NRZ set to make $1,1m monthly
Eng Mukwada said NRZ will also carry on with its shortterm initiatives that have seen the deployment of voice communication network on most of the main line corridors and thus reducing speed restrictions on the track from 422km to 246km at present, pending finalisation of the deal.
He said the $400 million recapitalisation deal was part of NRZ’s longer-term $1.76 billion recapitalisation initiative, which is expected to restore Zimbabwe’s railway network to full capacity.
“The balance of this programme will naturally be carried out under the envisaged joint venture arrangement,” he said.
Speaking at the same occasion, Transport and Infrastructural Development Minister Dr Joram Gumbo said the journey to finding a lasting solution to NRZ’s challenges has been long and arduous. “But we are now confident of getting positive results starting with this “quickwin” interim arrangement that seeks to capacitate the NRZ in its operations, for more efficient services to industry and the public, as we focus on rebuilding our economy,” he said.
Dr Gumbo said for the past decade, efforts to turnaround NRZ were to no avail until Government requested the parastatal’s board and management to come up with a turnaround plan comprising short and long-term strategies. The DIDG/Transnet consortium was awarded the tender by the then State Procurement Board in August 2017.
“The consortium’s proposal offered a more comprehensive solution to the recovery of NRZ, which is what is needed to revive the organisation from its current state,” he said.
This, Dr Gumbo said, offered an off-NRZ balance sheet funding solution without recourse to Government guarantees, thus addressing one major challenge NRZ always faced in its efforts to acquire funding.
“I have given the NRZ board and management tight but realistic timelines within which to conclude their negotiations. They will then submit their draft agreements and project feasibility documents to the joint ventures unit within the Ministry of Finance and Economic Planning, for scrutiny in terms of the new Joint Ventures Act, before submission to Cabinet for final approval,” said Dr Gumbo.
NRZ board chairman, Mr Larry Mavima, said under the new political dispensation and new economic order, the railways firm was at the forefront of providing tangible evidence that Zimbabwe was open for business.
“Most of this equipment has already arrived and more will be coming before the end of the month…this also completes our first deliverables for the 100 Day plan that ends in February 2018,” he said.
Mr Mavima encouraged the private sector and the business community in Zimbabwe to take advantagre of the winds of change blowing at NRZ to reduce their transport costs.
Industry executives have said that improved efficiency by NRZ is expected to see companies that transport bulk cargo reducing logistic costs by between 15 percent and 20 percent. — @okazunga.