The Citizen (Dar es Salaam)
Vicent Mnyanyika
3 July 2009
Dar es Salaam — The government has admitted the fact that poor rail infrastructure is to blame for inefficiency of the Tanzania Railway Limited (TRL).
Speaking to the citizen at the ministry of finance and economic affairs pavilion on the eve of the 33rd Dar es Salaam international trade fair, the publicity and regulatory manager with the consolidated holding corporation (CHC) Mr Joseph Mapunda said poor infrastructure of the central railway line has been the reason behind for a quick improvement of TRL.
Mr Mapunda said in order for the company to take quick improvement of transport services along the central railway line should be renovated and if possible they should contract new line to curter for the growing transport demands.
"People should understand that TRL is a joint venture company owned by the government and investors where the government owns 49 per cent share and investors gaining 51 per cent of the total," said Mr Mapunda insisting that efficiency depends on the4 infrastructure present.
The government owns 100 percent of the rail infrastructure; the investor is required to provide services using government old infrastructures, added Mr Mampunda.
CHC is the result of the process of privatising loss making state owned enterprises started way back in 1992, with the establishment of the Presidential Parastatal Sector Reform Commission (PSRC).
Among the Corporation's key functions include holding all assets and liabilities relating to the banking business to which the former National Bank of Commerce was entitled or subject to, in respect of non-banking assets and liabilities not transferred and vested in NBC Limited or National Micro-finance Bank Limited; dealing with cases inherited from the former NBC as well as cases of the former LART, ATHCO, SIMU 2000 and PSRC; liquidation of public enterprises; and divestiture of parastatals transferred to CHC when Parastatal Sector Reform Commission (PSRC).
Before privatizations rocked the country, there were over 400 non profit companies which depended on subsidies; these were costing the government over $100 million for every year, today at least 270 loss making public companies have been privatized.
Mr Mapunda however said apart from poor infrastructure, he advised for the amendment of the administration system and structure to pave way for efficiency of the company and later contribute to the national income.
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