VICTORIA FALLS — Transport, Communication and Infrastructure Development minister Nicholas Goche says financially hamstrung National Railways of Zimbabwe (NRZ) needs about $350 million for recapitalisation. Report by Richard Muponde Senior Reporter
Speaking at a civil aviation conference last week, Goche said the funds would enable the parastatal to operate profitably. “The funds are for the first phase to kickstart profit-making,” said Goche.
“I have been looking at a presentation by the Development Bank of Southern Africa on the amount needed to recapitalise the parastatal. We are still looking into it so that the funds are injected into the organisation.”
He said the first phase would entail buying rolling stock that includes locomotives and wagons.
“Last week, I was talking to the Chinese Ambassador about the locomotives we purchased from that country. He said they were ready for shipment”.
Early this year, State Enterprises and Parastatals minister Gorden Moyo disclosed that the proposed unbundling of NRZ was a “nightmare” as there were few investors that had expressed interest.
Under the 2010-2015 Medium Term Plan (MTP), which the government is using to benchmark economic recovery, the State intends to review current regulatory policies governing railways in a move that could bring competition to the loss-making NRZ.
According to the plan, the government is considering “a separate body to own/operate infrastructure while the rail services are opened up to a number of sector players for a fee”.
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The move would end the ailing company’s monopoly which NRZ has been enjoying for decades despite facing numerous challenges. Meanwhile, Goche described the much-talked-about marriage between KLM and Air Zimbabwe as a dream saying the proposal had not been forwarded to his office for approval.
“There is nothing like that,” Goche said. “I just heard rumours about the deal, but the truth is there is no such deal. The ministry has not approved the partnership. The proposal has not been made to the ministry, so there is no partnership to talk about.”
He said KLM Airways could not partner with Air Zimbabwe as it (KLM Airways) was already in partnership with another national airliner in East Africa.
“I do not know how the airliner would want to partner with Air Zimbabwe when it is already in partnership. KLM Airways is in partnership with Kenyan Airways so it is impossible for them to partner our national airline,” Goche said.
He said the national airline would soon resume its international flights.
“In the next week, I will be announcing that Air Zimbabwe will be resuming international flights. We are at the present moment servicing the regional routes, but things are improving and we are gearing to resume international flights.”
Last month, Economic Planning and Investment Promotion minister Tapiwa Mashakada appealed to the Royal Dutch Airlines to partner the national airline.
