Home » Business » RMS Needs U.S$1,5 Million to Improve Fleet

Road Motor Services, a subsidiary of the National Railways of Zimbabwe requires about $1,5 million to improve its fleet and address working capital constraints as the company continues to face challenges in the current economic environment.

RMS just like its parent company has been failing to pay its workers, citing liquidity challenges and antiquated machinery which has resulted in depressed operations.

The company intends to purchase new trailers and upgrade its fleet.

Currently the turnaround of the parastatal has been under the Ministry of Transport and Infrastructural Development.

Speaking to the Herald Business yesterday, RMS managing director Mr Cosmos Mutakaya said the company has capacity to yield good results if it capitalised.

“As you can see in the current economic environment many organisations are struggling with problems ranging from working capital constraints and low liquidity.

“I also agree that we should continue to engage outstanding creditors and employee salaries is one of them.

“I agree the company is not in a good financial position but just like any other debtor we are working hard towards meeting our obligations as an organisation,” said Mr Mutakaya.

Mr Mutakaya said the company’s fleet is made up of 60 hoses and 35 trailers leaving a shortfall within the system.

RMS is currently spearheading the construction of the Walvis Bay dry port in partnership with Walvis Bay Corridor Group and the Namibian Port Authority.

In September 2009 Namibian Government granted Zimbabwe 19 000 square metres of land to construct its own dry port that is expected to boost the country’s trade but due to financial constrains the project failed to take off.

Source : The Herald