Published: 07 May 2018

A delegation from the Diaspora Infrastructure Development Group (DIDG)/Transnet Consortium was in the country last week for a due diligence engagement with the National Railways of Zimbabwe (NRZ) meant to conclude financial closure for the $400 million recapitalisation deal.

NRZ sealed the mega-project whose consummation is expected to be reached by end of next month.  NRZ public relations manager, Mr Nyasha Maravanyika, confirmed that officials from DIDG/Transnet were in the country from April 29 to May 6 where they toured NRZ facilities across the country.

"The DIDG/Transnet officials were here for due diligence to assess our financial, operational and technical capacity. We also went to South Africa last month to do the same with them," he said.

"So, they are also doing the same before the deal is finalised at the end of June. They are looking at NRZ facilities around the country — Bulawayo, Gweru, Hwange and Harare. After the exercise they will give their feedback on areas we need to improve and maybe help where they can."

The parastatal is leasing 13 locomotives, 200 wagons and seven locomotives from South African rail utility, Transnet as a stop gap measure under an agreement with the DIDG/Transnet Consortium. The deal is expected to turn around the ailing parastatal's fortunes and return it to profitability.

Recently, NRZ revealed that the interim equipment had started impacting positively on the organisation's operations. It also said there has been a significant rise in passenger figures with an average 300 people boarding the train daily compared to 240 recorded before their deployment.

The NRZ system has a design capacity to move 18 million tonnes of freight a year but is moving just over three million tonnes and the recapitalisation programme is expected to improve freight volumes.

The deal is also expected to immensely benefit the country, impact on downstream and upstream industries.

The partnership has been described as a milestone development for Southern Africa in view of Sadc's Industrialisation Strategy and Roadmap, which identifies expansion, upgrading and interconnection of regional transport (road, rail, air and ports), as key in enhancing trade flows and the mobility of factors of production.
- chronicle