THE National Railways of Zimbabwe (NRZ) has moved nearly two million tonnes of freight this year and is hopeful that it will meet its 3,5 million tonnes target by the end of the year on anticipated improved performance of the mining sector.
Last year, the company moved less than three million tonnes of freight.
At its peak, NRZ moved 18 million tonnes of freight annually. However, its infrastructure has deteriorated in the last two decades, a situation made worse by a slump in economic activity that translated into low volumes for the railway transporter.
"We have moved about 1,5 million tonnes as of July and as we speak today we are on 1,9 million tonnes and we are on course of achieving our target of 3,5 million tonnes by the end of the year or we might miss it slightly," said NRZ public relations manager Mr Nyasha Maravanyika.
He said the poor performance of the mining sector in the first quarter of the year impacted negatively on the company's business.
"Should we fail to reach that target it would be because of a number of factors especially the poor performance of the mining sector. For instance the international price of chrome was low at the beginning of the year and it started to firm in April and we didn't move much during that period.
"It has also to do with the incessant rains, most mines were filled with water. The other factor is the issue of capitalisation, that's why we need recapitalisation because most of our equipment and rail needs to be rehabilitated and it has been affecting our efficiency," said Mr Maravanyika.
The company only has 60 operational locomotives, some as old as 50 years.
Mr Maravanyika said the company draws most of its freighting business from the mining sector as well as the agricultural sector.
"I haven't gone into details of segmenting the 1,9 million tonnes but the majority of that is from the mining sector, which is our crust as we move clinker, coal, ferro-chrome, chrome, coke and also we have phosphate rock from Nyazura," he said.
Mr Maravanyika said the company was looking forward to increasing the volume of freight it would move upon the successful implementation of its recapitalisation programme.
"The whole thing is sustaining the business and linking the country to the economy in every industry, be it in mining, manufacturing, agriculture and tourism. We are pinning our hopes on the recapitalisation programme. Going forward we need to move more (freight) once we get our equipment and rail network rehabilitated," he said.
NRZ entered into a strategic partnership with Diaspora Infrastructure Development Group (DIDG)/Transnet Consortium and last month the two parties met to deliberate on contractual obligations and financial closure.
The consortium emerged winner ahead of six other organisations which had been short-listed by the State Procurement Board.
The NRZ recapitalisation effort attracted immense interest from potential investors both local and international after the Government, through Cabinet, gave the company the go-ahead to go into the market to seek funding on 11 April 2017.
More than 80 companies attended a compulsory pre-bid conference in Bulawayo on 30 May 2017.
The recapitalisation project will involve the rehabilitation and renewal of plant, equipment, rolling stock, track, signalling and telecommunication infrastructure and the supporting information technology systems.
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