THE Tanzania-Zambia Railways Authority (TAZARA) could be forced to halt operations at any time after accumulating debts of up to $45m.
A company source told the Dow Jones Newswires services yesterday that TAZARA had failed to pay its workers’ salaries since August and most of its 12 locomotives between Tanzania and Zambia have been taken out of service.
The operational problems at the railway have led to a huge pileup of transit cargo since September this year, the TAZARA official said.
’’Only three cargo locomotives are operating, the company is on the verge of collapse unless the governments of Zambia and Tanzania urgently rescue it,’’ the official said, adding that the reduction in operations last month has hit revenue badly.
The line is the main link for land-locked Zambia to the Tanzanian port of Dar es Salaam and the principal export route for copper and cobalt from Zambia and the Democratic Republic of the Congo’s (DRC) Katanga Province.
Last month, Zambia’s Transport Minister, Dora Siliya, said TAZARA needed an immediate injection of up to a staggering $100m to enable it to operate efficiently.
TAZARA currently only has 300 of the 2,000 wagons it needs and has been working at around 40 per cent of its capacity since the start of the decade.
Siliya told Dow Jones Newswires yesterday that talks between Zambia and Tanzania to find a solution for TAZARA are in the advanced stages.
However, she could not say whether the two countries would be able to raise the necessary funds in time to prevent the company from collapsing.
TAZARA is also facing various legal suits from creditors, including suppliers and contractors, as well as former workers.
Early this month, the TAZARA workers’ union also threatened to strike over unpaid salaries.
Since September, Konkola Copper Mines, Zambia’s leading copper producer has resorted to exporting the commodity by road, mainly to South African ports.
Experts warn that the dilapidated state of the 1,860-km railway, which was built in the early 1970s, threatens not only operations but could also lead to serious accidents.
The governments of Tanzania and Zambia had agreed to privatize the railway to a Chinese firm with the capacity to run the railway profitably.
A study has already been concluded by the World Bank and audit firm, PriceWaterhouseCoopers, on TAZARA prior to its planned privatization.
The railway line, which has been dubbed ’Uhuru Railway’ runs from Dar es Salaam to New Kapiri Mposhi in Zambia. It was built between 1970 and 1975 by the Chinese government.
TAZARA’s performance has declined in the past decade, during which traffic volumes have fallen by half from around 1.2 million tonnes a year.
ThisDay
Someone offered to take over operations but banamukanina politics
chabipa am no. 1
oh forgot numer 1 and 2 today since everyone is saying
Kama masebo wanchiga #2
Now to vote for PF to change kaili!!!!
are these the good economic policies rb and mmd are boasting of. shame. we are failing to manage even what is already there, how can we create something
We seriously need to usher in new leadership to shake things up in the country..Lets vote out MMMD
Only village concept can save Tazara! Vote wisely
It seems that the closer SAta gets to plot 1 business are closing the doller gets wase or is it that they are pulling there finances out???
The economy and international plus business with investors with the head of state go hand in hand be careful who you put in state house we are after all a global village why should a leader reduce us to a small detached country and scare everyone off.
Mamayeee!Guys nanvela scared chabe.Zamtel fyaipa,Tazara fyaipa,Zesco na load shedding, bunga nenzo gula 56 pin lelo,manzi yalimo na bog powder.Ah tate ah RB fast asleep, ambuya ah Levy ana komboka ku Paris.Ba HH bakamba chizungu,nenzo supplia ku Mopani,bamene bana amba pruning 800 workers,ba KCM chabe chamene chi furnace chenzo kupya,nankala ka good supplia 5 years, bakamba ati cost cutting ati copper fybwera bwera mitengo ni $3,600=00 ma rumours ati ngani $3,500=00 bakomboka,amama neyooooooo, dollar yaitaya!
No amount of refinancing will make sense until there is restructuring of the organisation & effective Managers put in place,these should Managers who look for other avenues of getting revenue for the company instead of depending on ticket sales & cargo haulage sales.
Many companies these days invest in other ventures instead of depending on the core business they are into.
