CHRONICLE

NRZ turns to PPPs to rebuild rail capacity

Rutendo Nyeve [email protected]

THE National Railways of Zimbabwe (NRZ) is intensifying efforts to rebuild its freight capacity through infrastructure rehabilitation, fleet refurbishment and strategic partnerships, with major railway modernisation projects progressing and new private-sector arrangements expected to bring additional locomotives and wagons into service.

The initiatives are expected to improve the movement of bulk goods, reduce transport costs and strengthen Zimbabwe’s links with regional markets, supporting the country’s economic growth ambitions under Vision 2030.

NRZ’s acting chief executive officer Mrs Ainah Dube-Kaguru, who was represented by Harare regional manager Mr Joshua Mhandire at the Zimbabwe Institute of Strategic Thinking (ZIST)

Annual Conference in Victoria Falls yesterday, said the entity was pursuing infrastructure development and logistics diversification in line with the National Development Strategy 2 (NDS2).

She said rehabilitation works on the Mutare-Harare railway line had reached 80 percent completion, while the Machipanda-Beira upgrade in Mozambique and the Machipanda-Mutare renewal had been completed and commissioned.

The Plumtree-Dabuka-Chicualacuala railway line, being developed under a tripartite co-operation arrangement involving Zimbabwe, Botswana and Mozambique, is 35 percent complete.

“These developments are expected to boost economic growth by reducing transport costs and connecting the SADC region from landlocked to land-linked,” she said.

To address historical shortages of locomotives and wagons, NRZ is also pursuing Public-Private Partnerships (PPPs) and other strategic collaborations to increase the capacity available for freight movement.

Mrs Dube-Kaguru said the railway operator had released three locomotives and 100 wagons under a US$2,8 million arrangement with Zimasco, while plans were underway to release two locomotives and 120 fuel tankers funded by another partner.

A separate agreement with Grand Railway Solutions for Dinson traffic is expected to provide 21 locomotives and 1 200 wagons, alongside infrastructure construction and rehabilitation.
The arrangement is targeting the movement of 1,7 million tonnes of coal, ferrochrome, pig iron and steel by rail.

NRZ has also entered into a deal with Mixcorp Legacy, which will provide three locomotives and 100 wagons for coal transportation.

The partnerships are being complemented by a broader recapitalisation programme aimed at restoring the railway operator’s ageing fleet and infrastructure.

Mrs Dube-Kaguru said three locomotives were undergoing refurbishment under a US$3 million facility, while 520 wagons were earmarked for refurbishment through a US$6 million Mutapa Investment Fund facility.

“Procurement of 10 locomotives, 315 wagons and infrastructure upgrade is underway under the Afrex US$115 million facility,” she said.

Mrs Dube-Kaguru said negotiations were also underway for a proposed US$600 million medium-term financing package with China Railway International Group.

Beyond expanding the fleet, NRZ is implementing a Through Working Strategy on the Beira, Maputo and Botswana corridors in collaboration with Mozambique’s CFM and Botswana Railways.

The strategy is intended to improve the movement of trains across borders, reduce transit times and improve the turnaround of locomotives and wagons.

Rail transport is critical in terms of bulk commodities because trains can move large volumes of goods at a lower cost per unit than road transport.

Mrs Dube-Kaguru said a single 25-wagon train had the carrying capacity equivalent to 33 trucks, each with a 30-tonne capacity, helping to ease pressure on roads while reducing transport-related emissions.

On passenger services, she said NRZ had reintroduced the Bulawayo-Victoria Falls passenger train service in October last year, providing another transport option for travellers and supporting tourism activity along the route.

Mrs Dube-Kaguru said the rail sector offered opportunities for further collaboration in infrastructure development, rolling stock expansion and digital transformation, appealing for continued policy and financial support from Government and the Mutapa Investment Fund.