HARARE — Zimbabwe’s rail freight capacity is set for a major boost after Grand Rail Solutions (GRS) announced plans to acquire up to 1,160 wagons and locomot...
HARARE — Zimbabwe’s rail freight capacity is set for a major boost after Grand Rail Solutions (GRS) announced plans to acquire up to 1,160 wagons and locomotives to support the movement of raw materials and finished steel products linked to the Manhize steel plant in Mvuma.
The development follows a Strategic Collaboration Agreement between GRS, Dinson Iron and Steel Company (Disco) and the National Railways of Zimbabwe (NRZ) under a public-private partnership known as “Hook and Haul”.
The arrangement is expected to facilitate the movement of about 1.7 million tonnes of freight annually during the first phase of the project.
This will include approximately 1.1 million tonnes of coal transported from Hwange to Mvuma, while about 600,000 tonnes of steel products from the Manhize plant will be moved to markets through the NRZ network.
GRS will provide locomotives, wagons and fuel, while NRZ will provide the railway infrastructure and train crews.
GRS will also pay NRZ based on the amount of freight transported and the distance covered on the rail network.
GRS director Linos Masimura said the company was also considering the refurbishment of existing NRZ locomotives and wagons as part of efforts to quickly increase available freight capacity.
He said GRS teams were expected to assess equipment at NRZ premises before determining the number of units that could be refurbished and the cost involved.
“We are now putting everything into place for this project,” Masimura said, adding that the company had started receiving offers from suppliers in South Africa and India.
The first phase is expected to begin with 14 locomotives, with GRS considering both purchasing and leasing equipment while waiting for new orders to be delivered.
Masimura said the company was also assessing options from China, particularly because of developments in railway technology.
The planned investment comes as Zimbabwe seeks to shift more bulk freight from road to rail, particularly commodities such as coal and steel that require large-scale transportation.
NRZ public affairs and stakeholder relations manager Andrew Kunambura said the collaboration would also involve upgrading the railway line between Gweru and Mvuma.
The second phase of the project is expected to upgrade the Gweru-Mvuma railway line at an estimated cost of about US$27 million.
The upgrade is intended to allow the line to handle significantly higher volumes of freight generated by the Manhize steel project and other industrial activities in the region.
A further phase will involve the construction of a railway line linking Manhize directly to Mvuma.
According to NRZ, the planned railway link will cover about 50 kilometres, while the broader project has also been described as a 54-kilometre connection between the steel plant and Mvuma.
The line will be developed under a Build-Transfer-Operate model, with GRS financing construction before transferring the infrastructure to NRZ for operation.
Construction costs will be recovered through an agreed offset arrangement.
The wider railway development is valued at about US$125 million and is expected to provide the Manhize steel plant with a dedicated rail connection to the national railway network.
Disco chief executive officer Benson Xu said the steel producer was positioning itself as an anchor customer for NRZ, with reliable rail transportation considered critical to the development of Manhize into an industrial and export hub.
NRZ Acting Chief Executive Officer Ainah Dube-Kaguru said the agreement represented an important step towards rebuilding Zimbabwe’s rail freight system and supporting productive sectors of the economy.
The development comes as Zimbabwe continues to pursue industrialisation and infrastructure development, with rail transport expected to play a greater role in moving bulk commodities.
The Manhize steel project is expected to generate significant demand for transportation of coal, steel products and other industrial inputs.
The new arrangement could therefore provide NRZ with increased freight volumes while reducing the reliance on road transport for bulk cargo.
It also comes against the background of efforts to restore NRZ’s ageing fleet and improve its ability to meet demand from the mining and industrial sectors.
Last month, NRZ commissioned three refurbished locomotives and 100 wagons at its Harare facilities.
The refurbishment was carried out at the railway operator’s Bulawayo Mechanical Workshops and supported by a US$2.5 million investment from mining company Zimasco under a public-private partnership.
Zimasco funded critical spares and consumables valued at approximately US$2.46 million for the refurbishment programme.
The latest collaboration with GRS and Disco represents a further expansion of private-sector participation in the rehabilitation and modernisation of Zimbabwe’s rail freight system.
If implemented as planned, the Manhize-Mvuma project will create a dedicated rail route for one of the country’s major emerging industrial projects while increasing freight traffic on the NRZ network.
