The National Railways of Zimbabwe (NRZ) and Zimasco have commissioned three locomotives and 100 high-sided wagons refurbished under a US$2.8 million Public-Private Partnership (PPP) aimed at easing logistics bottlenecks for chrome and ferrochrome exports.

The rolling stock is expected to boost movement of bulk minerals to regional ports.

Speaking at the commissioning ceremony, Mutapa Investment Fund Chief Executive Dr John Mangudya said the initiative showed the national rail backbone was being revived after years of mining and agricultural growth outpacing logistics capacity.

He said the fiscal budget alone could not fund the overhaul of infrastructure and rolling stock, hence the decision to invite private sector participation.

Under the model, high-volume freight clients invest directly in refurbishing out-of-service rolling stock in return for dedicated usage and incentivised freight rates.

“NRZ gains business and revenue while the mining firm is assured of reliable movement of its ferrochrome and chrome,” Dr Mangudya said.

He said shifting NRZ into the Mutapa Investment Fund had refocused oversight on performance, commercial viability and wealth creation, adding that every locomotive and wagon returned to service advances the National Development Strategy and Vision 2030.

He commended NRZ for undertaking the refurbishments locally, saying it demonstrated local engineering capacity and supports jobs and technological self-reliance.

Dr Mangudya said NRZ will require US$600 million in the medium to long term to close infrastructure gaps, procure new rolling stock and upgrade workshops, with engagements underway with China Railway International Group (CRIG).

He also outlined ongoing interventions, including the refurbishment of three locomotives under a CBZ loan facility due by 31 December 2026, the leasing of four Sheltam locomotives, a US$6 million Ecobank facility for 520 wagons, and a US$115 million Afreximbank facility for 10 new locomotives, 315 wagons and track rehabilitation.

Commissioning the assets, Transport and Infrastructural Development Minister Felix Mhona said a functional railway is critical to achieving upper-middle-income status by 2030.

“Rail is the most cost-effective, bulk-carrying and safest mode of transport for heavy industrial and mining output,” Mhona said.

He said the Zimasco deal ensures a reliable supply chain to Beira and Maputo for the miner, while expanding NRZ capacity without immediate pressure on the fiscus.

The Minister reaffirmed government’s commitment to recapitalising NRZ through track rehabilitation, signalling upgrades and new rolling stock, and urged other bulk cargo players to emulate the model.