DELOITTE and Touche Zimbabwe, a member of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private limited company has been appointed as a transaction adviser of the ailing National Railways of Zimbabwe (NRZ).
BY SILAS NKALA
The parastatal is facing critical infrastructure and operational challenges with the company’s general manager Lewis Mukwada last week saying the company needed new locomotives to replace its ageing fleet.
The Deloitte and Touche’s appointment was revealed by Transport and Infrastructural Development minister Jorum Gumbo on Friday during the commissioning of 31 open top high sided prototype wagons which the company acquired at a cost of $2,9 million from China.
“I want to acknowledge the recent appointment of the transaction advisor, who will assist NRZ in evaluating the bids from various potential financiers and partners,” Gumbo said.
“In my view, the fact that Deloitte were selected after submissions by eight corporates was carefully scrutinized and evaluated means that they are the most suitable partner for NRZ in this regard.”
He said government’s position was that they were open to evaluating the various proposals that may be received for the recapitalisation of NRZ.
Gumbo lamented that the country risked losing rail and road capabilities through underutilisation of rail as a result of the diversion of rail-friendly business to road. He said the road network is over used leading to its fast deterioration, congestion and increased frequency of accidents and loss of life.
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“What we want to see is a situation whereby road and rail co-exist, with a clear separation of roles, but complementary to each other. Road should provide feeder services in the main and be the dominant player especially where there is no rail network,” he said.
He said their hope is to shift portions of bulk cargo back to rail and be able to save on the costs of maintaining the road network.
“While this can be achieved in the long run, we are immediately faced with a challenge of attracting sound partners or financiers to the NRZ project hence the subject of ring fencing of certain bulk cargo to NRZ,” he said.
