Business / Local
NRZ courts foreign investors
16 Jun 2013 at 06:23hrs | Views
THE National Railways of Zimbabwe (NRZ) is at an advanced stage of negotiations with potential investors for the injection of fresh capital that would result in the struggling rail carrier operating optimally by year-end.
Transport, Communications and Infrastructural Development deputy minister, Morgan Komichi was not at liberty to name the investors.
"The negotiations are currently a work in progress. We are looking forward to putting the NRZ back on track by the end of this year. In this regard, we are working on securing a comprehensive deal," he said.
The state utility requires at least US$2 billion for its short, medium and long-term capitalisation projects.
The proposed injection of fresh capital comes after the parastatal has been operating below capacity, weighed down by under-capitalisation, ageing equipment and waning business.
Speculation has been rife since 2011 that government sought to engage Chinese investors in the parastatal's resuscitation but no deal has reportedly been clinched as government guarantees, which have not been provided yet, are the last hurdle to the transaction.
The track infrastructure which consists of a rail track, signalling and telecommunication equipment has continually been vandalised over the years, raising questions over the parastatal's ability to rehabilitate and maintain its railway infrastructure.
Industries such as the energy and mining sectors need the railway network to sustain operations transporting commodities such as coal and coke products, petrol, diesel, aviation fuel, iron and steel, limestone and chrome ore, among others.
Transport, Communications and Infrastructural Development deputy minister, Morgan Komichi was not at liberty to name the investors.
"The negotiations are currently a work in progress. We are looking forward to putting the NRZ back on track by the end of this year. In this regard, we are working on securing a comprehensive deal," he said.
The state utility requires at least US$2 billion for its short, medium and long-term capitalisation projects.
The proposed injection of fresh capital comes after the parastatal has been operating below capacity, weighed down by under-capitalisation, ageing equipment and waning business.
Speculation has been rife since 2011 that government sought to engage Chinese investors in the parastatal's resuscitation but no deal has reportedly been clinched as government guarantees, which have not been provided yet, are the last hurdle to the transaction.
The track infrastructure which consists of a rail track, signalling and telecommunication equipment has continually been vandalised over the years, raising questions over the parastatal's ability to rehabilitate and maintain its railway infrastructure.
Industries such as the energy and mining sectors need the railway network to sustain operations transporting commodities such as coal and coke products, petrol, diesel, aviation fuel, iron and steel, limestone and chrome ore, among others.
Source - standard
