The Zimbabwe government is negotiating with a South African company for a ‘build, operate, transfer (BOT)’ agreement in terms of which the company will rehabili- tate the country’s 3 077-km-long railway network at a cost of about $340-million.
Transport, Communication and Infrastructural Development Minister Nicholas Goche says the two parties are closer to finalising the deal, which will entail replacing worn-out tracks, revamping the signalling system and acquiring new locomotives for the debt-ridden parastatal.
“South African railway companies are cognisant of our strategic geographical position and are now approaching us for business. A BOT agreement is being finalised between government and a South African investor.”
This comes as Zimbabwe, which has failed to obtain a capitalisation loan of at least $400-million for the country’s sole railway services provider, intensifies efforts to persuade private-sector investors to help revive the National Railways of Zimbabwe (NRZ).
According to NRZ GM Mike Karakadzai, the parastatal has no resources to maintain its railway network, which “is fast deteriorating and on the verge of collapse”.
“If other players come on board, the burden of maintaining the rail network will be shared.”
Karakadzai says the company’s efforts to lobby for private-sector investment are failing because the Zimbabwe government, which is the majority shareholder, is not providing much help. “The trading environment is uneven. The State is contributing heavily towards maintenance of roads but we are in this alone. The players in the road sector are succeeding because they are subsidised by government.”
The NRZ’s push for a railway and communication systems upgrade comes as Southern African countries look set to activate a plan to coordinate their rail services through Zimbabwe to bolster regional trade by facilitating the export of goods through the port of Durban, in South Africa.
According to Transnet head of international business Nyameka Madikizela, railway services from South Africa, Botswana, Zambia, Zimbabwe and the Democratic Republic of Congo will be coordinated through a Joint Operating Centre to be set up in Bulawayo, Zimbabwe’s second city.
Meanwhile, the redevelopment of Zimbabwe’s key road transport infrastructure received a boost last month with the acquisition of two pothole-patching machines, which will be used to rehabilitate major highways and key access roads.