eBusiness Weekly
The National Railways of Zimbabwe complete 120 years of “moving the nation” on 4 November 2017. This week we celebrate their contribution to the development of the country.
Where did it all start?
The development of the railways was initially dictated by the need to link the then-Rhodesia with sea-ports in Mozambique and South Africa and then to provide transport between the towns, farms and mines in the country.
Imperialist businessman Cecil Rhodes knew the railways were essential for his plans for the expansion of British power and influence in Africa and on granting of the Rudd Concession in 1888 by King Lobengula, he began raising capital and hiring necessary expertise to build and operate the line.
In September 1892 the firm of George Pauling & Co., on behalf of the Beira Railway Co., began building a 2ft. gauge line from Fontesville, near Beira, to Mutare. Although it was only 330km long, the malaria-ridden swamps of the Pungwe and Revue Flats, man-eating lions, steep gradients and disease-infested forests hindered construction to the extent that the line became known as the “railway of death” as many workers died.
It would take six years to complete. The development of Zimbabwe’s railway network was not off to a good start!
How many railway companies were there?
Initially the railways were private, independent businesses, established by Rhodes and his investors to construct and operate sections of the line.
This is because the territory of Zimbabwe was originally the private property of the British South Africa Company (BSACo), and not a British colony, allowing greater freedom of enterprise and thus greater potential profits than might have otherwise been the case.
It took many years for the 10 different companies to be merged into a single entity known as Rhodesia Railways, now National Railways of Zimbabwe.
The first was the Beira Railway Company (Fontesville, Mozambique to Mutare) on 12 July 1892, followed by the Bechuanaland Railway Company (Vryburg, South Africa to Bulawayo) on 24 May 1893.
The Mashonaland Railway Company was formed on 13 April 1897 to take over the running of the line from Mutare to Harare. Bechuanaland Railway Company was renamed Rhodesia Railways on 1 June 1899 while the Beira and Mashonaland Railways a few years later.
Not many people today may realise that much of the section from Vryburg to Bulawayo was originally operated by the Cape Government Railways (now Transnet, South Africa) until 1959.
The whole system was renamed Rhodesia Railways in 1927 and was nationalised as a Statutory Body in 1947 by the Government at a cost of £23,642,266 to buy out the shareholders. The Mozambique section was sold to that government in 1949, the Botswana section was relinquished in 1987 and Zambia Railways was created in 1967.
Share some significant developments.
The official birth of the railway in Zimbabwe is considered to be on 04 November 1897 when the first passenger train steamed into Bulawayo, stopping at a makeshift station built on the training grounds of the feared Ingubo regiment. (That same day, Bulawayo switched on its electric light system, at a time when London was still using gas-power).
The first train had actually reached Bulawayo on 19 October 1897. Zimbabwe’s rail system was built in sections as the line from Beira reached Mutare on 4 February 1898 and was then extended to Harare, officially opening on 22 May 1899. Bulawayo and Harare were linked by December 1902, Hwange was reached in 1903 and Victoria Falls a year later.
Ndola and thus the Copperbelt were joined to the network in 1909. Several branch lines were built, most before World War I, but the last was the section from West Nicholson to Beitbridge, commissioned on 1 September 1999. Electrification of a section of line from Harare to Gweru was completed in 1983 to world class standards.
Were there ever any plans which never happened?
The expansion of the railways was not a straightforward process and many, many proposals were never enacted. Perhaps the most significant due to the repeated mention it has received since 1980, is the idea to link the line from Chinhoyi to the Kafue in Zambia.
The benefits seem obvious as it would save 824km distance when transporting between Beira and Ndola and provide a second rail bridge over the Zambezi, handy in case of the unthinkable happening at Victoria Falls.
The potential route would require four million tons of rock to be excavated and another four to be filled in as embankment taking the cost of laying the line to astronomical levels. The construction of the TanZam (Uhuru) Railway in the 1970s connecting Zambia to Tanzania’s ports makes this proposed line through Zimbabwe an unnecessary expense.
Another major line that never happened was a 1930 proposal to connect Walvis Bay, Namibia, to Matetsi and with a smaller branch to Bulawayo, a distance of over 1,000km that would have inextricably linked the three countries involved. A connection to the west coast of Africa was useful for the then-Rhodesias because their main trading partner was the UK.
The expected financial costs were not matched by the anticipated traffic revenue in the early days and the project was abandoned. Worthy of mention here is the proposed 22km line to connect Harare with Chitungwiza, first mooted in 1987. Tenders were called for the construction of an electrified line in 1995 with a 60,000 passenger capacity but the project stalled with the economy.
