'Locals can run Zambia Railways'
By Moses Kuwema
Thu 13 Sep. 2012, 10:27 CAT
TRANSPORT expert Henry Chipewo says Zambians are capable of running Zambia Railways Limited efficiently as long as there is no political interference. And Chipewo has advised the government to consider investing massively in rail transport to avoid the huge costs involved in road maintenance.
Meanwhile, Railway Workers Union of Zambia general secretary Elias Mwila says his union will for now watch the happenings at Railway Systems of Zambia silently.
Chipewo, a former Tanzania-Zambia Railway Authority managing director said the country had people that were capable of running Zambia Railways Limited and that there was no need to look up to outsiders.
"We can run this rail line and more efficiently for that matter. Zambia Railways failed because of politics. Zambia Railways was over-bloated. Let us run this rail line professionally. We don't need whites to help us run this rail line, we can run it and I want to challenge government that Zambians can actually run this rail more efficiently provided they allow these technocrats to run the rail line. It is just that we don't trust each other as Zambians. Once we start having faith in our own people, and give them targets I can assure you that Zambians can grow this rail line," Chipewo said.
He urged the government to assemble a group of rail experts in Zambia whom he said would be ready to show everyone that they could run Zambia Railways Limited.
And Chipewo said Zambia had lost out since the time that the RSZ took over Zambia Railways.
He said RSZ had killed the training school in Kabwe, resulting in the country not having too many rail experts and train operators.
"The concession agreement was 90 per cent skewed in favour of RSZ. That agreement does not give RSZ any obligation to improve the rail systems…in terms of modernising the equipment, improving internal operations, both freight and passenger. It was more financial than operational. The Zambian people were looking for a rail line that would perform much better than Zambia Railways, that is to improve the infrastructure, the rail truck from what they were like. We were looking forward to a situation where traders could be able to consign their goods to the train as opposed to moving their goods through the road," he said.
Meanwhile, Chipewo said Zambia had the capacity to develop its rail transport which would significantly reduce the rate of accidents in the country, further pointing out that maintenance of railway lines is many times cheaper than maintaining roads.
"…For example, rehabilitating a kilometer of a tarred road costs about K2 billion while a kilometer of a railway line costs slightly over K100 million…," he said.
"And using railway transport can make us to have less accidents in this country. We need to have a mass transit system connecting people from one point to the other. These trains can move masses of people at a cheaper cost," said Chipewo.
"And we have plenty water which can generate electricity that can then power our trains, we can have electric trains linking people throughout the country. This is workable, all we need is a proper transport policy."
And when asked to comment on the government's decision to terminate the concession agreement with the RSZ, Mwila said RWUZ was following things silently.
"For the moment, the best we can do is to follow the issues silently.
We don't want to disturb anything. Our interest is not just a loose comment, we want to see what have we benefited as workers? When we answer all those questions then we say it is good. We cannot jump just because Mr President Michael Sata made the announcement. There are no ingredients in what he said, what is happening on the ground is something else so we will wait and see what is good for the workers," said Mwila.
Labels: HENRY CHIPEWO, ZAMBIA RAILWAYS
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Deal with corruption in road sector, expert advises govt
By Kabanda Chulu in Kitwe
Tue 16 Feb. 2010, 04:00 CAT
THE government should address increasing corrupt activities in the road construction sector where consulting engineers and supervising contractors are certifying poorly constructed roads for payments, transport and logistics expert Henry Chipewo has observed.
And Chipewo has said it will not be prudent for Zambia to borrow money from the World Bank at higher interest rates to finance reconstruction of roads damaged by heavy rains leading to copper mining areas.
Rail infrastructure is the best mode of transporting inputs into the mining areas and also for transporting finished copper cathodes for export market.
But the current state of rail infrastructure makes moving goods by rail highly uneconomic resulting in the bulk of cargo being ferried by road, occasioning greater expense both in terms of cost of freight and the broader national cost of road maintenance and rehabilitation.
Despite being a cheaper mode of transport, the railway systems in the country is in a dilapidated state due to factors ranging from inadequate government transport policies on the transport sector resulting in inefficient operations as well under capitalisation.
This has led to an increase in the cost of doing business in the country.
Chipewo said last week that it would not be prudent for Zambia to borrow money from the World Bank at higher interest rates to finance the rehabilitation or reconstruction of roads damaged by heavy loads of copper in the Copperbelt mining towns.
