THE NATIONAL Railways of Zimbabwe says it earned a Z$281 million (R40 million) operating profit in the year to the end of December 1999. General manager Sam Zumbika says that 12.2 million tonnes of cargo were moved by the authority.
Revenue rose 17% to Z$4.7 billion. Transport industry observers are surprised there was an operating profit, citing a huge decline in efficiency and soaring inflation. They say that inflation during the period was almost double the rate of increase in earnings, which would mean that the parastatal's operating losses - thought to have been close to Z$200 million - had risen.
The cost of borrowings incurred over the years has meant that overall - including finance charges - the NRZ will continue to rack up huge losses.
For the year to the end of December this year it is thought there will be a loss of Z$ 1 billion. Zumbika told employees recently that only
9.4 million tonnes of freight would be moved,
compared with
12 million forecast.
Recently the NRZ
proposed a three-day working week to cut down on spending.
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