Online Reporter
Business Reporter
INEFFICIENCIES in rail infrastructure are driving logistical costs for key bulk mineral commodities, severely undermining their ability to compete in the global markets.
Minerals Marketing Corporation of Zimbabwe (MMCZ) marketing manager, Mr Gumisai Nenzou, said the reliance on costly road transport was making low-value, high-volume minerals like coal and chrome economically unviable for critical overseas markets.
“We see this as a challenge, especially when we look at low-value commodities such as coal and chrome,” Mr Nenzou said.
“We have got a lot of overseas markets that are looking for these products, but because of the challenges of our infrastructure to move as much volume [as demanded], that places us at a bit of a competitive disadvantage when we then look at logistics costs.”
Transporting bulk commodities by road, particularly for long-haul exports to ports like Beira, increases the final landed cost, eroding profit margins and undermining Zimbabwe’s price competitiveness against regional and international rivals.
The challenge stems from decades of underinvestment and operational decline at the National Railways of Zimbabwe (NRZ).
Peter Tanyanyiwa