Categories: Stories

Zimbabwe planning to ban bulk road transport  to boost national railways

Transport and Infrastructural Development minister Joram Gumbo yesterday said government will revive struggling National Railways of Zimbabwe by outlawing bulk transportation of goods by road.

“That is the way to go and (banning bulk transportation of goods by road) is what we are planning to do because if we allow big trucks to ply our roads, they will actually destroy them and there would be continuous rehabilitation of the roads. It is something that we are considering,” Gumbo said at the inaugural infrastructure development conference held in Bulawayo alongside the Mining, Engineering and Transport Expo (MineEntra).

He was responding to a question by chairman of the Parliamentary Portfolio Committee on Transport and Infrastructure Development and Chegutu West legislator, Dexter Nduna, who wanted to find out what the government was going to revive the NRZ.

The ban would be through a statutory instrument (SI), Gumbo said.

“We will not be the first ones to do that,” he said.

The SI would be good news to the struggling NRZ, which has been incapacitated due to lack of business, a situation which arose due to the parastatal’spoor reliability.

Recently, it slashed salaries by up to 50 percent as it continues to face viability challenges amid declining business volumes and charges of mismanagement.

A report by the Auditor General on NRZ’s 2014 accounts showed that its freight unit was generating annual revenue of $91.2 million, but incurring costs of $103 million.

The passenger unit had annual revenues of $3.2 million, with costs over three times more at $10.9 million.-The Source

(103 VIEWS)

Don't be shellfish... Please SHARE
Google
Twitter
Facebook
Linkedin
Email
Print

This post was last modified on July 21, 2016 6:33 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Top 20 countries in debt to China- Zimbabwe is not one of them

Ten African countries are amongst the biggest debtors to China, but Zimbabwe is not among…

May 1, 2024

Is Zimbabwe now on the right track?

The Reserve Bank of Zimbabwe’s Monetary Policy Committee, which met on Friday last week, says…

April 30, 2024

Watch: RBZ governor warns those selling ZiG at 20:1 could be buying it at 10:1 in June

Zimbabwe’s new currency further weakened to 13.4407 to the United States dollar today down from…

April 29, 2024

US loses its place as most influential power in Africa to China

The United States lost its place as the most influential global power in Africa last…

April 27, 2024

Zimbabwe central bank chief says street forex dealers cannot destabilise the ZiG

The Reserve Bank of Zimbabwe governor John Mushayavanhu says street money changers who cash in…

April 26, 2024

Zimbabwe International Trade Fair plans to turn exhibition centre into commercial complex

The Zimbabwe International Trade Fair (ZITF) has announced an ambitious long-term plan to turn the…

April 25, 2024