Over 53 firms express interest in NRZ project

Business Reporter
The National Railways of Zimbabwe has received overwhelming responses from potential investors with over 53 companies submitting expressions of interest. NRZ requires $400 million in the short term to acquire new machinery and to rehabilitate existing infrastructure to increase quality services. General Lewis Mukwada told The Herald Business yesterday that many investors had expressed interest and management yesterday held a pre-bidding conference.

“We flighted adverts for the recapitalisation initiative we are currently undertaking. Under this bidding process NRZ is looking at raising $400 million.

“At first we flighted the adverts but as a follow-up we then decided to write to the companies we have been in discussions with formally. We held a pre-bidding conference yesterday with regards to this initiative,” said Mr Mukwada.

“About 53 companies have expressed interest and we are now at a stage where we now want to see the company going forward,” he said.

NRZ in the long term requires about $2 billion that will go towards the acquisition of new rolling stock. During early 2000, NRZ used to carry goods weighing 9,5 million tonnes but the carrying capacity has declined to 3,4 million tonnes in 2015 due to shortage of proper machinery for the sector.

NRZ owns 168 locomotives, of which only 64 (38 percent) are currently serviceable and the sector also owns 7 255 wagons and only 3 467 which is 48 percent that are operational while the rest are set for different reasons.

If NRZ secures the fund it will be able to increase revenue from operations, return to profitability and in turn will be able to repay salaries and salary backlog, and creditors, improved rolling stock and infrastructure maintenance regime.

Government has also been engaging South Africa’s Transnet Limited under a partnership that will see the rail company securing funding required for rehabilitation of its rail network.

Vice President Emmerson Mnangagwa while giving his official address at the Confederation of Zimbabwe Industries congress last year said NRZ requires about $6 billion for it to modernise to global levels.

“Turning to rail, about $6 billion is needed for rail capacity upgrade and modernisation. I have no doubt that the urgency to rehabilitate and construct new infrastructure is well received, as such enablers constitute the lifeblood of industry and commerce,” said VP Mnangagwa.

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