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Oliver Kazunga, Senior Business Reporter
THE National Railways of Zimbabwe (NRZ) should start scouting for potential investors to undertake and supply critical rail infrastructure components to support the parastatal’s US$400 million recapitalisation initiative, a United Kingdom-based Zimbabwean rail expert has said.
The Diaspora Infrastructure Development Group (DIDG)/ Transnet consortium is pursuing the US$400 million recapitalisation deal aimed at resuscitating the ailing railways entity. Financial closure to the deal is still pending and recently DIDG made submissions to the board on the appointment of AfreximBank as the lead arranger and co-ordinator to mobilise the required funding.
Speaking by telephone from his UK base yesterday, Mr Kudzai Makuku, a construction manager at Network Rail in that country, said NRZ should start positioning itself and engage relevant suppliers and other partners to ensure the rehabilitation project does not stall once it gets rolling. He also advised NRZ to decentralise its rail network to cover more routes at home and in the region.
“In this case we will be able to achieve more than one company dealing with the whole network and on top of devolution of the rail network we also need strong investors into other rail components and this can be done by other investors willing to take part,” said Mr Makuku.
“In railways you need a few basic things like sleepers, clips, ballast, signals, switches and crossings and so on, which can be another area that investors can focus on and then supply those who would have won the rail construction tenders.”
He said as the NRZ rehabilitation programme gets underway, it was not advisable to expect one company for example; DIDG/Transnet consortium, to produce all required components and do construction at the same time. As such, Mr Makuku said, NRZ needs to look into ways of creating shared investment and responsibility to attract different kinds of investors to promote continuity of the rehabilitation project once it gets underway.
“As a rail expert and other colleagues in the diaspora, we can easily find a few investors for such a project. One company or investor will not be able to build the network that Zimbabwe requires on account that our rail infrastructure is currently in a parlous state.
“Sleeper production is another business venture that is easy to set up and if the money is available, we can also manage to attract a few investors into this,” said Mr Makuku.
He said the resuscitation of the country’s steel manufacturing unit, Zisco, which closed down operations at the height of economic downturn in 2008, was critical as the company would produce rail clips and steel sleepers.
“Good rail links will also work to the advantage of Zisco and other giant firms and in terms of the routes, NRZ needs to rebuild the main network links like Harare-Bulawayo, and Harare–Mutare, as well as various others that need to be created,” said Mr Makuku.
“Zimbabwe is currently experiencing an unprecedented economic recovery since the advent of the new political dispensation and as it appears tremendous development looms with strong growth projections over the next three to four years.”
He said given the existing state of Zimbabwe’s railway infrastructure and rolling stock, the country desperately needs to rebuild the facilities and strong investment is needed towards this focus.
“Our transport sector can accelerate and intensify trade in Zimbabwe and Southern Africa as a whole by taking advantage of our geographical area, and the Walvis Bay dry port facility in Namibia can surely do us a lot of good.
“In terms of the routes, we will need to rebuild our main links like Harare-Bulawayo and Harare–Mutare as well as opening up various others to improve interconnectivity locally and regionally with other countries,” said Mr Makuku.
Recently, Transport and Infrastructural Development Minister Joe Biggie Matiza said Government plans to improve the interconnectivity of NRZ with other regional countries to improve the parastatal’s market share and revenue. — @okazunga.
Online Reporter