The revitalisation of the NRZ is expected to enhance
logistics efficiency across various economic sectors while easing the strain
induced by using haulage trucks to transport bulk cargo like coal.
This comes at a time when the massive transformation of the
country’s economy under the Second Republic has necessitated urgent collaboration
between the Government and the private sector players to scale up maintenance,
rehabilitation and expansion of the entire transport infrastructure system to
unlock more economic opportunities through improving linkages between new and
old productive zones with key domestic and international markets.
Transport and Infrastructural Development Minister, Felix
Mhona, confirmed the new capital finance deal during the 2023 Infrastructure
Summit and Expo, which ended in Victoria Falls last Friday and was officially
opened by President Mnangagwa.
Despite the continued imposition of sanctions, the Second
Republic’s engagement and re-engagement drive has seen some external financiers
warming up to supporting infrastructure development projects such as rail as
they realise the immense potential the country has.
Last month Government signed a US$81,2 million potentially
game-changing deal with India on the sidelines of the 18th Confederation of
Indian Industry-Exim bank Conclave on India-Africa for the recapitalisation of
NRZ.
“I’m happy Your Excellency, that you have facilitated a
line of credit that we are going to tap into as a ministry, and we will be
getting US$115 million to buy new locomotives and also rehabilitate the railway
track. This will reduce the burden on our roads,” said Minister Mhona without
disclosing the name of the financier.
He said a good rail network is key to the growth of
domestic, regional and international trade as it connects all major production
centres and providing services for businesses and passengers.
Minister Mhona said with a good railway network the cost of
transporting goods and raw materials is drastically reduced.
“The country’s rail network is strategic through its
interconnectedness with other regional networks along the north-south corridor.
However, the network has experienced serious challenges over the years due to
aging track infrastructure. We are happy as a ministry that you have
facilitated a very important line of credit so that we rehabilitate the rail
network,” he said.
Earlier in her presentation NRZ general manager, Ms Respina
Zinyanduko, had said the strategic rail entity was focused on transforming and
modernising its operations in line with Vision 2030 of becoming a dominant regional
surface transport and logistics solutions provider.
To ensure a gradual re-building of adequate capacity for
future business demand, she said NRZ was already pursuing a phased approach in
implementing projects based on debt/equity funding, strategic alliances, PPPS,
and/or joint ventures.
“This strategy seeks to drive the NRZ to profitability
under the turnaround phase of the 10-year strategic plan, which is subsequently
followed by growth and expansion phases,” she said.
“In this phase NRZ seeks to raise US$115 million for the
short-term recapitalisation to procure nine new locomotives and
315 wagons as well as infrastructure rehabilitation to the
main trade corridors to Mozambique ports (Beira and Maputo).”
NRZ board chairperson, Advocate Martin Dinha, has also
commended the Second Republic for increasing investments in rail
infrastructure, especially towards buying new wagons and passenger coaches and
US$43 million dedicated towards the rehabilitation of the railway line.
He told ZBC News while commenting on the issue: “Since
1992, this has been the most significant investment in the railway line showing
how the Government values NRZ as an economic enabler.”
During the summit it emerged that out of about 2 627km of
the total railway network in the country only 229km, which is nine percent is
under caution, which is equivalent to potholes in the case of roads.
In order to provide innovative, seamless, reliable and
cost-effective logistics solutions for goods and passengers, Ms Zinyanduko said
NRZ was aiming at improving and expanding its infrastructure capacity to meet
business demands.
“The NRZ is refurbishing its wagons through PPPs
(public-private partnerships) whereby customers pre-fund refurbishment of
locomotives, wagons or tankers and the amounts are set off through railage.
This programme will see an injection of refurbished wagons in the system on a
phased approach,” said Ms Zinyanduko. Chronicle
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