NRZ plans to treble volumes

08 Jun, 2018 - 00:06 0 Views
NRZ plans to treble volumes

eBusiness Weekly

Africa Moyo
The National Railways of Zimbabwe (NRZ), which is already showing signs of recovery following the coming in of the Diaspora Infrastructure Development Group (DIDG) and Transnet of South Africa, plans to treble its freight volumes in the next three years.

This will be a significant jump in business volumes from the 2,7 million tonnes achieved last year, although that would remain way behind the 220 million tonnes of freight moved by Transnet in the same period.

DIDG and Transnet won the tender to recapitalise NRZ to the tune of $400 million last year.

Since then, the investors have crafted an interim solution aimed at providing 14 locomotives, 200 wagons and 34 passenger coaches considering that manufacturing and supplying of new locomotives takes between 18 and 24 months.

Ten locomotives have since been delivered and the company is generating revenues from moving coal, chrome and other freight.

NRZ general manager Engineer Lewis Mukwada, told Business Weekly recently that they expect the company to rapidly increase its volumes driven by the recapitalisation programme.

“In 2017, the NRZ floated a tender to raise funds to recapitalise the organization. Owing to this recapitalisation, the organisation expects to increase business volumes to over 9 million tonnes by 2021.

“New locomotives, wagons, (and) plants will be procured and these will have a lead time in manufacturing. While they are being manufactured, a gap for the first three years will be covered initially by hiring until the refurbishments and new procurements kick-in,” said Eng Mukwada.

Overall, the recapitalisation deal involves the delivery of 34 new locomotives, refurbishment of 28 locomotives, procurement of 200 new wagons and refurbishment of 768 wagons.

When all the locomotives and wagons have been delivered, especially at a time when industry and the mining sectors are showing signs of recovery following policy pronouncements by President Mnangagwa, NRZ is set for a business boom.

Some of the locomotives and wagons are currently busy moving coal and chrome to the markets, which has positively impacted on the firm’s revenues.

Eng Mukwada said in first four months, NRZ has moved 771 000 tonnes of freight compared to 679 000 tonnes in the same period last year.

In January, NRZ moved 196 000 tonnes, February (178 000 tonnes), March (182 000 tonnes) and April (215 000 tonnes).

The energy and mining sectors have become the company’s major clients.
Eng Mukwada said they expect to record more business in the second half of this year spurred by the impact of the 200 wagons and six class 34 locomotives that were deployed effectively from mid-April.

The company expected to move 300 000 tonnes of freight in May this year, compared to 233 000 tonnes ferried in the comparative period.

NRZ is already working towards beginning to rehabilitate the rail network 236km of which is under cautions.

The firm boasts of a rail network of 2 760 route kilometres.
Cautions have affected service delivery because of increased transit times as speed restrictions of between 10km per hour to 40km per hour are enforced on the caution areas.
An investment of $245 million, from the $400 million recapitalisation facility, is set to be channelled towards refurbishing the track.

Eng Mukwada said they intend to refurbish track infrastructure and signalling and communication through rehabilitation of mainline track, branch-line, yard track telecommunications, mainline signalling, facing points protection, level crossings protection, train integrity systems, yards local control and plant and equipment.

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