Japan businesspeople interested in NRZ

THE Japanese ambassador to Zimbabwe, Yonezo Fukuda, has said that business people in his country have expressed interest in rehabilitating the cash-strapped National Railways of Zimbabwe (NRZ) in a move that could ease transport woes distressing local industries and the general public.

Fukuda told The Financial Gazette this week that the interest in NRZ was real, and that Japanese Railways, a former parastatal which has been privatised, could partner the country's struggling Zimbabwean railway firm.

"Yes, we are interested in the railway company," said Fukuda at a private dinner this week.

His second secretary, Masa Iida, explained that an entrepreneur involved with Japanese Railway was part of the Japanese business delegation which came to Zimbabwe in August last year and had expressed interest in NRZ.

"There was a business mission last year and one guy from Japanese Railways is interested in rehabilitating NRZ in some kind of partnership," said Iida.

According to the Japanese embassy official, Japan Railway is the biggest railway company in that country.

The delegation, organised under the Alliance Forum Development Programme (AFDP) by the founder, Joji Hara, comprised of Japanese company representatives in the railway, energy, water and sanitation, pharmaceutical and other economic sectors. The delegation held discussions with the Confederation of Zimbabwe Industries (CZI) as well as the Zimbabwe government officials.

It could not be ascertained what progress had been made by NRZ or government in organising talks with the interested investor at the time of going to press.

NRZ is one of the cash-strapped government companies that are operating way below 30 percent capacity due to lack of recapitalisation.

Previously, a number of investors have expressed interest in the entity although nothing concrete has emerged.

NRZ's inefficiency has often been sighted as the missing link in the economic growth matrix as moving goods by rail is cheaper than by road.

But Fukuda indicated that the politics of the country remained a sore point discouraging potential investors who are currently employing a wait and see attitude. He, however, expressed hope that with political stability, business deals on hold could come through to the benefit of both countries.

Financial support is required in the revival of the NRZ especially in the refurbishment of the wagons and related infrastructure. The firm is facing a serious lack of resources to maintain and replace its dilapidated infrastructure, which has been in use for well over 50 years.

Early January, Deputy Minister of Mines, Gift Chimanikire, said that Japan Oil, Gas and Metals National Corp-oration (JOGMEG), the Japanese energy agency tasked with securing oil and gas supplies and mineral resources, plans to import as much as 15 million tons of coal annually from Zim-babwe, tonnage dem-and far exceeding what the country currently produces.

Chimanikire confirmed that he met with representatives of JOGMEG in December and they are exploring ways of exporting 15 million tonnes annually.

He said what remained to be done was capacitation of Hwange Colliery Company and ensuring that all special grant issued in 2010 are utilised.

The exports route would make use of rail transport via the Beira corridor to facilitate movement of goods from the Indian Ocean port of Mozambique as the commodities are shipped to Japan.