Zambia Railways seeks US$ 922 million for 5 year rehabilitation plan-CEO

Zambia Railways seeks US$ 922 million for 5 year rehabilitation plan-CEO

Zambia Railways says it is in the market seeking US$922 million capitalization for its 5 year rehabilitation planZambia Railways Chief Executive Officer Christopher Musonda revealed in an interview with Railways Africa that this part of the five year strategic plan which has since been approved.Mr. Musonda said the firm is in talks with financiers for the proposed five-year business plan which includes a USD$922 million capital injection, for existing operations.He said he could not name the financiers as talks were currently underway.

He also outlined the upcoming procurement of 40 new locomotives and 2000 specialised wagons, under the rehabilitation plan.He said so far, ZR have leased 12 locomotives from Transnet of South Africa to help achieve the targets of moving 30 percent of cargo from road to rail in line with the new Statutory Instrument.Mr Musonda also noted that the passing of the SI on movement of heavy cargo ha seen a jump in tonnage by 25 percent and a 22% rise in revenue.

The CEO further revealed that Zambia Railways currently employs about 1,000 direct employees and around 300 contractors, making its staffing levels one of the highest.He said there is need to increase production given the high number of workers employed by the company.Mr. Musonda stated that the feasibility studies that will soon be underway will inform the firm on how the financiers will recoup their investment.

Source:Lusaka Times