Source: NRZ unveils three-phase turnaround strategy – herald
Farirai Machivenyika
Senior Reporter
THE National Railways of Zimbabwe has adopted a three-phase turnaround strategy running from this year to 2030, under which it expects to move 12 million tonnes in freight and generate annual revenue of US$131,8 million by the end of that period.
This was said by NRZ deputy chief executive officer Mrs Ainah Dube-Kaguru in a presentation to Parliament’s Public Accounts Committee during its ongoing verification visits to entities under the Mutapa Investment Fund (MIF).
She said the first phase, which will run until the end of the year, will see NRZ move 3,01 million tonnes of freight, up from the 2,01 million tonnes it transported last year, while it expects to generate US$82 million in revenue, nearly double the US$44,41 million it made last year.
“We expect to achieve operating profitability through restoring core capacity, refurbishment of 540 wagons and locomotives, and plant servicing,” she said.
Mrs Dube-Kaguru said the parastatal also hoped to cut fuel costs by securing a long-term facility with Petrotrade.
Under phase two of the turnaround strategy, the parastatal expects to move 6,2 million tonnes of cargo to meet industry demand, achieve capacity surplus and begin purchasing new locomotives and wagons.
The company also intends to digitise its operations to improve efficiency.
“In phase three (2029–2030), we expect to have transformed into a full-service logistics provider, develop dry ports, modernise infrastructure and purchase new locomotives and wagons,” Mrs Dube-Kaguru said.
Meanwhile, the NRZ deputy chief executive officer said they hope to have finalised the US$115 million loan facility, which is being facilitated by the MIF, within the next six to eight months. The money will go towards the rehabilitation of infrastructure and the purchase of new equipment.
She added that negotiations for the release of the US$600 million facility with China Railway International Group, which are being conducted at Government-to-Government level, were ongoing.
Other sources of funding that NRZ is accessing include a US$6 million loan facility from Ecobank and US$20 million provided by the MIF as the shareholder.
Public Accounts Committee chairperson and Marondera Central legislator Mr Caston Matewu said it was important that NRZ be restored to its former glory, as it was critical to the attainment of the country’s development aspirations.
“The revival of NRZ is necessary for the country’s development and reduces the cost of doing business,” he said.
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