What do you say ba dora siliya!..
Mwebantu where are we going kanshi!Umwenso ine.Nanvela fear manje.Please my fellow PF supporters,avoid violence whatever the outcome of this election.We will ruin our country further.The whole world is in recession right now.The little we have is all we’ve got for us to make a better Zambia.Be it SATA(the best)RB or HH let’s be wise,peaceful and calm.This Tazara story must be worse than it is on LT believe me.Meanwhile rb is donating ama 15 metre kubena Nevers!
Bushe Tax tulipila where does it go.Nanaka nayo nabakese isala ka SIDO kandi I’m not paying anymore.Tazara was the pride of this country.Yaba!OK but apa pena I’m upset.Ciniza kamba kamba pa LT but manje lelo ahhh it’s too much enough is enough elo naiwe chi Sata nga twaku votela ukese muku pena pena te?We’ll see.You get our vote but ama nonsense panse people are suffering, ba Tazara taba fola from August manje.Mudala humble yourself now!!!
I thought it collapsed some years back
To begin with, I would like to thanks in the sealltr as well as informative access. I will have to acknowledge which often, We have not heard concerning this information. We now have observed quite a few new information with regard to cause. Many thanks a lot for providing this effective as well as interesting information. We’re waiting around pertaining to other thrilling posts due to you from the nearest long term.
Ba LT bring ilyashi lyabuchende chali kale.
#16.Ponyax wapangwa shani? Request that after November the third
# 9 these are matters that are beyond his supporters’ understanding. Remember Hitler also came in as a populist vote. dictatos have a way of having a way with the crowd. watch what he will do when comes to power. He has already shown us a glimpse in the past.
No 9 Uchipo get your facts right since u can use the i/net you must have some kind of education:The whole world economic order ‘s gone hay wire and has nothing to with SATA. As for TAZARA current gvment is to blame-how can TAZARA fail to perform with all the traffic volume from Dar to any stop in Zambia. We need innovations such as encouraging those getting their cars from Japan through to use the railline instead of driving which is risky as long as there’s security and quick delivery-simple things can bring alot.
I hope that v in coming president will seriously look at this mode of transport as it one of the cheapest mode of transportation wici if propperly managed can booost our growing economy and wit the coming up of new mines.It therefore need serious and urgent attention.I owaz wonder wat has happened to tis mode of transport as its now very rare hearing v horn of v train like it used to wen we were young.May we work at reviving tis mode of transportion for the seek of us poor pipo who cnat afford luxury and comfort buses on the market for transport.
With RB in power we should expect more of this everything is going the way of NAMBOARD VOTE Sata for guaranteed development PaaaaaaaaaaaaaaaaaaaaBBBBwwwwwwwwwwwwwwwwwwwwwwwwaaatttttoooooooooooooooooooooooooooooooooooooooooooooooo
#10 pilot, is it true mopani will be pruning 800 workers, what a pity for zambia.
Who cares? Not me! Ring a person in Zed and they will tell you we ae fine and getting rich. Why would I bother? Let Tazara close. The fat is there are a few people who have beneited and do they give it a monkeys? No.
Who cares? Not me! Ring a person in Zed and they will tell you we are fine and getting rich. Why would I bother? Let Tazara close. The fact is there are a few people who have benefited and do they give it a monkeys? No.
That is why we need economic recovery, viva HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
#19 Seen it Before
I understand where you are coming from my point is that with the wrong people in power some of the economic problem are accelerated. ie with bush in power everything in the US at the moment seems doom and gloom.
And not so far from home Zim Mugabe they would probably be in the same shoes as everyone else but because of who is in power its wase than it should be. in such period you need to confince people to but money in the economy and give out freebees and Sata does not strike me as the type of person to do that coz he is a one man show.
#26
correction
confidence from people with manoy to put in economy and not give out freebees as promised not for a few things but almost everything then how do we get ourselves out of such a situation.
We are meant to work hard to revive our economy and not be lazy coz gov will give us free staff
#22 so it has been rumoured.40 per cent cost cut of which 10 per cent cost cut may be labor giving us about 800 jobless chaps.Already they have scaled down on the number of contractors and suppliers considerably the Mufulira plant is practically looking deserted.
