State-owned Transnet's Diaspora Infrastructure Development Group Consortium on Wednesday delivered rolling stock to the National Railways of Zimbabwe (NRZ) to strengthen regional integration, trade and the recapitalisation of the Zimbabwean railway programme.
This transaction between a South African-Zimbabwean consortium and NRZ is estimated to be valued at just over $400-million, and will contribute to the realisation of the North-South Corridor Programme in the Southern African Development Community region, Transnet said in a statement.
The delivery will contribute to the region's plans to establish an uninterrupted intra-trade and efficient railway system cementing Transnet's Africa strategy, which will result in railway, terminal and port integration throughout the continent, it added.
"The nature of this contract and the relationship with neighbouring and continent-wide rail, ports and pipeline logistics providers tells a story of how Transnet strives to collaborate and grow its footprint on our African continent, the Middle East and South Asia. This is not only a historical event, but a key economic contribution to the milestones set out for Zimbabwe," said Transnet group CE Siyabonga Gama.
To address Zimbabwe's immediate railway capacity shortfalls, the consortium has entered into a six-month lease agreement for rolling stock, with the agreement renewable on demand.
The delivery of the rolling stock also emphasises the Zimbabwean narrative that, "Zimbabwe is now open for business", Transnet stated.
Zimbabwe President Emmerson Mnangagwa, together with members of his Cabinet, witnessed the arrival of the rolling stock, which included seven locomotives, 151 wagons, five passenger coaches, one kitchen car and one power car.
Transnet expects this initial contract to be followed by another for the supply of 24 new main line locomotives, ten new locomotive shunters, 200 general purpose wagons and 16 new passenger coaches, as well as the refurbishment of 13 NRZ shunters and 768 NRZ wagons.
The delivery of the new and refurbished rolling stock will be finalised and announced in the near future as the consortium and the Zimbabwean authorities conclude all the required governance processes and agreements.
The new railway equipment for the main line solution will be manufactured in South Africa by Transnet through its advanced manufacturing arm.
This accomplishment, Transnet enthused, will also reinforce its transition from its current Market Demand Strategy to its Transnet 4.0 strategy.
The main growth thrusts of Transnet 4.0 include the expansion of the company's manufacturing business, with leading technologies to enhance new and existing products and improve business processes.