Business / Companies
$2 billion needed to resurrect NRZ
02 Jun 2013 at 12:31hrs | Views
NRZ general manager, Mike Karakadzai said the once vibrant parastatal needed about $2 billion for its long-term rehabilitation of infrastructure.
The company is facing the daunting task of improving its communication signals that are too old and need replacement.
NRZ's track system is also in disarray.
At its peak in 1998, NRZ used to carry goods in excess of 18 million tonnes compared to 3,7 million tonnes carried in 2011.
NRZ has about 65 locomotives, 3 271 wagons, nine cabooses and 158 coaches against the optimum average requirement of 83 locomotives, 4 262 wagons, 17 cabooses and 145 coaches required to viably run the company.
Minister of Transport and Infrastructure Development, Nicholas Goche said they were looking for private partners to revive the ailing company.
"We are looking for a partner to work with the government in reviving the company," he said.
The parastatal is one of the 10 loss-making companies that have been marked for restructuring and possible privatisation.
Bulawayo-based economist, Eric Bloch said the privatisation of the parastatal was long overdue as the institution continued draining the government fiscus.
He said privatisation was necessary to bring new partners that could bring the much needed capital and technology.
"For the speedy recovery of such sectors in the economy, we must privatise the parastatal. It needs new partners who can recapitalise them and bring new technology and equipment wanted for revival and be able to service the economy," said Bloch.
The company is facing the daunting task of improving its communication signals that are too old and need replacement.
NRZ's track system is also in disarray.
At its peak in 1998, NRZ used to carry goods in excess of 18 million tonnes compared to 3,7 million tonnes carried in 2011.
NRZ has about 65 locomotives, 3 271 wagons, nine cabooses and 158 coaches against the optimum average requirement of 83 locomotives, 4 262 wagons, 17 cabooses and 145 coaches required to viably run the company.
"We are looking for a partner to work with the government in reviving the company," he said.
The parastatal is one of the 10 loss-making companies that have been marked for restructuring and possible privatisation.
Bulawayo-based economist, Eric Bloch said the privatisation of the parastatal was long overdue as the institution continued draining the government fiscus.
He said privatisation was necessary to bring new partners that could bring the much needed capital and technology.
"For the speedy recovery of such sectors in the economy, we must privatise the parastatal. It needs new partners who can recapitalise them and bring new technology and equipment wanted for revival and be able to service the economy," said Bloch.
Source - standard
