EAZ sees economic positives over bulky cargo SI

By CHITE MTONGA THE signing of the statutory instrument (SI) that compels 30 percent of bulky cargo to be transported by rail will have a positive effect on the country’s economy, says Economic Association of Zambia (EAZ) presi- dent Chrispin Mphuka.

Dr Mphuka said the SI would advantage enterprises as it would reduce the cost of doing business thereby having a positive impact on the economy.

He said that Zambia Railways Limited and TAZARA would eventually also benefit from the regulation.

Dr Mphuka said the SI had an overall positive impact on the economy if well managed.

He said transportation of cargo via railway would be cheaper but the government needed to monitor the effectiveness and efficiency of the railway system.

“The SI is welcome and as EAZ, we feel that rail transport will be cheaper for enterprises, so it is a good move although Government needs to ensure that rail transport is efficient and rail infrastructure is,” Dr Mphuka said.

He said the signing of the SI was a welcome move but there was need to consider the efficiency and effectiveness of the current railway system.

Dr Mphuka said Government needed to invest in railway infrastructure to ensure that it complements the SI.

He said if rail infrastructure was improved there was need to even increase the percentage of goods to be transported by rail as it reduced pressure on road infrastructure.

Dr Mphuka urged companies that run railway transport to ensure that it was dependable as time management was central in business.

“In most developed countries transportation of heavy cargo is currently by rail and this is because they have identified its cost effectiveness,” Dr Mphuka said.