NRZ set to make $1.1m monthly

THE National Railways of Zimbabwe (NRZ) is set to improve its monthly revenues by $1.1 million on the back of newly acquired equipment from South Africa under an interim arrangement with the parastatal’s investors, general manager Engineer Lewis Mukwada said.

The first batch of the equipment, which comprises 150 wagons, seven locomotives and seven passenger coaches, was officially received by President Emmerson Mnangagwa in Bulawayo yesterday at a colourful ceremony that was attended by hundreds of people and graced by top local and foreign dignitaries. The Diaspora Infrastructure Development Group (DIDG)/Transnet Consortium has partnered with NRZ under a $400 million recapitalisation deal. Under the framework agreement, NRZ is leasing 13 locomotives, 200 wagons and 34 passenger coaches from Transnet as an interim solution to its resource gaps.

Eng Mukwada told the gathering that as a result of

factors of production.

“Increased investment is therefore needed to improve the quality of the regional transport network across all modes while promoting alternative renewable energy sources for the rail transport sector,” said Cde Mnangagwa.

In line with this regional thrust, he said Zimbabwe was committed to ensuring modernisation, rehabilitation and refurbishment of the country’s railway system and establishment of new networks which penetrate the region.

“This will in turn hasten regional integration and enhance our ability to offer lower transport costs, based on economies of scale and reduced cost of doing business. A rejuvenated railway network will therefore, not only benefit the country but other countries in the sub-region,” said the President. the leased equipment, NRZ will be able to transport an additional 100 000 tonnes of cargo per month, which will boost volumes and foreign currency earnings.

“For us as NRZ this (interim equipment) will boost our monthly revenues by $1.1 million, after allowing for the lease charges for the equipment,” he said.

“One of the provisions in the framework agreement is the availing of critical equipment needed by the NRZ on a lease arrangement as an interim solution to our challenges. This is in recognition of the fact that financial closure of the deal will take some time to finalise while NRZ continues to lose business due to shortage of locomotives and wagons.

“As NRZ we have been failing to transport all the ferrochrome chrome that miners want to export.”

Eng Mukwada said the NRZ locomotives would not only benefit chrome miners, but the generality of the parastatal’s customers as the equipment will be deployed on all the mainline corridors. “For our local customers, we are planning to release 400 wagons from our workshops this year to help address their requirements,” he said. To Page 2

He paid tribute to NRZ workers for their patience and resilience during the time the company was facing challenges and pledged Government support in ensuring that the company improves workers’ welfare as business improves.

Vice President Kembo Mohadi, Cabinet ministers – Dr Obert Mpofu (Home Affairs), Winston Chitando (Mines) Dr Chris Mushowe (Scholarships), Dr Joram Gumbo (Transport) and his South Africa counterpart Mr Joe Maswanganyi, Zimbabwe Ambassador to South Africa Cde Isaac Moyo, DIDG and Transnet executives, NRZ board and management, provincial ministers of state and senior government officials as well as scores of Bulawayo residents attended the reception ceremony.