“World Bank loans are known to be repaid over many years of up to 40 years and by the time they are repaid, the roads will have been damaged and repaired many times over rendering the investment a sheer waste of public funds and an imposition of a debt burden on the already impoverished Zambians and a complete misallocation of funds needed for meaningful development,” Chipewo said.
He said the British colonial government was wise when it realised right at the discovery of mineral resources in Northern Rhodesia that rail transport was better to carry the heavy metals from the mines to international markets.
“They also realised that to move the ore between mines for processing cost effectively, the best logistics and means of locomotion was rail transport,” he said. “This logic was and is still sustainable even today from the civil or highway engineering and transport economics point of view.”
He said from the engineering point of view, roads were constructed to a particular grade to carry a certain dynamic weight.
“The mixture of the elements must be in such a proportion that once constructed a road can easily sustain a particular weight exerted on it such as 20, 30, 40, 50, 60 tonnes and to design and build a road that will carry a load of 60 tonnes and last for 20 years or more without developing potholes goes at a premium and will cost not less than US $5 million or K23 billion per kilometer, a toll order for a country such as ours,” Chipewo said.
“Secondly, given the level of corruption in the road sector, there is just no way as a people we can responsibly spend such amounts of money on the roads to last 20 years save for Ndola-Kitwe dual carriage way, Kapiri-Ndola and Kapiri-Serenje roads which were built before we became hopelessly corrupt. What is happening now is that, roads fail and develop potholes within the liability defect period of one year and no eyebrows are raised by authorities responsible. In those instances, it means that, 30 or 50 per cent of elements have been reduced so that the money saved can go towards ‘oiling’ those who were awarding contracts, the so called consulting engineers, supervising contractors and a tandem of others who will certify poorly constructed roads for payment commissions.”
He said economically, the railway sector was the best means to carry heavy and bulk traffic in any economy.
“This infrastructure, fortunately already exists on the Copperbelt. There are branch lines linking all mining areas save for Ndola-Luanshya branch line which was recklessly allowed to be vandalised because of lacking knowledge and appreciation of the importance of a railway in developing an economy,” Chipewo said.
“Assuming that the total length of the branch railway lines on the Copperbelt up to Kapiri Mposhi to link to TAZARA Tanzania Zambia Railways Authority is 500 kilometres, the over estimated cost of routine and periodic maintenance of the track is around US $500,000 per annum a pittance compared with the road.”
Chipewo explained that over US $1 million is spent just to advertise a 500 kilometre-road contract, evaluation of tenders and for a contractor to mobilise and move on site.
“Then add the cost of setting up camp with such conveniences as DStv, chalets, generators for electricity, among other things, another US $1 million is spent and lastly add the US $ 1.5 million per kilometre which includes ‘graft’ cash, the total cost to the taxpayer is a whooping US $752,000,000 and in kwacha terms I do not know what it is! And within one year, the country will be crying for another disbursement to start the cycle of wastefulness as the roads will have developed potholes again! In terms of operations and cost reduction strategy, it is cheapest to use the railway,” said Chipewo who is also former TAZARA managing director.
He said one locomotive engine on inter-mine operations can haul up to 20 wagons or more in one operation carrying 50 tonnes each, an equivalent of pulling 36 truck and trailers.
“Hence, in terms of operations and maintenance costs, a railway enjoys unparalleled massive economies,” said Chipewo. “My advice in as far as this issue is concerned is that, let us concession the branch lines on the Copperbelt and give them to Zambians to run who will at the same time create employment and provide a service to the mines at a fee and save the country from contracting unnecessary loans that have brought so much misery, underdevelopment and poverty among our people.”
Labels: CORRUPTION, HENRY CHIPEWO, ROADS
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Rupiah must swallow pride over windfall, says Ngoma
By Kabanda Chulu in Kitwe
Thu 04 Feb. 2010, 04:01 CAT
SINDA FDD member of parliament Levy Ngoma yesterday challenged President Banda to swallow his pride and re-introduce the windfall taxes that can be used to repair damaged roads in mine areas.
And transport and logistics expert Henry Chipewo has said it will be better to invest the sought-after loans in the railway sector because the roads would still get damaged by the mines due to inadequacies in the transport policy.
Reacting to President Banda’s intention to acquire higher interest loans from the World Bank that would be used to finance the repair of roads damaged by mining activities in the country, Ngoma said it was unfortunate that the MMD government does not listen to the people.
“To them everything is politics but our advice is not, we are talking about the lifeblood of the Zambian economy and mining is one of the God given resources which Zambians should get maximum benefits from. So it does not make sense for government to borrow,” Ngoma said.
“The issue of windfall tax is still alive and President Banda and his government should swallow their pride and come to Parliament and re-introduce the windfall tax that can be applied to repair the damaged roads.”
He observed that the mines were the biggest contributor to degradation of roads and should be asked to pay more rather than borrowing at higher interest.
“The World Bank are laughing at us that we have gone back again to borrow and yet any responsible government should discuss with the mines and ask them to contribute more, as much as we want our roads to be repaired but not at our expense hence they should not borrow but get from the mines which contribute more to degradation of the roads,” said Ngoma.
And Roan PF member of parliament Chishimba Kambwili said it would be folly for the MMD government to tie people to a higher interest loan when Zambia was capable of making its own money.
“Maybe President Banda is misguided on this issue and it shows that the MMD government is not serious with what they are doing because we can get taxes to repair our roads unlike tying people to a loan when we are capable of making money through mining royalties and windfall taxes,” said Kambwili.
And Chipewo advised the government to immediately revise the transport policy to compel all carriers of bulk traffic to use the railway lines.
“It is better to get a loan and invest it in the railway sector since the roads would still get damaged by the mines due to policy inadequacy and this will be wasting money since government will just be patching up holes,” said Chipewo.
“And it is time to appreciate the role of railway transport in economic development hence government should revise the transport policy so that bulk traffic such as from the mines, is used on the railways and government must revive the railway line that linked all mining towns on the Copperbelt.”
Labels: HENRY CHIPEWO, INFRASTRUCTURE, LEVY NGOMA, MINING, RAIL, RUPIAH BANDA
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Govt terminates TAZARA MD’s contract
By Chibaula Silwamba
Tue 12 Jan. 2010, 04:00 CAT
THE Zambian government has terminated the contract of Tanzania Zambia Railway Authority (TAZARA) acting managing director Henry Chipewo. According to well-placed sources in the Ministry of Communications and Transport, Chipewo’s contract was terminated on January 4, 2010.
The sources said Ministry of Communications and Transport permanent secretary Dominic Sichinga wrote to Chipewo informing him that TAZARA board of directors meeting held at the firm’s head office in Dar-es-Salaam on December 14, 2009 resolved to terminate his contract.
“Mr Sichinga, in his letter to Mr Chipewo, stated that ‘further to a board resolution at the last board of directors meeting held at TAZARA head office in Dar-es-Salaam on 14th December 2009, I hereby advise that the board has revoked your appointment as acting managing director with immediate effect following the conclusion of the exercise conducted by the board to review the operations of TAZARA.
I, therefore, wish to take this opportunity to thank you most sincerely for your positive contributions towards the successful operations of TAZARA during the period you served as its chief executive officer’,” the source explained.
Mr Sichinga further stated that Mr Chipewo’s contributions in enhancing the operations of TAZARA were fully appreciated by the board and the governments of Tanzania and Zambia. He stated: ‘In this regard, I trust that you will make yourself available in future should government call upon your valuable services. I wish you all the best and success in your future endeavours.’
But we are surprised that instead of the board secretary of TAZARA writing to Mr Chipewo and announcing the board’s decision immediately after the meeting in Dar es Salaam, Mr Sichinga as chairman was the one who wrote the letter, which was not even countersigned by his Tanzanian counterpart. This has raised questions about the motive behind Mr Chipewo’s dismissal.”
The sources said Sichinga copied his letter to Tanzanian Ministry of Infrastructure Development permanent secretary Omar Chambo, who is the co-chairman of TAZARA board.
Labels: DOMINIC SICHINGA, HENRY CHIPEWO, TAZARA
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‘Tazara can outperform expectations if financed’
Written by Nchima Nchito Jr in Dar es Salaam, Tanzania
Thursday, August 20, 2009 3:26:48 AM
TAZARA has appealed to the governments of Zambia and Tanzania to guarantee a US $100 million loan for the institution. In an interview, TAZARA managing director Henry Chipewo said if financed, the institution had the capability to outperform expectations.
Asked on the progress of finding an equity partner for the institution, Chipewo said the project was still ongoing.
He said of the US $100 million, US $60 million would be used to clear the various debts that the institution had accrued over a 30 year period while US $40 million would be used to modernise the institution and upgrade the obsolete technology.
Chipewo added that TAZARA was likely to increase its turnover through re-investments of some of the resources once the two governments that co-own the railway line guaranteed the US $100 million.
