Rail deal targets 1.7 million tonnes of Manhize freight a year

A new partnership between Grand Rail Solutions (GRS), Dinson Iron and Steel Company (Disco) and the National Railways of Zimbabwe (NRZ) is intended to shift large volumes of coal and steel onto rail, with the first phase targeting 1.7 million tonnes of freight a year for the Manhize steel plant.

Under the arrangement, GRS will supply locomotives, wagons and fuel. NRZ will provide access to its rail infrastructure and train crews. Coal is to be carried from Hwange to the plant near Mvuma, with finished steel moved onward to market.

NRZ says the initial phase is expected to carry 1.1 million tonnes of coal and 600,000 tonnes of steel products annually. The steel cargo will include pig iron and billets. GRS will pay NRZ a charge based on the volume transported and distance travelled.

GRS director Linos Masimura said the company planned to refurbish NRZ equipment as well as acquire additional locomotives and wagons. He said GRS was considering suppliers in South Africa and India, while it continued assessing options in China. The company was also exploring leasing equipment to get the service started while purchase orders were fulfilled.

Masimura said an initial 14 locomotives were expected within two weeks. GRS teams were due to inspect NRZ’s available equipment and estimate refurbishment costs before deciding how many units could be restored.

“So far in terms of refurbishments, our teams will this Thursday (today) visit the NRZ premises for assessment so that they will inform us on how many units are available and the estimated costs to repair, and then we take it forward,” he said.

The agreement also sets out infrastructure work beyond the freight operation. NRZ public affairs and stakeholder relations manager Andrew Kunambura said a subsequent phase would involve upgrading the Gweru-Mvuma track at an estimated cost of US$27 million to accommodate higher traffic volumes.

A further phase would build a rail connection from Mvuma to the Manhize plant under a Build-Transfer-Operate model. In a statement, NRZ said GRS would finance construction and transfer the line to NRZ, which would operate it, with construction costs recovered through offsets.

The three parties signed the agreement in Mvuma on Monday. At the ceremony, NRZ acting chief executive Ainah Dube-Kaguru said the partnership would support freight-rail renewal and the productive sectors of the economy. Disco chief executive Benson Xu described the steelmaker as an anchor customer for NRZ, saying dependable rail logistics would be important to the plant’s development as an industrial and export hub.

The Manhize project is expected to generate demand for the movement of raw materials, steel products and other industrial inputs. The partners say shifting bulk coal from road to rail could lower transport costs and help improve the competitiveness of Zimbabwean products.

The agreement comes as NRZ works to restore capacity across its network. Last month, the railway operator commissioned three refurbished locomotives and 100 wagons in Harare. NRZ said the work, undertaken at its Bulawayo Mechanical Workshops, was supported by a US$2.5 million contribution from Zimasco through a public-private partnership.

The programme forms part of the government’s National Development Strategy 2, which includes efforts to encourage private-sector investment and revive rail transport.