News / National
NRZ targets US$100m revenue in 12 months
04 Jul 2024 at 04:02hrs | Views
The National Railways of Zimbabwe (NRZ) aims to generate approximately US$100 million in revenue by 2025 by leveraging its extensive real estate holdings. While cargo transportation remains a key revenue stream, expected to grow from US$56 million in 2024 to US$89.1 million in 2025, NRZ plans to maximize revenue from previously underutilized real estate. The company expects rental and lease revenue to increase from US$6.3 million this year to US$10.3 million in 2025 after addressing illegal occupancy and underpayments by land barons.
NRZ's efforts to reclaim land in Lochinvar and Mutare have significantly boosted lease revenue, which has risen from US$224,964 per month in 2021 to US$666,959 currently. The company is now focused on developing a smart city project at Wollendale Farm with government support for relocating current occupants.
Historically, NRZ has faced declining revenue due to aging infrastructure and a shrinking fleet, with cargo volumes dropping from 12 million tonnes in the 1990s to 2.3 million tonnes currently. The company's route network, spanning 2,760 kilometers, suffers from maintenance backlogs, with numerous speed restrictions and yard accidents due to rotten sleepers and vandalism.
NRZ's strategic plan for 2020-2030, in line with Vision 2030, aims to stabilize and modernize its operations. This plan includes short-term, medium-term, and long-term initiatives to recapitalize, reorganize, and transform NRZ into a modern and efficient transporter of choice for bulk passengers and freight, particularly supporting the US$12 billion mining industry.
The inefficiencies of the railway system have increased reliance on road transport, leading to premature road degradation and higher transportation costs, disrupting commerce and hindering economic activity.
NRZ's efforts to reclaim land in Lochinvar and Mutare have significantly boosted lease revenue, which has risen from US$224,964 per month in 2021 to US$666,959 currently. The company is now focused on developing a smart city project at Wollendale Farm with government support for relocating current occupants.
Historically, NRZ has faced declining revenue due to aging infrastructure and a shrinking fleet, with cargo volumes dropping from 12 million tonnes in the 1990s to 2.3 million tonnes currently. The company's route network, spanning 2,760 kilometers, suffers from maintenance backlogs, with numerous speed restrictions and yard accidents due to rotten sleepers and vandalism.
NRZ's strategic plan for 2020-2030, in line with Vision 2030, aims to stabilize and modernize its operations. This plan includes short-term, medium-term, and long-term initiatives to recapitalize, reorganize, and transform NRZ into a modern and efficient transporter of choice for bulk passengers and freight, particularly supporting the US$12 billion mining industry.
The inefficiencies of the railway system have increased reliance on road transport, leading to premature road degradation and higher transportation costs, disrupting commerce and hindering economic activity.
Source - The Herald
