Maravi

(HERALD) Government mulls liberalising National Railways of Zimbabwe

Government mulls liberalising National Railways of Zimbabwe
Wednesday, 19 January 2011 21:01 Top Stories

The Government intends to open up the rail sector which is facing collapse due to deepening challenges at the National Railways of Zimbabwe, a Cabinet minister has said.

The NRZ, which enjoys a monopoly in the sector, is currently burdened with a myriad of challenges ranging from a depleted fleet to ballooning recapitalisation costs, now estimated at about US$274 million. The parastatal is also battling to restore the railways network, half of which the World

Bank has recommended for closure after deeming it to be dysfunctional. State Enterprises and Parastatals Minister Gorden Moyo told New Ziana that Government was considering a range of policies that included privatisation as efforts to turn around the sector.

“We are studying various methods of recapitalising the railways sector which include inviting new players,” he said.
“We need to get resources, financially, human resources and equipment,” he added.
Mr Moyo said Government had since formed a committee to craft strategies for revitalising the railways sector.

He said the committee comprising officials from the Ministry of Transport, the State Enterprises Restructuring Agency and the NRZ board would advise Government on possible means to restore viability in a sector critical to the performance of the economy.
“It is looking at various options of reviving the sector. As Government we will study those options and make a decision.
“The railways sector is a critical component. It is the engine of the economy,” said Mr Moyo, stressing that Government would certainly bring NRZ back on the rails.

The rail infrastructure has deteriorated markedly over the past decade when the country experienced sanctions-induced economic meltdown leading to sharp decline in service levels from a design capacity of 18 million tonnes per year to around 5,3 million tonnes currently.
About US$750 000 and US$20 000 is required to refurbish a locomotive and a wagon respectively.
Heavy industries heavily depend on the smooth operation of the railway sector for bulk movement of raw materials and products. — New Ziana.

Labels: PRIVATISATION

posted by MrK @ 6:39 PM