Zim/India US$81 million deal to improve NRZ capacity
The National Railways of Zimbabwe (NRZ) is set to improve its operational capacity by 2,5 million tonnes annually once it starts receiving 315 wagons and nine locomotives under the US$81,2 million deal the Government and India signed recently.
The deal which involves NRZ and Rail India Technical and Economic Services (RITES), was signed on the sidelines of the 18th Confederation of Indian Industry-Exim Bank Conclave on India-Africa Growth Partnership recently.
Responding to written questions from this paper, NRZ general manager, Respina Zinyanduko, said over the last five years, her organisation has been struggling to meet customer demands on rail-friendly traffic resulting in customers complementing transportation needs with road truckers albeit at a higher cost to both the customers and economy in general.
“The injection of a reliable fleet of locomotives and wagons will benefit customers in terms of the quality of service where the customer would experience improved wagon supply, predictable service delivery times, and elimination of breakdown maintenance on locomotives and wagons carrying goods.
“The additional capacity will be 2,5 million tonnes per annum once these assets are delivered and operational, bringing the annual tonnage to be moved by rail to 4,8 million,” she said.
Last year, Zimbabwe’s bulk carrier moved about 2,3 million tonnes against a three million target due to operational inefficiencies on the back of undercapitalisation and obsolete equipment.
This year, NRZ targets to transport three million tonnes of cargo and at its peak in the 1990s, the logistics firm moved 18 million tonnes annually.
It is believed that the latest deal is a potential game changer to the aspirations of NRZ, taking into account that RITES is a company of repute owned by the Indian government.
Recently, the entity supplied locomotives and wagons to CFM of Mozambique and President Mnangagwa was invited to that neighbouring country to witness the commissioning of the rolling stock.
Zinyanduko said the delivery of rolling stock under the US$81,2 million arrangement with RITES would also reduce locomotive and wagon hire charges, reduce maintenance costs occasioned with frequent breakdowns as well as reduce overtime working associated with unscheduled maintenance.
Due to resource gaps the country’s rail operator faced in recent years, NRZ had resorted to leasing equipment such as locomotives, wagons and passenger coaches.
For example, in 2018 NRZ entered into an interim arrangement with South Africa’s railways operator, Transnet, to lease 13 locomotives, 34 passenger coaches and 200 wagons from Transnet.
The NRZ/RITES deal will see the first set of four locomotives being delivered within 12 months of release of advance payment while the remaining five shall be delivered within 18 months from date of advance payment.
“The parties engaged in contract negotiations from March 2022 up to the time the contracts were signed.
“As NRZ, we are happy with terms and conditions and we engaged all Government of Zimbabwe stakeholders throughout the process of negotiations.
“And we were finally given the go-ahead to sign the contracts by our parent ministry (Ministry of Transport and Infrastructural Development),” said Zinyanduko.
-ebusinessweekly