He expressed hope that the prospects of the institution appeared bright, citing the addition of clients such as Mopani Copper Mines and Kansanshi copper-gold mine in Solwezi as an indication of the progress made by the company.
And Chipewo revealed that transport and communication ministers from the two countries would soon sign the 14th protocol with the Chinese government.
“Under this protocol, the Chinese government will supply us with six locomotives,” Chipewo said.
He said this was in addition to the various other forms of support that would be extended to the institution by the Chinese government.
“Funds will also be made available to revive the TAZARA training school that has been dormant for a long time,” said Chipewo. “There is a need to train people in various skills to fill the technical gaps in the institution.”
Labels: HENRY CHIPEWO, PARASTATALS, TAZARA
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TAZARA director objects to concessioning of railway
Written by Chiwoyu Sinyangwe
Tuesday, June 16, 2009 2:56:00 PM
TANZANIA Zambia Railway Authority (TAZARA) acting managing director Henry Chipewo has objected to attempts to concession the railway line to the Chinese. Chipewo argued that the railway line needed efficient and focused management for it to remain afloat. He said the Chinese should continue to support TAZARA without concessioning it to them.
“The Chinese have been supporting TAZARA through the protocols and to them they feel it is the best they can do to give TAZARA the locomotives, the wagons. The technical assistance that the Chinese are giving is more than enough. All we need in TAZARA is efficient management with a focus and vision and inculcate the culture of responsibility in the employees,” Chipewo said.
“The issues of concessioning came about because TAZARA had actually stopped running. So, the only alternative was to look for a concessionaire. But in a situation where the Zambians are able to do that and they are supported, to me I don’t buy the concept of concessioning. One thing is true; there is no concessioning that has been successful in Africa or the world over…it is just that in Africa, we don’t understand transport, later on, railways.”
And Chipewo disclosed that TAZARA was spending about K4 billion every month to liquidate its US $100 million (K500 billion) debt, with a projection to become debt-free by 2012.
“In spite of the debts that TAZARA did contract over the years, if we will be able to carry enough traffic like 1.2 to two million tonnes per annum, TAZARA is capable of hitting US $100 million per annum and when that happens, we will be able to even address the main problems that we have had over time,” said Chipewo.
“I want to assure the Zambians that TAZARA has changed to such an extent that for the first time, we are paying taxes to government, paying insurance to ZSIC [Zambia State Insurance Corporation], NAPSA [National Pensions Scheme Authority] albeit on small scale because the uptake of our traffic is not yet much and unfortunately, we have taken over TAZARA at the time when the economic downturn has hit the whole world. Right now, we are spending about US $850, 000 (close to K4 billion) every month to service the debts that TAZARA contracted over the years…we are also paying to TAZARA retirees some certain amounts of money they were not paid called TAZARA specifics.”
Labels: HENRY CHIPEWO, TAZARA
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‘Govt scheming to replace TAZARA acting MD Chipewo’
Written by Chibaula Silwamba
RELIABLE sources at the Ministry of Communications and Transport have revealed that some Zambian government officials plan to replace TAZARA acting managing director Henry Chipewo with a 'friendly' person to facilitate illegal importation of Genetically Modified Organisms (GMO) maize into the country.
And the sources revealed that the differences between Chipewo and former minister of communications and transport Dora Siliya started when he increased the rates at which Nyiombo Investments was supposed to transport fertiliser on TAZARA from Tanzania to Zambia.
According to insiders, some importers of maize wanted to use Tanzania Zambia Railway Authority (TAZARA) to import GMO maize from South Africa but abandoned the idea after management at the railway company queried them as to why they wanted to use Dar es Salaam to import maize from South Africa when they could have used the Livingstone route which was shorter.
"Recently, some people who are well connected to senior government officials wanted to import maize into Zambia from South Africa and they approached TAZARA management so that they could use TAZARA to transport the maize. But when TAZARA management asked these guys why they did not use the Livingstone route, which is nearer to Zambia than Dar es Salaam if the maize was coming from South Africa and if the consignment was GMO maize, the guys were startled and that's how they left and they have not gone back to TAZARA," the source said.
"So that gives you an idea of the politics attached to TAZARA; it seems these big guys in government want to be using TAZARA for their own personal advantage. We are dealing with selfish people here. So they are trying to push out Chipewo and put in their own person who will cover up their deals."
