17 August 2017
   
Cops say no Grace arrest until orders given
Mugabe lands in SA amid Grace storm
SA government officials debate Grace immunity
Vets boss jailed for failed mum Grace jibe
Biti in Lusaka: Lungu admires, copies Bob
Kalanga insult recall as Grace in SA ‘crime’
Roamer ties lady to a tree, rapes her till AM
Pastor jailed 20 years for killing his wife
MORE NEWS
Farmers paid $551m but tobacco sales down
Milk output stabilises after rain upsets
MORE BUSINESS
Westerhof: media emotionally razed me
Busi Ncube to launch Usiko album in Byo
MORE SHOWBIZ
Dangote to fire Wenger if he buys Arsenal
Caps passes Platinum test, wins 2-1
MORE SPORTS
Mugabe not Nkomo was bent on Civil War
Yamamoto: Sinister Mugabe university
MORE OPINION
 
Yesterday’s ogres & restorative justice
MDC needs Mawarire, Mahere, Mkwananzi
MORE COLUMNISTS
 
 

PPC Cement business gives NRZ a lifeline

24/02/2017 00:00:00
by Source.co.zw
 
 
RELATED STORIES
$400mln deal puts NRZ back on track
NRZ locomotives 50 years old, debt $90m

BULAWAYO: Struggling National Railways of Zimbabwe (NRZ) says it has moved one million tonnes of freight between October 2016 and February this year following the purchase of 31 wagons from China to boost its capacity, thanks to cement maker PPC’s new plant in Harare.

The company last year purchased 31 wagons worth $2,9 million from China to replace part of its ageing fleet. Last November, PPC Cement commissioned a $85 million plant in Harare that produces 700,000 tonnes per year but engaged the NRZ to move clinker from its Colleen Bawn base near Gwanda to the Msasa operation, providing a timely boost to the ailing parastatal.

“The 31 wagons which have carrying capacity of 54 tonnes each, have increased capacity in uplifting of clinker from Colleen Bawn to Msasa, Harare. They have been dedicated to PPC which has resulted in guaranteed business every month,” said NRZ acting public relations officer, Martin Banda.

“In turn, this has seen wagons from our old fleet, initially dedicated to this business, being released to add capacity in the movement of other products,” he said.

Banda said according to their unaudited figures, from October 2016 to 15 February 2017, they moved 1,068,754 tonnes of freight.

“Of this tonnage, 830,251 tonnes were moved during the last quarter of 2016 and 238,503 tonnes were moved from January 2017 to 15 February 2017,” he said.

That means on average, the NRZ has been moving nearly 40,000 tonnes week since the start of the year.

At its peak, NRZ employed about 20,000 workers and moved 18 million tonnes of freight annually.

Last year, the company moved three million tonnes of freight and has a target of 3,7 million tonnes in 2017, according to the parastatal’s board chairman, Larry Mavima.

NRZ, the country’s sole railway transport operator, has failed to run profitably for years due to undercapitalisation and ageing rolling stock.

The parastatal has 3,500 operational wagons for moving cargo but most are ageing or in a state of disrepair.
NRZ has performed poorly in recent years, and has incurred losses of over $200 million between 2009 and 2013.

Its 2014 accounts showed that its freight unit was generating annual revenue of $91,2 million, but incurring costs of $103 million. The passenger unit had annual revenues of $3,2 million, with costs over three times more at $10,9 million.



Advertisement

The parastatal has said it requires $2 billion to fully recapitalise.


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker