,7 million realised in 2016.

“In terms of the passengers, NRZ is targeting to move 387 000 passengers against the 287 000 that were transported in 2016. This would translate to a 34 percent improvement in passenger transportation in 2017,” notes the report.

The committee said as part of efforts to attain its goals, NRZ proposed its salary revenue ratio from the current 94 percent to about 62 percent this year.

This, management told parliament, will be achieved through cost-cutting measures and an improvement in revenue, which is premised on rebuilding customer confidence as well as adopting a flexible approach to its pricing tariffs whenever necessary so as to remain competitive.

The company is also forging ahead with its plans to lobby Government to expedite the enactment of legislation banning bulk goods transportation by road as well as advocating for a waiver of duty on diesel for locomotives.

The parastatal is also going ahead with the sale of scrap metal, which only last year earned them $2,5 million.

The committee is, however, worried that while the reduction of the salary to revenue ratio is taking long to be implemented, there is still no compelling solutions to finance the extinguishing of the workers’ debt which is now well over $90 million. The Herald

  • Buy better trains please

  • Buy better trains please

  • Aaaaahhhhh is that so????,,, ummm

  • Aaaaahhhhh is that so????,,, ummm

  • These are clear signs economy under President Mugabe was under an upward trend.

    Mucheka dzafa wakuda kuitwa nevamwe uyy

    • Kkkk

    • ????????????,,,,,,,,,,,,,

    • Wtf?

    • Ma G40 muchatinetsa. Sorry pamwe ndi Amai varikushandisa rimwe zita.

    • Chen wakatodyiwa brain Na Mugabe. Unofunga kuti Chikoro here chekuti Mugabe wako would head for life. Be conciderate of the Majority warikutambura because of the political dispensation of your former leader. Look at how backward we are in terms of infrustructure etc as compared to our neighbour South Africa. Pakudawo wamwe wane different way of thinking for us to get back on track..

  • So Mugabe did something positive?

  • airing different here,,,

    BIAFRANS are allmost allover the world,, so they help in making world business go round faster and easier ,,now the political, economic ,infrastructural,, security,etc situation in nigeria has been chocking them badly for over 50yrs,, if u check the names of those lybia deportees 85% of them must be from biafra land,,u know why, if biafrans want to feel at home in the north, they will be treated as infidels and killed like forbidden animals from any slight misunderstaning,but in biafra land all northerners are welcomed into our living apartments,, we even entrust them with our house gate keys when travelled,,then abt biafrans and western nigerians,,,we feel so much at peace/home with the yorubas than northerners,,bcos religion didnt enter their brain to spill human blood barbarically, bcos biafrans detests it..bad side of the west is that after working very hard to acquire wealth and re investing or developing their swamp areas to a vibrant city,, their state govt will wickedly or enviously come up with an evil policy that will turn wealthy biafrans to their semi_loved, stranded slave roaming the streets of lagos like scavengers..though we still love the westerners but some of them hates us bcos in money pursuit and other achievements ,overtaking is achieved faster by biafrans.. its a very bad experience that biafrans have no country on earth yet… and u know why we leave our land to others land? well the fed govt from Gowon’s regime upwards has a better answer to that…thanx my audience…u can say ur mind freely its democrarmy regime…..hhaahhaa!!
    BIAFRA FREEDOM NEXT

  • We need new trains kwete ayo ane ngura

  • Buy new ones Mutare we need it and Bulawayo too

  • PAY EMPLOYEES THEIR OUTSTANDING SALARIES PLEASE .

  • NRZ must improve passenger transportation nation wide

  • NRZ is packed with managers who owe their positions to political patronage. Authorising movement of traffic of their benefactors with out payment. Someone needs to ask them about ‘special numbers’

  • NRZ still needs a lot of attention saka stop telling us its making any profit.Capitol injection still… https://t.co/Bv6ULurt4A

  • Transnet inofanira kutora pasa iri

  • Heya muri kutoita Mari zvenyu musingabhadhare vashandi or kudzosera magetsi munjanji kana kutengawo zvitima zviri nani! Rongekayi ku NRZ ikoko pliz

  • Outdated railway tracks;locomotives,signal systems etc NRZ needs complete overall.

  • remove all in management and get started.

  • Gwendo gwe Gweru hagucha gugwi negugwe.

  • Move on and change your substandard and scary locomotives

  • nfofunga Zimbabwe tisu tega tasara ne typ iyi yechitima kkkkkkkkkkkk dhudhudhudhudhudhu Aiwa guys itaiwo zviri nane.

  • The government must trim the bloated NRZ staff, this parastatal is bleeding big time

  • Passenger kutii i train iyoyo

  • Passenger kutii i train iyoyo

  • Zvimasinhi izvi zvichir kufamba nhai

  • Chikiti

    Our trains must be in museums we need new tracks and high speed trains