The sources said the differences between Chipewo and Siliya started over Nyiombo Investments.
"First of all, their interest is Nyiombo, the fertiliser supplier. The fight started a long time ago. It seems when Chipewo first started as acting managing director, he discovered that Nyiombo was given very low rates of transporting its fertiliser to Zambia. The rates were so low across the board, so Chipewo changed the rates, he adjusted the rates upwards," the source said. "Siliya had flown to Dar es Salaam on three occasions to discuss these issues and during a meeting, she told Chipewo that 'you cannot charge Nyiombo this much. It's a private company.' But Chipewo told her that the rates were too low but Siliya insisted that he could not do that. She was in very good books with the managing director of Nyiombo."
When contacted, Nyiombo Investments managing director Dr Maurice Jangulo said he was in a meeting and later requested for written questions and a press query was sent to him but since Monday last week, he has not responded.
The sources said the government, through its officials in the Ministry of Communications and Transport, was trying to protect companies that were "politically correct" and financially support the MMD.
The sources said Tanzanian ministers, during a council of ministers meeting early April in Lusaka, opposed the Zambian government's manoeuvres to remove Chipewo.
The sources said the Zambian government had introduced a new person during the council of ministers, with whom they wanted to replace Chipewo but the Tanzanian ministers refused saying the council of ministers did not have powers to hire a managing director because that was a responsibility of the board.
"During the council of ministers on April 9, 2009, there were three ministers from Zambia and three from Tanzania; there was Siliya, [finance and national planning minister] Dr Situmbeko Musokotwane and [commerce minister Felix] Mutati and from Tanzania there was the Minister of Finance, Minister of Trade and Minister of Infrastructure," the source said.
The sources said after the three Zambian ministers failed to convince their Tanzanian counterparts, they referred to the matter to the board.
"The board of directors meeting took place on 7th and 9th April, 2009; in fact it was not even a meeting, it was just a question of bringing board and management members and telling them to advertise the position of director within two weeks to employ a new MD. There was no board resolution at all; it was just a directive from the minister. The advert should be running in Tanzanian newspapers by now," the source said. "That happened just after the council of ministers meeting, it should have been on 29th March or somewhere there."
When contacted over the weekend, Chipewo declined to comment on the issues.
Meanwhile, communications and transport permanent secretary Mukuka Zimba refused to respond to questions, saying in the past she was not given a chance to explain what was happening at TAZARA before a story from retirees was published.
"I saw an article in the paper about that. Why didn't you wait for me? Where is that person who wrote that article about TAZARA last time? This is when you are asking me about this? Why do you want me to make a clarification [comment]?" asked Zimba, who sounded angry, before cutting the phone line.
Labels: HENRY CHIPEWO, PARASTATALS, TAZARA
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‘Tanzanian govt rejected Zambia’s request to remove TAZARA director’
Written by Chibaula Silwamba
Monday, April 13, 2009 4:06:07 AM
TANZANIA-Zambia Railways Authority (TAZARA) retirees chairman Listone Musachi has revealed that the Tanzanian government rejected Zambia’s request to remove Henry Chipewo as the company’s managing director.
In an interview, Musachi said Zambia’s Ministry of Communications and Transport permanent secretary Mukuka Zimba had travelled to Tanzania to discuss with her counterparts on the possibility to remove Chipewo from his position and re-instate his predecessor.
“A few weeks ago, Ms Zimba travelled to Dar-es-Saalam unannounced, to remove Mr Chipewo. Tanzanian board members were still not for the idea because Mr Chipewo’s performance has been impressive. The image of Tazara has drastically changed for the better,” Musachi said.
“The problems of poor revenue earnings have been eradicated, stranded trains due to fuel shortages is now a thing of the past, worker’s morale has improved, workers contributions to Zambia State Insurance Corporation [ZSIC] and National Pension Scheme Authority [NAPSA] which was stopped in 1993 are now being remitted, payments to Zambia Revenue Authority [ZRA] are being made, delay in paying workers’ salaries is now a story of the past, and the unauthorised bank overdraft incurred by the previous management has been cleared.”
He said around August last year, TAZARA’s former managing director Clement Mwiya, a Zambian, and his deputy Margaret Banyikwa, a Tanzanian, were suspended by the Tazara board of directors to facilitate investigations of the cause of the rail line’s poor business performance.
“At one of their meetings, the board appointed Henry Chipewo a Zambian, then a member of the board of directors as acting managing director and a Tanzanian, Dismus Ndumbaro, as acting deputy managing director. The duo was mandated to oversee the running of the affairs of TAZARA while the board was still looking for suitable replacement,” Musachi explained.
