Bulawayo (New Ziana) — The National Railways of Zimbabwe (NRZ) has reached a strategic collaboration agreement with local logistics company Grand Rail Solutions (GRS) to transport 1.7 million tons of materials and steel products annually to and from the Manhize steel plant near Mvuma, the Midlands province.
In a statement, the NRZ said GRS would provide locomotives, wagons and fuel, while the railway operator would supply infrastructure and train crews.
The planned annual traffic includes 1.1 million tons of coal transported to Mvuma and 600 000 tons of steel products, including pig iron and billets—moved to market.
The NRZ said the agreement would increase its annual freight volumes and shift much of the coal traffic from Hwange from road to rail with the parastatal saying the move could also lower production costs and assist Zimbabwean products compete on the global market.
Collaboration will proceed in phases, with the second phase involving an estimated US$27 million upgrade of the railway track between Gweru and Mvuma to enable it to handle significantly more traffic.
A further phase will involve construction of a 50-kilometre railway line from Mvuma to Manhize, connecting the steel plant to the national rail network.
“GRS will finance construction of the new line and transfer it to NRZ, which will operate the track. Construction costs will be recovered through offsets under a Build-Transfer-Operate model,” ther NRZ said.
The deal follows the recent commissioning of 100 high-sided wagons and three locomotives refurbished through a US$2.8 million partnership between the NRZ and ferrochrome producer Zimasco.
New Ziana
