Private-public partnerships pay dividends for NRZ

02 Feb, 2023 - 00:02 0 Views
Private-public partnerships pay dividends for NRZ NRZ General Manager Ms Respina Zinyanduko

The Chronicle

Nqobile Bhebhe, Senior Business Reporter

THE National Railways of Zimbabwe (NRZ) says its strategic private-public partnerships (PPPs) with key institutions have started paying dividends.

NRZ is going through a phased recapitalisation program to restore operational capacity and restore profitability. Recapitalisation is one of the top priorities under the National Development Strategy (NDS1) as transport and logistics are part of the key pillars of economic recovery.

According to the company, several agreements are at procurement and refurbishment stages, which positions the parastatal to effectively implement its 10-year turnaround plan.

In 2021 the NRZ embarked on a restructuring exercise, which is anchored on the 10-year Strategic Plan that has three phases – the stabilisation phase, growth phase, and expansion phase.

In line with Government’s Vision 2030, the strategy seeks to achieve recapitalisation, re-organisation, and transformation of NRZ into a modern and efficient mode of transport of choice for both bulk passengers and freight.

Appearing before the Parliamentary Committee for Transport on Monday to deliver a report on the status of the company, NRZ general manager, Ms Respina Zinyanduko, said they have engaged several clients for partnership in refurbishing their fleet of parked wagons and locomotives through PPPs arrangements.

USDs

According to the report, 10 such arrangements have been entered into and these are at various levels of implementation.

For instance, the railway firm has struck a deal worth US$2, 4 million with the Kwekwe-based ferrochrome producer- Zimbabwe Mining and Smelting Company (ZIMASCO) for the refurbishment of 100 wagons and six locomotives for the movement of chrome ore.

Another arrangement involves Strauss Logistics for the refurbishment of 100 fuel tanks of which 25 tanks have been repaired and are now in service.

The arrangement for the movement of fuel was signed in March last year. An amount of US$154 110 would be injected.
As part of milestones for 2021 to 2022, Ms. Zinyanduko told the committee that NRZ: “entered into PPP with ZIMASCO for the refurbishment of 100 wagons and three locomotives, the process is now at the procurement stage.

“Strauss PPP for 100 tanks, refurbishment ongoing, and 25 tanks repaired are in service now. Other seven companies have been engaged for PPP and discussions at various stages. MM Holdings, Great Lakes Lion, ARC and are at funds mobilisation stage.”

NRZ building in Bulawayo

Through such partnerships, the report indicates that the company has so far repaired a total of 230 wagons, which have been released into service.

A total of 100 tankers have been refurbished using internally generated funds at a cost of US$160 000, reads the report.

According to the company, Zim Glass will refurbish 26 gas tanks, African Rail Company (ARC) to refurbish 100 tanks while Great Lakes Lion will refurbish eight locomotives and 440 wagons for movement of coal to the port of Maputo worth US$14 800 000.

Another 100 refurbishments of general purpose wagons would be done by Mukuwe Moyo Engineering and the agreement was signed August last year.

Ms Zinyanduko said NRZ has also recorded milestones in reduction of fuel consumption.

“NRZ managed to reduce its locomotive fuel consumption from the then average of 1, 8 million per month to the current level of 1, 0 million average per month,” she said.

“To achieve this, NRZ introduced measures to curtail fuel leakages either through theft by employees (ensured that all trains are escorted by the Loss Control and Security department, that crews are interchanged to avoid familiarity and connivance), fixed leaking fuel facilities, calibrated fuel pumps/facilities and ensured that NRZ received and dispatched correct quantities.”

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