Transnet has submitted
a proposal, along with
five other parties, for
the recapitalisation of
the National Railways of
Zimbabwe (NRZ), as part
of its geographic expansion
strategy.
In a brief statement,
Transnet said that Africa
was an important factor in
its growth plans, adding
that it was leveraging
its core competencies in
port, rail and pipeline
infrastructure to diversify
its operations.
“Our long-term vision is
to provide an integrated
freight system in the
southern Africa region.
The scope of opportunities
under consideration
includes advisory work,
building, operating and
transferring of concessions
in the logistics space,” the
statement reads.
NRZ requires $400
million for new machinery
and the rehabilitation of
existing infrastructure.
While it owns 168
locomotives, only 64 are
currently serviceable. Of its
7 255 wagons, fewer than
half (3 467) are operational,
Transnet has submitted
a proposal, along with
five other parties, for
the recapitalisation of
the National Railways of
Zimbabwe (NRZ), as part
of its geographic expansion
strategy.
In a brief statement,
Transnet said that Africa
was an important factor in
its growth plans, adding
that it was leveraging
its core competencies in
port, rail and pipeline
infrastructure to diversify
its operations.
“Our long-term vision is
to provide an integrated
freight system in the
southern Africa region.
The scope of opportunities
under consideration
includes advisory work,
building, operating and
transferring of concessions
in the logistics space,” the
statement reads.
NRZ requires $400
million for new machinery
and the rehabilitation of
existing infrastructure.
While it owns 168
locomotives, only 64 are
currently serviceable. Of its
7 255 wagons, fewer than
half (3 467) are operational,
business from nowhere,” he
adds.
“NZR’s
problem is
not just that
it hasn’t
got enough
rolling stock.
Its problems
are at the
heart of its
business.”
Marsay
says most
of the trade
within southern Africa
is not high volume cargo
like coal or iron ore. “Even if
you count the total volume
of trade going up and down
the North-South corridor,
there is not enough trade
volume to justify a railway.”
The busiest general
freight corridor in Africa is
Durban to Johannesburg
and it carries 15 million
tonnes per year. “Anything
below 20 million tonnes per
year on the North-South
corridor is not a viable
business,” he says.
Marsay believes the
Transnet bid is being
driven by people who
want to make money
out of rolling stock
supplies and contracts.
“There tends to be a
misconception that people
with money
are just there
waiting to
drop it into
your favourite
project.
Ultimately,
people
shouldn’t
invest in
railways
unless the
underlying
business is itself viable,” he
cautions.
NZR bids closed on July
4, with the
winner
expected
to be
announced
today (July
14).
NZR’s problem is not
just that it hasn’t got
enough rolling stock.
– Andrew Marsay
