NRZ procures $6m rail equipment
THE National Railways of Zimbabwe (NRZ) has bought new rail equipment worth about $6 million as the parastatal moves to boost its operational efficiency under a $400 million recapitalisation framework.
Last July, the strategic entity whose infrastructure and equipment has outlived its lifespan, identified an investor, DIDG/Transnet under the $400 million recapitalisation project.
Speaking by telephone from Harare last week, NRZ board chairman Mr Larry Mavima said his organisation and DIDG/Transnet have found a framework for the implementation of the recapitalisation programme.
“We have found a framework which enables us to implement the programme. We are expecting NRZ equipment that we bought from South Africa to arrive in the country next week.
“The equipment, which comprise 10 brand new main line locomotives, 200 wagons, 34 passenger coaches, and shunting equipment make the initial set of equipment to boost our capacity,” he said.
President Emmerson Mnangagwa is expected to commission the railways equipment at the NRZ headquarters in Bulawayo.
Mr Mavima said NRZ is incapacitated to effectively and efficiently execute its mandate as a strategic transporter due to antiquated equipment and infrastructure.
“The reason for recapitalisation is for us to be able to retool because current equipment is way past its lifespan and faces continuous breakdowns resulting in us not being able to move freight being availed to us.
“The procurement of the initial set of equipment under the recapitalisation programme is a first step towards mitigating equipment failure at NRZ,” he said.
One of NRZ’s major customers, Zimasco said last month that it was stuck with over 200 000 tonnes of ore after the railways company failed to transport them due to a shortage of wagons.
Before the downturn, the entity had the capacity to carry over 18 million tonnes of freight per year but was presently transporting less than four million tonnes.
The parastatal has a fleet of 168 locomotives, 60 of which are in service and more than 7 000 wagons of which 3 512 are in use.
As part of efforts to attract investors and turn around the fortunes at NRZ, the parastatal approached the Government for warehousing of the company’s legacy debt amounting to about $140 million.
And within the recapitalisation framework, NRZ plans to liquidate the debt Government has agreed to warehouse over a period of time.
To show its support for the revival of NRZ, the Government last year granted the parastatal’s $400 million recapitalisation programme a National Project Status warehousing part of the company’s debt as well as conditional ring-fencing bulk freight cargo to rail and offering sovereign guarantees for any loans provided. — @okazunga