NRZ looks to proposed routes to boost revenue inflows

Oliver Kazunga, Senior Business Reporter

THE National Railways of Zimbabwe (NRZ) has come up with proposed routes based on its systems map across the country to boost revenue inflows under the $400 million recapitalisation project.

In 2017, NRZ and the Diaspora Infrastructure Development Group/Transnet Consortium signed the $400 million deal meant to recapitalise and rehabilitate the country’s railways firm, which requires about $1,9 billion in the long-term.

In an interview yesterday, NRZ public relations manager, Mr Nyasha Maravanyika, said: “We are not planning to introduce new routes as such but these are the proposed routes on our systems map countrywide because we have a systems map that shows our routes that are already there and these proposed routes were put in place as part of the recapitalisation project.”

He said, for instance, there is a proposed route from Ngamo-Kwekwe and the idea was to try and reduce the travelling distance going via Bulawayo. 

“We understand there is quite a lot of mining activity at Kwekwe and also Ngamo-Hwange, there is a lot of mining activity there.

“There is also the Beitbridge-Chikwalakwala route as we understand there is some coal mining activity around that area.” 

 

Other proposed routes include the Sengwa-Kwekwe, Sengwa-Lionsden, Lionsden-Kafue route and Harare-Moatize.

Apart from Victoria Falls-Livingstone, the Lionsden-Kafue route is also an alternative expressway to link Zimbabwe with Zambia while the Harare-Moatize route is also being proposed to connect Zimbabwe and Mozambique by rail.

“The Harare-Moatize route will link up Zimbabwe and Mozambique and it passes through Murehwa and Mutoko and we know there is granite mining taking place around Mutoko. 

“Then there is also a short one that is being proposed from Shamva-Murehwa because of gold mining operations, then we also have one from Mkwasine-Mutare for exports going to Beira in Mozambique,” said Mr Maravanyika.

It is hoped that the proposed routes will also go a long way in improving connectivity between Zimbabwe and the region and thus enhancing inter-regional trade.

Meanwhile, Government has agreed to extend the framework agreement for the $400 million recapitalisation of NRZ by a further six months to facilitate finalisation of outstanding issues.

The main objective for seeking an extension is to get to irrevocable binding term-sheets and usher in the Joint Venture Agreement.

Recently, DIDG and Transnet executives were in Zimbabwe to engage Government officials with a view to exploring avenues that would lead to closure of the NRZ recapitalisation deal.

While financial closure of the $400 million recapitalisation project is still pending, NRZ/DIDG Transnet have signed an interim solution as a stop gap measure to address the railways entity’s resource gaps that have affected its operations.

The interim arrangement has seen NRZ leasing 13 locomotives, 200 wagons and seven passenger coaches from South African rail utility, Transnet.

In the first four months of 2018, NRZ moved 771 000 tonnes of freight compared to 679 000 tonnes in the same period in 2016, as benefits of recapitalisation bear fruit.

  @okazunga.

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