Govt expects NRZ to improve carrying capacity

Discussions relating to capital raising for the resuscitation of the National Railways of Zimbabwe are at an advanced stage with Government expecting the national rail carrier to improve its carrying capacity in the short term.

The negotiations for finance for NRZ have been made a top priority given its centrality to Zimbabwe's logistical map. As such, a number of initiatives are being pursued including courting local and international financiers and corporates for joint venture partnerships or Public Private Partnerships, among other options.

Vice President Emmerson Mnangagwa told the business community during a tour of Bulawayo's food processing sector players last week that the issue of the NRZ has been adopted as one of four priority areas for the revival of the economy, particularly in the northern region.

The NRZ last year appointed Deloitte and Touche as transaction advisors to push its capital raising exercise both locally and offshore to secure about $400 million required for re-capitalisation.

The funds raised would be used towards boosting the rail company's locomotives, wagons, track rehabilitation and signalling.

NRZ requires short-term recapitalisation to boost its carrying capacity which has declined to around 3,4 million tonnes in 2015 from a high of 9,4 million tonnes in 2000 mainly due to the use of antiquated logistics software, ageing fleet of locomotives, wagons and tracks.