NRZ targets hauling 3,5 million tonnes of freight

By Clinton Moyo

The National Railways of Zimbabwe (NRZ) has set a target of moving 3,5 million tonnes of freight this year, an increase of about 11 percent of the cargo railed last year, buoyed by the investment to be channelled by its new investor, Diaspora Infrastructure Development Group (DIDG)-Transnet.

NRZ board chairperson Mr Larry Mavima said the company is optimistic of upping the goods it would move this year due to its recapitalisation deal and a number of capital projects it would embark on. NRZ struck a $400 million recapitalisation deal with DIDG-Transnet. Last year the company met its 3,1 million tonnes freight movement, an increase from the 2,8 million tonnes it moved in 2016.

“We will meet our target (for this year). We had put our target at 3,1 million tonnes, I am talking about last year. This year we should reach about 3,5 million tonnes, that’s our target for this year,” said Mr Mavima.

At its peak in the late 1990s, NRZ moved 18 million tonnes of cargo annually. The parastatal’s performance has over the years largely been adversely affected by the prevailing macro-economic environment.

“The availability of capital is scarce especially from our shareholders but the (major) shareholder (Government) has given us the latitude to enter into Public Private Partnerships (PPPs) with private companies to enable us to resuscitate our capital goods and equipment to the extent that we are able to move and renovate our rolling stock much sooner than what we would do, when we would wait for capital injection from our shareholder,” he said.

Mr Mavima said the company was working on a number of PPPs with various firms.

“We have about three partnerships that we are working with, we are working with PPC (Pretoria Portland Cement), we are working with Sable Chemicals, we are working with PMW Carriers, so its three significant partnerships that will result in the refurbishments of wagons as well as tankers for fuel,” said Mr Mavima.

The company has also entered into an agreement to refurbish 25 of its wagons at a cost of $375 000 for use by Bulawayo-Beitbridge Railways. He said DIDG-Transnet is awaiting Cabinet approval to kick start its recapitalisation programme.

“We have completed the initial form of agreement with the investor, which is before the Cabinet right now. We hope that the approval will come at the right time, probably at the next Cabinet sitting, which is next on 6 February, thereafter its implementation,” he said.

Mr Mavima said the recapitalisation programme would also see the company’s workshop commencing bigger projects within the region and beyond.

“The workshops are part of the recapitalisation programme . . . there are machines that need to be modernised, there is equipment that is required, which is not there, not only to service the railways of Zimbabwe but to service the whole southern region,” he said. SundayNews