Private-public partnerships pay dividends for
NRZ

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, reorganisation, 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 Kwekwebased 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.”-chronile