In an exclusive interview, Deputy Minister of Transport and Infrastructural Development, Morgan Komichi, said since the government was bankrupt, NRZ should find other ways to finance itself.
“NRZ requires serious rehabilitation of the railway-lines, signals and replacement of obsolete locomotives that are now expensive to maintain,” he said. “The government is struggling to raise $1.45 million for NRZ to secure a deal that would result in it acquiring 14 locomotives from a Chinese company,” added Komichi.
In a separate interview, NRZ spokesperson, Funwell Masikati, said the 14 locomotives cost $29 million. According to Komichi, the Chinese company initially required a 10 percent downpayment, which NRZ paid, but they suddenly increased it to 15 percent. Currently NRZ has 61 locomotives out of a normal 110.
“For NRZ to break-even they need five million metric-tonnes and in 2012 they managed 3.7 million metric-tonnes,” said Komichi.
However, Komichi said with continued economic growth, NRZ was on a slow path to recovery. “At least, 95 percent of NRZ revenue comes from freight services and during the economic meltdown before the Government of National Unity, NRZ lost most of its customers in the mining, agricultural and industrial sector to logistic companies.
“The carrying of heavy goods such as coal, granite stones and quarry by heavy vehicles has led to the rapid dilapidation of the country’s roads,” he said.
Meanwhile, NRZ workers have gone for over seven months without salaries and Komichi said government, the rail services unit and the workers’ committee are engaged in negotiations to come up with a lasting solution.
Post published in: Business