The National Railways of Zimbabwe (NRZ) is optimistic that the $400 million Diaspora Infrastructure Development Group (DIDG)-Transnet deal discussions will be concluded by mid-August to pave way for the commencement of work on upgrading of critical rail infrastructure.
NRZ is targeting to register a further increase in freight volume from 3.1 million tonnes in 2018 to over 4 million tonnes this year.
Addressing investors at the just concluded 2019 International Chromium Development Association (ICDA) Conference, NRZ operations director Samson Bhuza highlighted that the entity is still pursuing the $400 million recapitalisation project in order to boost its capacity and support the mining sector through the efficient transportation of minerals.
“We remain optimistic that the $400 million Diaspora Infrastructure Development Group-Transnet deal will be concluded by mid-August to pave way for the revamping of key infrastructure,” he said.
According to the entity, the mining sector remains key to the performance of the firm given the fact that it contributes 94 percent to the parastatal’s revenue and 44 percent to the annual freight volume.
As part of efforts to support the mining sector, the entity is working on rehabilitating the Gweru-Mvuma railway line in view of the increased chrome mining activities in the Lalapansi area.
NRZ which has an installed design capacity to move 18 million tonnes of freight per annum is looking forward to making use of the $400 million capital injection from the Transnet deal to repair tracks, upgrade signaling and communication technologies as well as procure new wagons.
