The National Railways of Zimbabwe (NRZ) has signed an open access agreement with its subsidiary, Beitbridge Bulawayo Railway (BBR), in a move expected to generate additional revenue for the national railway operator.
In a presentation to stakeholders at a recent strategy meeting in Mutare, NRZ management said the initiative was aimed at enhancing rail capacity and expediting deliveries by allowing private operators like BBR to utilise its network.
The management said the open access model was expected to generate new business opportunities, potentially increasing NRZ's 2024 traffic projections from the budgeted 2,685 million tonnes to around four million tonnes.
NRZ owns 15 percent shareholding in BBR.
The open access arrangement for private players in the railways sector addresses the potential involvement of private entities in the operation, management, and development of railway infrastructures and services.
The aim for such access arrangements is to foster competition, increase efficiency, and bring innovation to the railways sector.
"Open access has proven to be advantageous as private players can bring increased investment, modernisation of infrastructure, introduction of new technologies, and enhanced customer experience, satisfaction leading to retention and loyalty," said NRZ.
The parastatal is facing challenges related to declining revenue due to a sharp drop in business volumes.
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While at one point NRZ transported 12 million tonnes of freight annually in the 1990s, it now struggles to move just 2,3 million tonnes annually.
The decline is largely attributed to outdated infrastructure and a deteriorating fleet of locomotives.
NRZ currently owns 68 mainline locomotives and 73 shunt locomotives.
However, only 39 of these locomotives are operational, highlighting the dire need for refurbishment.
Moreover, all the locomotives are past their prime, having significantly exceeded their expected lifespan of 25 years.
The mainline locomotives range in age from 30 to 48 years old, while the shunt locomotives are between 40 and 60 years old.
In a bid to revitalise its operations, NRZ is seeking external help with locomotive refurbishments.
It plans to adopt a fixed-cost, supply-inclusive outsourcing model to address internal inefficiencies and high costs plaguing traditional methods.
Despite having workshops capable of locomotive maintenance and overhauls, the NRZ struggles with cash flow limitations and lengthy procurement times for spare parts, often taking eight to 12 months.
