TENDAI BHEBE
Transport and Infrastructure Development minister, Felix Mhona, has urged the National Railways of Zimbabwe (NRZ) to commercialise its expansive workshop space in Bulawayo to get additional revenue for its operations.
The workshop is arguably the biggest in the region.
Mhona said doing engineering work for other organisations could turn NRZ fortunes.
“I have also mandated the NRZ team to think outside the box where we (have) vast workshop space in Bulawayo where we can brag in the region to have such kind of facilities. (It can be a regional hub) where NRZ can create engineering works. (It’s) critical to start servicing the region,” Mhona said.
The call by Mhona comes at a time when NRZ is in the middle of a turnaround programme intended to bring the parastatal back to its former glory.
The NRZ recapitalisation initiative involves the rehabilitation and renewal of plant, equipment, rolling stock, track signalling and telecommunications infrastructure and the supporting information technology (IT) systems.
Mhona emphasised the importance of the nation’s railway system for economic growth.
“The country’s railway network is of strategic importance through its interconnectedness with other national networks along the South and West East corridors. However, the network has experienced a number of challenges assorted with aging track infrastructure,” Mhona said.
He said Treasury was availing US$150m for the rehabilitation of locomotives.
In order to lessen the strain on the roads, Mhona insisted that it was essential to rehabilitate the rail track.
“…We will be getting US$150m to buy our locomotives and also to rehabilitate the track. It will ease the burden on our roads,” he said.
Analysts said an efficient railway system would lessen the burden on the road infrastructure.
Apparently, bulk consignments are being transported through major highways instead of rail infrastructure. This has been attributed to the collapse of Zimbabwe’s road network.
Recently, the government pledged to avail ZWL$2bn to recapitalise NRZ, which is battling a myriad of challenges including ageing railway line, depleted rolling stock fleet and old coaches, among many other crippling problems.
Six years ago, the government awarded the US$400m tender to recapitalise NRZ to South Africa’s Transnet, which partnered a consortium of non-resident Zimbabweans- the Diaspora Infrastructure Development Group (DIDG).
However, the deal collapsed.
Although, NRZ, required about US$2bn to turn around its fortunes, the US$400m would have helped reposition NRZ for self-sustenance as the rail company’s network provides a vital link between landlocked countries like Zambia, Democratic Republic of Congo as well as seaports in South Africa and Mozambique.
NRZ general manager, Respina Zinyanduko said: “In this phase NRZ seeks to raise US$115m for the short-term recapitalisation to procure nine new locomotives and 315 wagons as well as infrastructure rehabilitation to the main trade corridors to Mozambique ports of Beira and Maputo.”
