Zimbabwean firm to receive $3.6 million locomotives from India

A Zimbabwean private company is set to receive diesel-electric locomotives worth US$3.6 million from India. The locomotives are being supplied by RITES Limited, a globally recognised engineering and consultancy firm specialising in transport infrastructure and related technologies.

NewZimbabwe reports that according to a regulatory filing by RITES, the contract involves the supply of operational Cape Gauge diesel-electric locomotives measuring 1,06 mm. The delivery and execution of the order are scheduled to take place within three months.

"The order has been awarded by an international entity and does not fall under related party transactions," RITES stated, clarifying that neither the promoter nor the promoter group has any interest in the awarding entity.

Further details indicate that the contract was awarded by Berhard Development Corporation (BDC) (Private) Limited, a Zimbabwean firm engaged in multiple sectors including mining, manufacturing, real estate, and infrastructure. BDC has led projects such as the Bern Win Utopia Eco Smart City, Ber Pig Iron and Steel Plant, Minerals Processing and Trade Hub, and the Inland Dry Port, as well as initiatives to improve road, rail, and air cargo transport networks.

It remains unclear whether the locomotives are intended for public or private use, though BDC collaborates with partners such as the Zimbabwe Investment Development Agency (ZIDA) on sustainable development projects.

The transaction is backed by Green Dollar Coin UK, a UK-registered financial institution, secured by a US$3 billion Medium-Term Note (MTN) Bond, which provides financial assurance and liquidity for the project.

The arrival of the locomotives is expected to bolster Zimbabwe's rail transport capacity, supporting industrial, commercial, and logistical operations across the country.