Zimbabwe Parliament says mines and companies should move 10 percent of their goods by rail

HON. CHITINDI: Thank you Mr. Speaker for your guidance – [AN HON. MEMBER: Inaudible interjection.] – Your Committee’s recommendations Mr. Speaker Sir are as follows: –

5.1. Capacity building be undertaken for road authorities to ensure that they improve on their draw down of funds from ZINARA and improve road infrastructure. In addition, ZINARA engineers should be involved in the monitoring of road works undertaken by road authorities using disbursed funds. Moreover, capacity building by the Zimbabwe Institution of Engineers and the Engineers Council of Zimbabwe in the form of refresher courses and orientation is recommended for road authority engineers to improve their workmanship.

5.2. The restricting of Air Zimbabwe, along the lines of privatization needs to be expedited. Meanwhile, Treasury support is sought with regards to the IATA Clearing House and the IOSA audit which both require about US$13m. The IATA Clearing House debt, in particular, has since shot up from US$2.6m to the current US$4.6m from, and the figure keeps on ballooning. Without the engagement and repayment of IATA fees, Air Zimbabwe remains technically insolvent.

5.3. The US$400m NRZ-DIDG-Transnet deal needs to be expedited. Meanwhile, the US$10m allocated for emergency works should be disbursed for works to commence.

5.4. A Statutory Instrument that limits the transportation of coal by road and mandates mine houses and other companies to move at least 10% of their cargo by rail should be promulgated. This will complement the recapitalization of the NRZ.

5.5. Road Motor Services should be put under NRZ. Furthermore, urgency is need on Phase II of the Zimbabwe Dry Port Facility at Walvis Bay which is four months behind schedule. This is a very profitable venture. During high seas at Beira, we are forced to us Maputo and Durban, hence the Walvis Dry Port would be a handy alternative.

5.6. Efforts be made to ensure successful negotiations for the US$153m facility for the urgent and critical rehabilitation and expansion works at the R. G. Mugabe International Airport. Your Committee recommends the involvement of local engineers under the Zimbabwe Institution of Engineers and Engineering Council of Zimbabwe in the implementation of the projects. Furthermore, local procurement is recommended with local suppliers being embedded in the National Projects Status so that they are tax exempt, thus making them more competitive. Seeing that this loan facility includes radar systems which are conspicuous by their absence thereby compromising aviation safety and income flows, expedience is called for.

5.7. We recommend that the Ministry implements the directive to half price of number plates so that there is compliance in the registration and re-registration of motor vehicles. This will also positively impact on revenue inflows.

5.8 Your Committee also recommends an upwards review of the retention funds by the Ministry from the current 5% to 10% to cater for road safety programmes.

In conclusion, the transport and logistics sector lies at the heart of the economy revival efforts of the Government, especially the cost and ease of doing business reforms. The resuscitation of this very economic enabler will greatly complement efforts in other sectors of the economy. In this light, the timeous and consistent disbursement of allocated funds and consummation of strategic partnership and loan negotiations will provide the much needed impetus for the revival of this sector and the economy at large. Nevertheless, due diligence is needed in the various negotiations to ensure a win-win situation. Furthermore, given the 1,5 million vehicles currently on the roads, it is imperative that we computerise transport management systems to reduce road carnage, ensure road worthy vehicles and spike in both revenue generation and collection for the Ministry of Transport and the Government of Zimbabwe. I thank you.

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