By Chantelle Tatenda Muzanenhamo
The National Railways of Zimbabwe (NRZ) has set forth a major step towards revitalizing declining freight operations in the country by inviting the private sector to assist in rejuvenating the railway system. The move is poised to transform Zimbabwe’s transportation of goods landscape potentially boosting the economy towards supporting the country’s ambitious goal of becoming an upper-middle-income country by year 2030.
For decades, the NRZ served as the backbone of Zimbabwe’s bulk goods transportation sector, facilitating the movement of goods and people, but by the late 1990s, it began to decline due to factors such as lack of investment, poor infrastructure maintenance, and economic turmoil, resulting in a significant drop in freight volumes and a loss of competitiveness to road transport.
The opening up of the railway lines to the private sector will assist in addressing decades of under-investment that have resulted in a significant decrease in freight volumes, which have fallen from a peak of over 10 million tons per year in the 1990s to less than 3 million tons today.
In an illustration of the contrasting fortunes of the parastatal, NRZ spokesperson Andrew Kunambura recently stated, “Last year we uplifted 2.8 million tonnes against the available business of 3 million tonnes.” This figure highlights the untapped potential within the railway sector.
This cooperation with companies like South Africa’s Grindrod will enable the NRZ to modernize its fleet, improve service delivery, and increase cargo capacity at a time when the mining sector is resurging due to heightened demand for chrome and lithium from China. Companies such as Tsingshan Holdings, Sinosteel, and Sinomine have made significant investments in Zimbabwe, establishing operations for the mining and manufacture of iron ore, steel, chrome, and lithium mining. These firms primarily export their products through ports in Mozambique, the increasing volumes of mineral exports have exceeded NRZ’s current capacity, highlighting the need for enhancements to meet the rising demand.
“These private companies are coming in with their locomotives and wagons to supplement what we have” added the NRZ Spokesperson.
The implications of these changes extend well beyond the railway, as enhancing rail operations in Zimbabwe is expected to spur economic activity by facilitating smoother trade, connecting remote regions to markets, reducing transportation costs for businesses, and ultimately leading to job creation and increased productivity across sectors; furthermore, revitalizing the National Railways of Zimbabwe (NRZ) could significantly reduce road traffic accidents by decreasing truck transport of goods and alleviating the strain on road infrastructure, which currently suffers from high accident rates and wear and tear due to heavy truck traffic, thereby promoting safer travel for all road users.
As Zimbabwe stands on the brink of this new railway rebirth, the nation is filled with hope that this venture will lay the groundwork for sustainable economic growth.