“Within two days of the duo’s appointments, the [Zambian] minister of communications and transport, Dora Siliya demanded the re-instatement of Clement Mwiya and removal of Mr Chipewo. Various meetings were held with then permanent secretary, Dr [Eustern] Mambwe on the matter to ensure that Mr. Chipewo is removed. At one stage when Siliya saw that things were not moving her way, she appointed a Mr John Chipuwa, an employee at the Ministry of Communications and Transport as managing director completely overlooking the requirements of the TAZARA Act.”
Musachi said Chipuwa was instructed to travel to Dar-es-Salaam in Tanzania with a view to go and take over from Chipewo without having been issued with an appointment letter from the minister or the permanent secretary and without approval of the board of directors.
“This arrangement surprised officials at the Ministry of Communication and Transport in Tanzania. They failed to understand why the Zambian minister was acting in such a way without following the right procedures as provided for in the TAZARA Act that the managing director of Tazara must be appointed by the board of directors through competitive interviews,” Musachi explained. “Chipuwa’s appointment was not accepted by the Tanzanian ministry officials and was compelled to come back to Zambia.”
He said the board of directors of TAZARA consists of four Zambians, four Tanzanians and permanent secretaries who alternate as chairpersons.
Musachi alleged that between September and November, 2008, Siliya made several trips between Lusaka and Dar-es- Saalam to personally ensure that her intended changes were made.
“…but this proved futile because the Tanzanian officials at the Ministry of Communication and Transport objected to her unorthodox way of doing things by not following procedures as provided for in the Tazara Act,” Musachi said. “Siliya tried to force the permanent secretary, Dr Mambwe to remove Mr Chipewo but things did not work her way. Following Dr. Mambwe’s failure to remove Mr Chipewo, Siliya recommended for his transfer from her ministry which resulted into his transfer to the North Western Province.”
He, therefore, said the appointment of Zimba had resurfaced plans to remove Chipewo as TAZARA’s managing director.
“Over 2,000 TAZARA workers and retirees from New Kapiri-Mposshi to Dar-es-Salaam are not happy with the recent development in TAZARA, mainly the move to remove Mr Chipewo,” he claimed. “On 3rd April, 2009, the irate TAZARA workers, retirees and widows in Mpika wanted to hold a peaceful demonstration to express their disapproval of Mr Chipewo’s imminent removal but were denied a police permit. The situation was saved only by the coming of the Mpika district commissioner to the railway station where he addressed the workers and retirees who demanded to him that the government should not remove Mr Chipewo until he fulfills his vision.”
Musachi alleged that the administration of Mwiya and TAZARA’s former region general manager for Zambia Mwase Lungu failed to address the welfare of the workers and retirees.
“As a result, many retirees’ children do not go to school, college or university and retirees are unable to acquire basic necessities of life and cannot pay their electricity and water bills resulting in these services being disconnected by the utility companies,” said Musachi.
“It is sad that the majority of the retirees who participated in the construction of the Uhuru railway line from Dar-es-Salaam to New Kapiri-Mposhi during the early 1970s are now paupers.”
Efforts to contact Zimba proved futile as she could not answer her mobile phone by press time.
Labels: DORA SILIYA, HENRY CHIPEWO, LISTON MUSACHI, TAZARA
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Worker’s union calls for recapitalisation of TAZARA
Written by Gillian Namungala
Tuesday, January 13, 2009 9:42:15 AM
TAZARA Workers Union of Zambia acting general secretary Africa Mkandawire has said recapitalising the railway line could make the company to survive.
Commenting on revelations by managing director Henry Chipewo that Tanzania Zambia Railways Authority (TAZARA)’s debt had risen to nearly US$60 million, Mkandawire said the union was of the view that the current problems could be resolved once the railway line was recapitalised.
“The two governments, Zambia and Tanzania, should come to the aid of the company. But our view as a union is recapitalisation...we feel this will help the company stand on its feet,” Mkandawire said.
He also disputed rumours that job losses were looming at TAZARA.
Mkandawire said management had an agreement with the union, adding that if there were any looming job losses, the development could have been communicated.
Zambia recently proposed a partial privatisation of TAZARA as part of a plan to rescue the financially beleaguered company.
Labels: AFRICA MKANDAWIRE, HENRY CHIPEWO, TAZARA
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