Transport and logistics are crucial for any country’s productivity and economic growth. Efficient movement of goods is essential, and any disruption can severely impact the supply chain. Zimbabwe has faced challenges in transporting goods internally due to deteriorated road and rail infrastructure. The old railway lines have fallen into disuse, with vegetation overtaking them, making rail transport almost non-existent for both goods and passengers.
To address these issues, Zimbabwe has signed a $533 million deal with China to revamp its railway infrastructure, which will facilitate the movement of goods and people. The Manhize Steel Plant is a prime example of how unreliable transport affects production, as the struggle to bring in raw materials hampers operations. The deal with TransTech Engineering Corporation, a subsidiary of the China Railway Group, aims to rejuvenate Zimbabwe’s railway network, which has been around for over a century.
Built during colonial times by the British, Zimbabwe’s rail network peaked in the 1990s but has declined since then, resulting in freight levels dropping to less than 15% of their peak. Despite its rich mineral resources, Zimbabwe’s lack of transportation infrastructure has hindered its ability to export minerals profitably.
TransTech is one of 11 companies working with the National Railways of Zimbabwe (NRZ) to refurbish and provide locomotives and diesel multiple units, construct a new railway line from Beitbridge to Harare, and enhance mineral transportation. Additionally, NRZ is exploring a partnership with the University of Zimbabwe to develop railway solutions through the university’s innovation hub.
NRZ Public Relations and Stakeholder Manager Andrew Kunambura emphasized the importance of these agreements in an interview with Sunday Business. “We are partnering with TransTech on our capital priority projects, including infrastructure and rolling stock, amounting to US$533 million,” Kunambura said. “Infrastructure includes railway lines, while rolling stock refers to locomotives and wagons.”
CRIG Chairperson Chen Yun has been in Zimbabwe leading a delegation to discuss the investment proposal at both governmental and operational levels. The delegation has started a feasibility study on the phased priority projects outlined in NRZ’s strategic turnaround plan, expected to conclude by the end of the month.
In addition to TransTech, NRZ is in discussions with China Railway No. 9 (CR9) for the construction of the Beitbridge-Harare line, with a preliminary agreement signed on May 10, 2024. This new line is expected to enhance imports and exports with South Africa, Zimbabwe’s largest trading partner.
NRZ is also negotiating with General Rail, a South African company, for the provision of locomotives and wagons. “Our engineering team has visited South Africa and made recommendations for procuring these locomotives,” Kunambura noted.
Although Kunambura did not disclose all 11 partner companies, he mentioned a consultancy firm interested in developing fast rail services for both freight and passengers. Additionally, NRZ has partnered with Berhard Development Corporation, a logistics company, to improve mineral transportation, with an agreement signed on May 13, 2024.
These initiatives represent a significant step forward for NRZ, aiming to revitalize Zimbabwe’s rail network and enhance its economic infrastructure.
