Business Correspondent
The National Railways of Zimbabwe (NRZ) has taken a significant step towards revitalizing its freight rail network by partnering with private companies, including Grindrod, a South African logistics firm.
This strategic move aims to increase freight volumes, which have drastically declined over the years due to underinvestment and poor maintenance of rail infrastructure.
“We are excited to collaborate with private players to augment our capacity and meet the growing demand for freight rail services,” said Andrew Kunambura, NRZ spokesperson.
“Last year, we hauled 2.8 million tons of cargo, but we have the potential to do more with the help of our partners.”
Grindrod, through its Zimbabwean subsidiary Beitbridge Bulawayo Railway, has already deployed three locomotives and 150 wagons since March, marking a significant investment in the partnership. Xolani Mbambo, Grindrod CEO, highlighted the company’s commitment to expanding its rail business in southern Africa, where state-owned operators are increasingly opening up their networks to private investors.
“We see immense opportunities in this region, with its vast mineral resources and growing demand for cleaner energy,” Mbambo said.
“Our partnership with NRZ is a testament to our confidence in the potential for freight rail growth in Zimbabwe and beyond.”
The partnership is expected to boost NRZ’s freight volumes, which had peaked at 12 million tons in the 1990s but have since declined to less than 3 million tons. The resurgence of mineral output, driven by Chinese demand for chrome and lithium, has created an opportunity for NRZ to restore its capacity with the aid of private companies.
“This partnership is a game-changer for us,” Kunambura said.
“With Grindrod’s expertise and resources, we can now tackle the growing demand for freight rail services and contribute to the country’s economic growth.”
As NRZ continues to collaborate with private companies, the state-owned group is poised to regain its position as a key player in the region’s freight rail network.
Zim GBC News©2024