The National Railways of Zimbabwe (NRZ) has significantly expanded its operational capacity following the commissioning of 100 high-sided wagons and three locomotives refurbished under a USD 2.8 million Public-Private Partnership (PPP) with ZIMASCO.
Minister of Transport and Infrastructural Development, Honourable Adv. Felix T. Mhona, hailed the initiative as a tangible manifestation of the Second Republic’s economic transformation agenda.
“It is indeed a great honour and privilege to address you all on this milestone occasion as we commission 100 high-sided wagons and three locomotives, refurbished through a strategic Public-Private Partnership (PPP) valued at UD 2.8 million between the National Railways of Zimbabwe and ZIMASCO,” said Hon. Mhona.
The partnership utilizes a win-win financial engineering model where ZIMASCO funded the overhaul of idle wagons in exchange for freight charge offsets, securing a reliable supply chain route to international markets via regional ports such as Beira and Maputo.
Hon. Mhona said that this model allows NRZ to expand its rolling stock capacity without placing an immediate fiscal burden on the Treasury.
“This partnership exemplifies a win-win financial engineering model. By funding the overhaul of idle wagons in exchange for freight charge offsets, ZIMASCO has secured a reliable supply chain route to international markets via regional ports such as Beira and Maputo,” he stated.
Hon. Mhona noted that the refurbished equipment will immediately ease bottlenecks in the logistics value chain, ensuring that chrome and ferrochrome products reach regional ports safely and competitively, while reducing reliance on heavy road haulage which damages national roads.
“These refurbished locomotives and wagons will enable NRZ and ZIMASCO to improve their operational efficiency, leading to reduced reliance on heavy road haulage and thereby preserving our newly rehabilitated national roads from premature damage,” he said.
The event was attended by high-ranking government officials, including the Minister of Mines and Mining Development, Hon. Dr. P. Kambamuka, and the CEO of the Mutapa Investment Fund, Dr. J.P. Mangudya.
Minister Mhona reaffirmed the government’s commitment to the comprehensive recapitalization of NRZ, citing ongoing partnerships to rehabilitate tracks and upgrade signaling systems.
“Zimbabwe is open for business, and our mining sector continues to grow rapidly. Chrome and ferrochrome remain vital foreign currency earners for our economy. Yet, mineral wealth in the ground means little if we cannot move it efficiently to the global market,” he said.
He called upon other mining houses, agricultural players, and liquid fuel importers to emulate the ZIMASCO model, stating that the government’s doors remain open for private participation in infrastructure modernization.
“It is now my singular honour and privilege to declare the refurbished NRZ-ZIMASCO PPP locomotives and wagons officially commissioned and ready for service,” Minister Mhona concluded.
