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Tinashe Makichi Business Reporter
THE National Railways of Zimbabwe’s target to move five million tonnes of coal this year is likely going to be affected by inconsistent production and supply of commodity from the domestic coal mining industry.
NRZ acting general manager Mr Lewis Mukwada told the Herald Business yesterday that coal volumes targeted for 2015 will be revised.
“We projected an initial target of five million tonnes this year in terms of volumes and considering what has been happening in the coal industry we are likely going to miss our target because coal remains one of the commodities transported by the company. Following our observation on the movements in the coal industry we then revised our projections,” said Mr Mukwada.
NRZ’s has capacity to transport 80 million tonnes per annum, but it is moving only six million tonnes due to depressed market and reduced capacity.
Last year the company managed to move 3,8 million tonnes and in terms of recapitalisation NRZ is still in negotiations with the Development Bank of South Africa to avail funds for the revival of its operations.
NRZ has so far received $460 million from the DBSA, which has been used primarily to support the rail operator’s infrastructure and rolling stock.
The rail utility is struggling to attract investment from the private sector because of its current poor state of financial position and challenges with the rail utility has failed to address its ballooning salary debt.
NRZ’s salary debt ballooned to about $55,8 million, as the parastatal’s fortunes continue to take a knock on the back of a subdued market.
The situation has affected the company’s prospects to secure investment from the private hence making its revival a difficult calling. NRZ is responsible for a national network of approximately 2 700-3 000km, with its main line running for 1 500km.
Online Reporter