News / National
New dedicated railway line for US$1bn steel project
08 Mar 2022 at 05:39hrs | Views
A NEW dedicated railway line will be established to connect the US$1 billion stainless steel plant in Mvuma to a new port in Mozambique to move exports on time and in quantity.
The venture is inviting investors to come on board for this, as well as rehabilitating and upgrading the existing rail networks.
The proposed investment will also boost bulk railway traffic between Mozambique and Zimbabwe which will open more opportunities for mining and manufacturing, as well as help the tourism sector and unlock numerous downstream job opportunities.
Transport and Infrastructural Development Deputy Minister, Mike Madiro, gave details of the potential investment in Dubai, on Sunday, where a Zimbabwean delegation drawn from tourism and transport sectors had a two-day engagement with potential investors and the Diaspora community.
Top Chinese steelmaker Tsingshan Holding Group is building the giant iron ore and carbon steel plant following completion of preliminary groundwork and electricity connection to the project site in Manhize area.
The project is expected to result in Zimbabwe being home to the largest steel plant in Southern Africa, if not the whole continent, and the creation of up to 6 000 jobs.
"This is a multi-million-dollar investment in stainless steel and because of the friendly business environment created under the vision of President Mnangagwa, Tsingshan has found it business worthy to establish in Zimbabwe in a big way," said Deputy Minister Madiro.
"They are proceeding to build a dedicated railway line to the ports in the Indian Ocean in Mozambique. They will be developing a new railway project to Mozambique where they are going to develop a new port."
With a lot of the preliminary work already done, Tsingshan has moved onto the Mvuma site with the construction of administration offices nearing completion and access roads built to improve connectivity.
Although construction of the furnaces is at infancy stage, the investor has already set up a cement mixing plant.
Deputy Minister Madiro said the proposed railway would open wider business avenues downstream, and urged Middle East investors who attended the tourism and infrastructure conference to come on board.
"So, you can imagine the prospects for tourism growth given the extra rail link between Zimbabwe and Mozambique and we are saying this is an exciting moment for investors to come to Zimbabwe.
"This is going to broaden opportunities in terms of synergies, which makes a lot of business sense.
"I am excited this project is going to impact positively in Manicaland through job creation and provision of social service and recreational facilities in areas like Nyanga, Vumba and Chimanimani, which will improve revenue streams," he said.
The Mvuma steel project would see Zimbabwe becoming a key steel supplier to the export market in addition to meeting its own domestic needs, thereby cutting imports.
Deputy Minister Madiro said besides the proposed railway project, the country was also keen on investment partnerships in rehabilitating its entire railway infrastructure including new projects on mass transportation, which will further modernise the country's economy.
The venture is inviting investors to come on board for this, as well as rehabilitating and upgrading the existing rail networks.
The proposed investment will also boost bulk railway traffic between Mozambique and Zimbabwe which will open more opportunities for mining and manufacturing, as well as help the tourism sector and unlock numerous downstream job opportunities.
Transport and Infrastructural Development Deputy Minister, Mike Madiro, gave details of the potential investment in Dubai, on Sunday, where a Zimbabwean delegation drawn from tourism and transport sectors had a two-day engagement with potential investors and the Diaspora community.
Top Chinese steelmaker Tsingshan Holding Group is building the giant iron ore and carbon steel plant following completion of preliminary groundwork and electricity connection to the project site in Manhize area.
The project is expected to result in Zimbabwe being home to the largest steel plant in Southern Africa, if not the whole continent, and the creation of up to 6 000 jobs.
"This is a multi-million-dollar investment in stainless steel and because of the friendly business environment created under the vision of President Mnangagwa, Tsingshan has found it business worthy to establish in Zimbabwe in a big way," said Deputy Minister Madiro.
"They are proceeding to build a dedicated railway line to the ports in the Indian Ocean in Mozambique. They will be developing a new railway project to Mozambique where they are going to develop a new port."
Although construction of the furnaces is at infancy stage, the investor has already set up a cement mixing plant.
Deputy Minister Madiro said the proposed railway would open wider business avenues downstream, and urged Middle East investors who attended the tourism and infrastructure conference to come on board.
"So, you can imagine the prospects for tourism growth given the extra rail link between Zimbabwe and Mozambique and we are saying this is an exciting moment for investors to come to Zimbabwe.
"This is going to broaden opportunities in terms of synergies, which makes a lot of business sense.
"I am excited this project is going to impact positively in Manicaland through job creation and provision of social service and recreational facilities in areas like Nyanga, Vumba and Chimanimani, which will improve revenue streams," he said.
The Mvuma steel project would see Zimbabwe becoming a key steel supplier to the export market in addition to meeting its own domestic needs, thereby cutting imports.
Deputy Minister Madiro said besides the proposed railway project, the country was also keen on investment partnerships in rehabilitating its entire railway infrastructure including new projects on mass transportation, which will further modernise the country's economy.
Source - The Herald