What effect did all of the expansion have?
It is no exaggeration to say that the railways were the backbone of Zimbabwe. A brochure released for the 100th Anniversary put it best, claiming, the railway was “the most powerful driving force of all in the opening up and development of a region of Africa of outstanding promise.
It helped to lay the foundations of modern Zimbabwe.” The main benefit was the cheap, quick and efficient transport of goods and passengers across the region as well as moving essential raw materials around for industries.
Think coal from Hwange, copper from Ndola, iron and steel from Redcliff, cement from multiple places, wheat and corn from Mashonaland, cattle from Matabeleland, sugar from Triangle, fuels from the coast, etc.
For many years, the railways were among the largest of companies in the country, employing over 22,000 people at their peak. The industrial training many people received while working for NRZ – in mechanics, electrical engineering, construction, metalworking, agriculture, management and commerce – has seen them in good stead over their careers later in life. The National Railways of Zimbabwe Contributory Pension Fund is perhaps one of the best in Zimbabwe with a solid performing asset base and good management.
And the role of NRZ as property developers?
Over the last century, NRZ and the NRZ Pension Fund have developed or bought several properties across Zimbabwe that we all benefit from as residents. These include the imposing Karigamombe Centre, Trust Towers, Chisipite Shopping Centre and Beverly Court in Harare, the Bulawayo Centre, NRZ Headquarters, Raylton Suburb, Ascot Centre and Holiday Inn in Bulawayo and arguably the crown jewel, the Victoria Falls Hotel.
Almost all of these assets continue to be used effectively, mainly to generate revenue for the Pension Fund which continues to look after thousands of loyal former employees. Recent calls for these properties to be sold to recapitalise the railways are shortsighted as the benefit of their long-term ownership has been indisputably proved.
It’s not all good news.
By their own account and in news reports it is obvious that not all is well at NRZ, despite reports of the “mega-deal” (see below). It is hamstrung by massive debt, ageing equipment and infrastructure that has not been maintained to adequate standards and a lack of consumer and investor confidence in its services.
At least US$100 million is owed in salary arrears and another US$248 million in unserviced debt.
The parastatal – now operating at 8% capacity utilisation – is currently transporting less than six million tonnes of goods per annum out of 80 million tonnes system design. Due to a depressed market and reduced capacity. In 2013, it moved 3,6 million tonnes of goods against a target of 6 million tonnes.
Comparatively, in 1998, the NRZ moved 18 million tonnes. At least 385,5km of rail track (of a total 2,759km) needs urgent rehabilitation while all signalling and communications equipment need upgrade and replacement.
There has been a steady decline in employment at the parastatal too, with only about 4,500 people working there today from a high of over 20,000 in 1980 and 9,500 in 2003. The electrification scheme has been abandoned due to theft and damage of infrastructure and equipment and diesels once again rule the roost.
We’ve heard about another “mega-deal” to “save” NRZ.
The latest in a long line of agreements and negotiations, Cabinet recently approved a US$400 million investment proposal in NRZ by a consortium led by the Diaspora Infrastructure Development Group (DIDG) and South Africa’s Transnet, the winners out of 82 tenders.
Transport and Infrastructure Development Minister Joram Gumbo recently told The Sunday Mail Business that the deal had experienced some difficulties after disagreements in Cabinet, but in mid-October, approval was given to proceed.
The consortium has pledged to deliver 480 wagons and 14 locomotives “immediately after the signing of the memorandum of understanding” although this remains to be done.
There are also plans to run fast passenger and special tourist trains from Harare to Victoria Falls to compete with local airlines and improve access across the country.
And into the future?
The resuscitation of NRZ is an essential part of Zimbabwe’s development post-2018. As shown by the African Development Bank in their 2011 report on Zimbabwe, it is cheaper and more environmentally sound to ship by rail than road. By rail it costs $0,03 per tonne/kilometre compared to $0,07 to $0,12 by road.
This should be the greatest argument to invest in the railways as decongesting the roads by removing the massive need for heavy haulage trucks will help reduce road carnage and ensure a longer lifespan for the surfaces.
Zimbabwe remains a crucial hub in the transport network of southern Africa and any revival of NRZ will factor into the wider development plans of several countries.
Rail infrastructure is vital to improve trade between African countries, which stood at just 13% of the total in 2015, according to the African Union.
