Chronicle Editor
THE National Railways of Zimbabwe (NRZ) has secured an US$81,2 million wagon and locomotive deal with an Indian company, RITES.
In terms of the agreement signed in New Delhi on Thursday, the NRZ will take delivery of 315 wagons and nine locomotives from RITES, which is owned by the government of India.
This is the latest in a string of agreements the logistics giant has signed or negotiated in recent years. There have been discussions with potential investors in Turkey, Russia and Indonesia as well as the US$400 million Diaspora Infrastructure Development Group (DIDG), which was championed by a group of Zimbabweans based abroad.
The DIDG agreement progressed beyond signature to delivery of some rolling stock from South Africa to work on the local network. However, the deal was later scrapped.
The NRZ desperately needs an immediate revamp so that it moves more cargo and becomes more efficient so it can contribute more effectively to national development. It needs more new locomotives and wagons. Its signalling system must be modernised; the same for its tracks. This needs large sums of money which the utility, and the Government do not have at this stage.
Commenting on the deal, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said it will go a long way in protecting the country’s road network, which is under pressure from haulage trucks carrying various goods including coal, bricks, seed and fertilisers.
“The relationship between India and Zimbabwe is deepening and we will be able to see the bulk transportation of goods out of our roads; you know that bulk carriages have to be done by National Railways and that will save our roads. We know we are repairing our roads in Zimbabwe and this deal is a very good and welcome development as NRZ will have locomotives,” said Minister Mutsvangwa.
NRZ general manager, Mrs Respina Zinyanduko said: “The signing of this agreement is a great milestone to the NRZ. As you may be aware, NRZ had taken years and years without recapitalisation and this initiative that was facilitated by the Government of Zimbabwe through engagement with the government of India which resulted in us and RITES signing this agreement today (Thursday) will definitely assist us to have solid locomotives and wagons to carry our cargo to the ports.”
The Thursday agreement is certainly a small one in dollars and cents, and considering the work that must be done. We wrote some two years ago that the parastatal needs at least 41 locomotives, 300 wagons and another 300 coaches. The railway lines must be revamped too. This suggests that the budget must be at least US$1billion.
However, that first step is crucial. It sets the pace for the race.
We now look forward to the locomotives and wagons being immediately delivered and starting to work for the economy. That deal can be scaled, we hope, since the NRZ is so huge and needs much investment as we have noted. If it cannot be scaled, the NRZ must be free to talk to other potential investors for additional arrangements to increase the number of wagons, coaches and engines and rebuild its lines. That support can come from Russia, Indonesia or Turkey; no problem.
Online Reporter