National Railways of Zimbabwe expands capacity through steel and coal transport deal

The National Railways of Zimbabwe (NRZ) has entered into a strategic collaboration agreement with Dinson Iron and Steel Company (Disco) and Grand Railway Solutions (GRS) to expand rail transport capacity. The partnership, operating under a build-operate-transfer model, aims to facilitate the movement of approximately 1.7 million tonnes of freight annually during its first phase.

Key logistics include the transport of 1.1 million tonnes of coal from Hwange to Mvuma and 600,000 tonnes of steel products from the Manhize plant to various markets. GRS will supply locomotives, wagons, and fuel, while NRZ will provide the rail infrastructure and train operating crews. To support this, GRS plans to acquire up to 1,160 wagons and locomotives, with initial phases potentially involving 14 locomotives.

The deal also involves the rehabilitation of an 80-kilometre rail section between Gweru and Mvuma at an estimated cost of $27 million, followed by the construction of a 50-kilometre line linking Mvuma to the steel plant. This initiative seeks to shift bulk coal transport from road to rail and revitalize NRZ's freight volumes, which have declined significantly from their 1990s peak.