Railway system total upgrade requires US$1.2 billi...

Railway system total upgrade requires US$1.2 billion

Oscar J Jeke

The National Railways of Zimbabwe has confirmed plans to receive funding for an initial upgrade of its railway system amounting to US$$431 million from its Chinese partners and the Afreximbank that will see 78km of rail upgraded from Mvuma to Dabuka, with a recent feasibility study revealing that the national railway company needs about US$1.2 billion for a total upgrade.

The initial upgrade funds are expected soon with the recent feasibility study by Chinese firm, TransTech, showing positive inputs into commencement of works, that include enhancing modernisation of rail system and infrastructure, that improves freight movement and transportation of minerals, aided by provision of locomotives.

According to reports, the current upgrade package includes provision of 21 locomotives, 2 650 wagons, 78km rail upgrade from Mvuma to Dabuka with traffic estimates pinned at around 2 million tonnes per year on the local market, and an export of 600 000 tonnes per year, dominated by the production schedule of the soon to be running Manhizhe Steel plant.

Finance minister, Mthuli Ncube in a recent interview, said that the partnership with the Chinese firm is of advantage to Zimbabwe as it will benefit from expertise and the company’s financial muscle to improve a number of aspects that include upgrading rolling stocks and signaling among others.

“We believe that we could make use of their expertise and financial muscle to improve the NRZ. It needs an upgrade in the fixed stocks as well as rolling stocks and signaling,” he said.

NRZ Public Relations and Stakeholder manager, Andrew Kunambura confirmed the conclusion of the feasibility study that paves way for a report and finalisation of the deal.

“They were doing a feasibility study which they have now concluded, and they will present a report to their principals and to us for analysis. That will then inform what decision both parties will arrive at,” Kunambura said.

Sources have told Zim Now that the deal is set to sail through with plans to target the railway line that connects to Manhizhe in Mvuma to different market ports including the export lines.