Zimbabwe opens rail network to private firms for freight boost

Zimbabwe's state-owned railway operator has opened its network to private firms to address the significant decline in freight volumes, which fell from 12 million tons annually in the 1990s to less than 3 million tons today. This decline is attributed to decades of underinvestment, poor maintenance, and a drop in agricultural and mineral output following the land reform policies initiated by former President Robert Mugabe in 2000. The situation has been exacerbated by a lack of locomotives and infrastructure issues. Despite these challenges, there is a resurgence in mineral output, particularly in chrome and lithium, driven by demand from China. Chinese companies have established operations in Zimbabwe, exporting minerals through Mozambique's ports. However, the current capacity of the National Railways of Zimbabwe (NRZ) is insufficient to meet the growing export volumes, prompting the need for private sector involvement. Grindrod, a South African logistics company, has begun contributing to the NRZ's operations by deploying locomotives and wagons to enhance freight capacity. This partnership is part of a broader trend in southern Africa, where underfunded state-owned rail operators are increasingly collaborating with private investors to revitalize their networks. The region's rich mineral deposits present significant opportunities for growth in mining projects, necessitating expanded rail capacity. The NRZ aims to restore its operational capacity with the help of private companies, which are expected to bring in additional resources and expertise. This strategic move could lead to improved freight volumes and a more efficient rail network, ultimately benefiting Zimbabwe's economy and its mineral export capabilities.