Editorial Comment: NRZ board must urgently appoint GM

zimpThe announcement that the National Railways of Zimbabwe has started the process of appointing a substantive general manager is welcome news. The parastatal has been without a substantive general manager since late 2013 following the death of its general manager, Retired Air Commodore Mike Karakadzai who died in a car accident.

The NRZ board chairman and former general manager, Engineer Alvord Mabena, said about 40 candidates had applied  to fill the post of general manager and the board will soon shortlist candidates for interviews. Engineer Mabena said the board was meeting at the end of this month and it is at this meeting that it expects to finalise the issue of short-listing candidates. He said thereafter dates will be set for interviews.

According to the parastatal, the person to be appointed general manager should be a man or woman who is able to provide strategic leadership to the organisation and ensure that it makes meaningful contribution to Zimbabwe’s economy. The individual should be results-oriented and be able to spearhead an ambitious and transformative NRZ turnaround programme.

The NRZ which is a strategic company and a vital cog for the country’s economic turnaround, is operating way below its capacity. The parastatal which at one time was one of the biggest employers in the country, requires a complete overhaul of its infrastructure if it is to meet the expected demand for its services.

The NRZ which at its peak in 1998 moved more than 18 million tonnes of freight compared to only 3,7 million tonnes in 2011, is failing to move bulk goods for industry. The government which recognises the crucial role that NRZ plays in the   growth of the economy, recently secured $750 million loan facility from the Development Bank of South Africa and the money is meant to fund the rehabilitation of railway infrastructure as well as locomotives.

Most of the railway infrastructure has outlived its lifespan and therefore needs to be replaced. The parastatal is also operating with obsolete equipment hence its high operational costs. The loss-making parastatal has for years now been failing to pay its employees and now owes them about $55 million.

The NRZ, experts say, requires about $1,9 billion in the long term and about $460 million in the short term to be used to fund rehabilitation of infrastructure and equipment. Movement of bulk goods by railway is cheaper but companies are now forced to move bulk goods by road which is expensive because the NRZ is no longer reliable.

The expected resumption of operations at the New Zimsteel (former Zisco) in Redcliff  is dependent on NRZ’s ability to move coal from Hwange Colliery to the plant as well as moving steel to the port of Beira in Mozambique. The NRZ can only adequately prepare for the expected high demand for its service if a substantive general manager is appointed.

We therefore want to implore the board to move with speed to appoint the general manager who should hit the ground running in order to meet the deadlines to rehabilitate the railway infrastructure. The money that the government has secured requires a substantive general manager who is able to make decisions.

It is pleasing to note that despite the fact that NRZ is a loss-making parastatal, there are many Zimbabweans prepared to fill the post of general manager.

We want to believe the applicants are men and women of high integrity whose conduct is beyond reproach and have the passion to see NRZ turnaround. The challenge to the board is to come up with the best qualified candidate.

 

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