NRZ revival to reduce cost of transporting goods

THE revival of the National Railways of Zimbabwe (NRZ) will significantly reduce the cost of bulk transportation of goods locally and in the region thereby easing stress on the road infrastructure, a senior official has said.

Last week, Transport and Infrastructural Development Minister, Dr Joram Gumbo, said NRZ’s $400 million deal with a consortium led by the Diaspora Infrastructure Development Group (DIDG) and South Africa’s Transnet was back on the rails after Cabinet gave a nod to the proposed deal.

Officially opening the Ad-hoc expert group meeting on Tripartite Free Trade Area (TFTA) in Bulawayo yesterday, the Permanent Secretary in the Ministry of Finance and Economic Development, Mr Willard Manungo, said the revival of NRZ would greatly impact on the entire regional transport system.

“The envisaged resuscitation of NRZ will facilitate the less costly transport of bulky cargo and reduce the stress on the road infrastructure.

“After the completion of such projects as the NRZ rehabilitation programme, there will be a significant reduction in the cost of transporting goods and services within the region, Common Market for Eastern and Southern Africa (Comesa), Sadc, and the East African Community,” he said.

The meeting runs under the theme: “Deepening regional integration in Southern Africa: The role, prospects and progress of TFTA”.

Mr Manungo said deepening regional integration in Southern Africa was critical in opening of markets to member states to enhance the development of regional value chains, which would increase intra-trade, stimulate economic growth and lift people out of poverty.

In this light, he said, the Government has been mobilising resources towards capital projects such as the rehabilitation of Plumtree-Harare-Forbes Border Post road linking the country to the Beira Corridor, and construction of Tokwe-Mukorsi Dam to supply water to sugar plantations in the Lowveld.

Construction of the Kariba South Power Project as well as the upgrading of the country’s airports such as Victoria Falls are some of the major capital development initiatives towards enhancing regional integration.

“The recently started work on the dualisation of the Beitbridge-HarareChirundu road will improve the efficiency of the North-South corridor,” said Mr Manungo.

To bridge the funding gap for infrastructure, he said, the Government established a Joint Venture Unit housed in his ministry to facilitate public-private partnership initiatives and was presently outing a framework to implement Special Economic Zones in pilot areas such as Bulawayo, Sunway City in Harare and Victoria Falls.

Mr Manungo said the Government was also seized with the implementation of the ease of doing business reforms to improve the investment environment and the cost of facilitating trade.

“At regional level we have also been involved in cross border infrastructure collaboration. Notable projects include the rehabilitation of the Kariba Dam Wall where Zimbabwe and Zambia jointly mobilised resources and the opening of the One Stop Border Post at Chirundu,” he said.

Joint projects such as the Batoka power project with other regional counterparts were also in the pipeline.

Mr Manungo said being a member of Sadc and Comesa, Zimbabwe was committed to regional integration and through Zim-Asset, Zimbabwe recognises the importance of trade in order to transform the economy.

“Under the value addition and mineral beneficiation pillar, the main thrust is to increase value added imports. The infrastructure development offers scope for reducing the cost of doing business and facilitating the ease of access to regional markets,” he said. — @ okazunga