News / National
NRZ to get 14 Chinese locomotives
13 Dec 2012 at 06:04hrs | Views
The Government has secured funds for the National Railways of Zimbabwe (NRZ) to pay off the 14 locomotives being manufactured in China, a Cabinet Minister has said.
The NRZ deposited $2,9 million last year but the Chinese firm insisted on full payment for the locomotives, which are going for $29 million.
Transport and Infrastructure Development Minister Nicholas Goche said the locomotives would be delivered early next year.
"Payment for the locomotives has been secured and they will be delivered from China early next year," he said. Minister Goche, however, did not reveal the source of the funds.
The NRZ currently has about 70 locomotives against the optimum average requirement of 83.
Minister Goche said despite challenges, particularly capital constraints, the rail sector was gradually improving.
He noted that in 2009 the railway system was operating at an average of 45 000 tonnes per week or 2,3 million tonnes per year and this has since grown to between 80 000 and 90 000 tonnes a week or 4,9 million tonnes per year.
"The break even capacity is five million tonnes per year signalling positive developments in the railway industry," said Minister Goche.
A host of challenges beset the NRZ, including capital constraints and a limited revenue inflow which has inhibited replacement and maintenance of ageing infrastructure.
The bulk of its fleet has outlived its lifespan with some locomotives and wagons more than 40 years old.
The NRZ is one of 10 parastatals that the Government has earmarked for privatisation and commercialisation to restore viability.
The NRZ deposited $2,9 million last year but the Chinese firm insisted on full payment for the locomotives, which are going for $29 million.
Transport and Infrastructure Development Minister Nicholas Goche said the locomotives would be delivered early next year.
"Payment for the locomotives has been secured and they will be delivered from China early next year," he said. Minister Goche, however, did not reveal the source of the funds.
The NRZ currently has about 70 locomotives against the optimum average requirement of 83.
Minister Goche said despite challenges, particularly capital constraints, the rail sector was gradually improving.
He noted that in 2009 the railway system was operating at an average of 45 000 tonnes per week or 2,3 million tonnes per year and this has since grown to between 80 000 and 90 000 tonnes a week or 4,9 million tonnes per year.
"The break even capacity is five million tonnes per year signalling positive developments in the railway industry," said Minister Goche.
A host of challenges beset the NRZ, including capital constraints and a limited revenue inflow which has inhibited replacement and maintenance of ageing infrastructure.
The bulk of its fleet has outlived its lifespan with some locomotives and wagons more than 40 years old.
The NRZ is one of 10 parastatals that the Government has earmarked for privatisation and commercialisation to restore viability.
Source - New Ziana.
