Chronicle EditorThe National Railways of Zimbabwe (NRZ) says it will not meet its full-year target of moving 4 million tonnes of freight after it moved 2,5 million tonnes by the end of November this year.The parastatal has failed to run profitably for years due to under-capitalisation and ageing rolling stock.
NRZ general manager Lewis Mukwada attributed the subdued performance to low business that was available during the first quarter of the year.
“The NRZ has moved 2,5 million tonnes of freight, as at November 30, 2016, against a 2016 target of 4 million tonnes,” he said.
“The projection for the end of year now stands at 2,7 million tonnes as compared to 3,2 million tonnes moved last year.”
Mr Mukwada said business started recovering in the last half of the year, due to maize imports and chrome ore exports that came later in the year.
“The NRZ expects to maintain this momentum of recovery and is targeting to move 3,5 million tonnes in 2017,” he said.
The NRZ has performed poorly over the past few years, and has incurred losses of over $200 million between 2009 and 2013.
Its 2014 accounts showed that its freight unit was generating annual revenue of $91,2 million, but incurring costs of $103 million.
The passenger unit had annual revenues of $3,2 million, with costs over three times more at $10,9 million.
The parastatal has said it requires $2 billion to fully recapitalise.
At its peak, the NRZ employed about 20 000 workers and moved 18 million tonnes of freight annually.
The NRZ is one of the 10 state enterprises that the Government has targeted for reform and its revival is seen as crucial to the turn around of local industries. – New Ziana.
Online Reporter