NRZ aims to shift bulk of freight from road to rail

NEWLY appointed National Railways of Zimbabwe (NRZ) chief executive, Mr Munyaradzi Stephen Charangwa, has said the parastatal will prioritise shifting bulk freight currently carried by road back to rail, as part of a revised operational strategy expected to be finalised by the end of May to stabilise and improve financial performance.

In an exclusive interview with Zimpapers in Victoria Falls on Saturday, Mr Charangwa said immediate priorities include improving financial performance, mobilising resources and addressing longstanding maintenance challenges that have constrained the rail operator for several years.

“I think it is very important that we connect with our stakeholders today, there are quite a lot, our sovereign wealth fund, our boards and most importantly, the public. We have been given, earlier you spoke about Vision 2030, it’s very clear within these years what is expected of the rail.

“Now in terms of the hundred days, we have got short to medium-term objectives and long-term objectives. The challenge at the moment or the challenges at the moment have mainly been around resource mobilisation and general maintenance, first to move a lot of the bulk cargo that is on the roads onto rail. Looking at it right now, we look at about 80 percent of our revenue being freight but there is definitely an opportunity to increase that capacity,” Mr Charangwa said.

The new chief executive, who was appointed on April 1, assumes office at a critical time for the rail operator. In 2025, NRZ targeted the movement of 2,13 million tonnes of cargo nationwide but managed 2,03 million tonnes, falling short by approximately 100 000 tonnes.

At the time, management attributed the shortfall to persistent capacity constraints, including limited locomotive availability, frequent breakdowns due to ageing equipment, fuel shortages and a range of logistical challenges.

Mr Charangwa, an economist with more than two decades of experience in logistics and infrastructure management, said the existing Mutapa strategy would be reviewed and “hybridised” to produce a clear turnaround roadmap.

“So, in the first 100 days, I think what we need to do is to improve financial performance. We need to have an assessment and an advised strategy. So, when I say an advised strategy, it is an existing strategy. There is the Mutapa strategy and we need a hybrid of those strategies to align, and the strategy will then inform.

“So, when do we expect the strategy? Sometime in May. We will have a strategy leadership report. We are hoping that by the end of May, we have an approved strategy, which we can share every time. So, in a nutshell, I think look at it like we have already started the process of a more in-depth assessment of the operations and systems.”

The rail operator has battled persistent challenges over the past decade, including mounting debt, locomotive shortages and growing competition from road haulage, which often undercuts rail tariffs while contributing significantly to damage to the country’s highway network.

Vandalism of signalling and communication infrastructure has also disrupted operations, with some rail routes remaining impassable for extended periods.

Industry analysts say reviving NRZ is not only a corporate necessity but also a national and regional imperative.
As Zimbabwe’s primary freight backbone linking landlocked neighbours such as Zambia, Botswana and the Democratic Republic of Congo to the ports of Beira, Durban and Maputo, a functional rail system plays a key role in reducing logistics costs.

At present, more than 90 percent of regional bulk freight is transported by road, increasing transport costs by up to 40 percent and accelerating road deterioration.

“But like I said, we need to improve our financial performance. We need to get the systems in place or just revise or review the systems. Sort of like a status quo. Where we are, what we think we will do, is it what is already there? That will be addressed in the strategy going forward. We are hoping that in the next month it will be there, and that strategy will then answer your question about the standard said Mr Charangwa.