The National Railways of Zimbabwe (NRZ) has established an open access agreement with its subsidiary, Beitbridge Bulawayo Railway (BBR), aiming to boost revenue for the national railway operator.
During a recent strategy meeting in Mutare, NRZ management presented this initiative to stakeholders, explaining that it aims to enhance rail capacity and speed up deliveries by allowing private operators like BBR to use its network.
According to NRZ management, this open access model is anticipated to create new business opportunities, potentially increasing NRZ’s 2024 traffic forecasts from the budgeted 2.685 million tonnes to about four million tonnes.
NRZ holds a 15 percent stake in BBR.
The open access arrangement permits private entities to participate in the operation, management, and development of railway infrastructures and services, fostering competition, increasing efficiency, and introducing innovation in the railways sector.
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“Open access has proven beneficial as private players can bring in more investment, modernise infrastructure, introduce new technologies, and enhance customer experience and satisfaction, leading to retention and loyalty,” said NRZ.
The parastatal has been struggling with declining revenue due to a significant drop in business volumes. In the 1990s, NRZ transported 12 million tonnes of freight annually but now moves only 2.3 million tonnes.
This decline is mainly due to outdated infrastructure and an aging fleet of locomotives. NRZ currently owns 68 mainline locomotives and 73 shunt locomotives, with only 39 in operation, underscoring the urgent need for refurbishment.
All locomotives have exceeded their expected lifespan of 25 years, with mainline locomotives aged between 30 to 48 years and shunt locomotives between 40 to 60 years.
To revitalise its operations, NRZ is seeking external assistance for locomotive refurbishments. It plans to adopt a fixed-cost, supply-inclusive outsourcing model to tackle internal inefficiencies and the high costs of traditional methods.
Despite having workshops capable of locomotive maintenance and overhauls, NRZ faces cash flow limitations and lengthy procurement times for spare parts, often taking eight to 12 months.
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