Govt secures US$530m NRZ re-capacitation deal

Staff Reporter

In a significant move aimed at revitalising the nation's transport infrastructure, the Second Republic is embarking on a comprehensive effort to transform the National Railways of Zimbabwe (NRZ). This transformation is set to receive a major boost with the imminent arrival of wagons and locomotives from the Republic of Belarus, marking a crucial step in the ongoing recapacitation drive.

A source who is privy to the details of the NRZ contract spoke to this publication on condition of anonymity disclosed that the Belarusian Government has proposed a US$530 million deal to supply rolling stock as part of the comprehensive recapacitation initiative. The ambitious "Second Republic recapacitation deal" is structured in three phases, with allocated costs of US$160 million, US$120 million, and US$250 million. The Belarusian Government has also outlined a repayment plan, under which NRZ would reimburse the principal amount with interest at 3 percent per annum over a two-year loan duration.

“The primary objective of this deal is to breathe new life into Zimbabwe's railway system by undertaking extensive rehabilitation and upgrades to the existing rail infrastructure and rolling stock. The project will encompass the removal of speed restrictions along 254km of the mainline track, contributing to the overall rehabilitation of 1750 km of rail tracks” said the source.

In addition to track improvements, NRZ aims to enhance safety measures by introducing a new signalling system, stabilizing train communication, and upgrading yard lighting. The overall operational capacity for transporting goods is anticipated to witness a substantial increase, soaring from 2.65 million tonnes per annum to an impressive 12.4 million tonnes.

“The procurement of locomotives will unfold in three distinct phases, addressing the need for modernisation and efficiency. The current reliance on hired locomotives from South Africa, deemed costly given the prevailing financial constraints, is expected to be alleviated through the successful implementation of these phases,” revealed the source.

Meanwhile, India Rites, an Indian company, is poised to contribute to the transformation by introducing a locomotive and 315 wagons in a deal valued at US$1.2 million. This collaboration is anticipated to significantly enhance the reliability and efficiency of NRZ services, unlocking new revenue opportunities in the process. The existing fleet of locomotives and wagons, considered outdated, will undergo a substantial upgrade as part of this comprehensive initiative to turn Zimbabwe into an upper middle income economy by 2030.