Home » General » ZIMBABWE RAILWAYS TO MISS FREIGHT HAULAGE TARGET

The National Railways of Zimbabwe (NRZ) says it will not meet its full year target of moving 4.0 million tons of freight after it moved 2. 5 million tons by the end of November this year.

The parastatal has failed to run profitably for years because of under-capitalization and ageing rolling stock.

NRZ general manager Lewis Mukwada attributes the subdued performance to low business that was available during the first quarter of the year.

"The NRZ has moved 2.5 million tons of freight, as at 30 November 2016, against a 2016 target of 4.0 million tons," he said Minday. "The projection for the end of year now stands at 2.7 million tonnes as compared to 3.2 million tons moved last year."

Mukwada said business started recovering in the last half of the year, due to maize imports and chrome ore exports that came later in the year.

"The NRZ expects to maintain this momentum of recovery and is targeting to move 3.5 million tons in 2017," he said.

The NRZ has performed poorly over the past few years, and has incurred losses of more than 200 million US dollars between 2009 and 2013. Its 2014 accounts showed that its freight unit was generating annual revenue of 91.2 million USD, but incurring costs of 103 million USD while the passenger unit had annual revenues of 3.2 million USD, with costs at 10.9 million USD.

The parastatal has said it requires 2.0 billion usd to fully recapitalize.

Source: NAM NEWS NETWORK

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