Dont dare waste your ballots! Whoever you send to state house will be stealing and employing relatives and be corrupt because absolute power corrupts absolutely. Abstain to show your hate for the current crop of thieves pretending to be able leaders!
Interesting stuff!!! Someone seems to think we can do the AIG kind of stuff here as well.
This is very sad everything seems to be falling apart. I dont envy the next president cos he will be in trouble; Zamtel is limping, local authorities are none existant, now tazara, next it will be zesco. Guys these problems go beyond politics and unless the politicians realize that we are in big trouble not even HH alone can do anything to change this, maybe Sata if he applies his arrogance in the right direction, forget about RB as he is ganging up with outcasts he cn never make developmental decisions so help us GOD!!!!
#19 Uchipo- Thanx for the response. I do not how old you are but if you are as old as me (72) you will know the Kaunda story-we enjoyed very prosperous 14 years and all the while Kaunda was turning the country socialist(dont know even if understood it)until the copper price fell that’s when we saw the bad side of his policies. As for SATA I have one example to give you: Engineers opposed him over the great East Road fly over bridge and suggested that the Railway be shifted West of Lusaka to which he told them that were they ready to keep on shifting the Railway/Station with the growth of Luaska. Wish ZNBC can show us those clips instead of adverse ones
They will score agony with there chief Kaponya.He has even skipped a medical review bcoz of hunger 4 plot1?
#19 Good comment. Once my learned brother told me that its us so called educated people who have let down our beloved country. The world econonmy is down and we are being told that it wont affect Zambia.Hello……… . Even in better economies like RSA,the Rand is weak today as it was Six years ago. Now tell me how does Sata come in? Even when the Kwacha is strong how does it benefit chaps in the villages?
33 No vulgary just discuss level headed or are you sorry that you…
sata to be in plot ome next week vote him inn 2molo good lucky
# 28 Bring back ZCCM and allow indignous to buy shares.Qualified Zambian outside professionall are not failing.
#34 REAL DATA in put appreciated see how Mugabe wit 7 University Degrees has messed up the Zim country, Bush see how he is panicking because he does not what ha hit the economy… stocks tumbling, price of real estate sliding. See if the boasts by MMD by of policies will mean anything with the impending reduncies on the mines due to poor copper price. See if that one who said now people are driving will see those cars gotten on Barclay loans will roll.Of course they will blame SATA because he is illitrate.
I am just from listening to the MMD rally and the NGP president publicly confessed that MMD has failed to provide job opportunities to more than 80% Zambians! In the last 17years of their leadership, all we have are Ministers becoming more and more rich and hardworking Civil Servants becoming street vendors and depserate destitute in their own country. If there as ever been a time we needed Change, it can not be better than NOW! RB has married ALL the politicians the LPM [MHSRP] ‘divorced’…its really shameful that he can want to work with pipo like VJ, Chris Temboa and FTJ…Chiluba is a very proud thief! banda is a very desperate old man! VJ is a crook…we all HIM.
VIVA PF!!!
Some tell what is happening at woodlands and post a photo if possible
LT you are being malicious why use a Zambia Railways picture on a TAZARA story!
GUYS KUVOTA FYE…..MAILO LESS TALK MO ACTION!!!
#42 Abena Zambia- Yes this talk is making us sweat water will tommorow’s action make us sweat hight blood pressure.
Instead of bailing out TAZARA the government should just use the $45 million to build the benguela rail line so that we could be importing fuel direct from angola.
CEO, CFO and the board must be sacked!
Its high time people learnt that you just don’t seat back and wait for something to start failing apart and then start looking for money to inject in it. You have to constantly maintain its efficiency by ensuring that its operations are up to date and running on new technology too. Otherwise you are outdated! Zambian business (Public or Private) should learn to forecast and use their profits wisely……
oh no!!! Trouble in woodlands?? Someone do tell please. I care less about the post though. They are not practising true journalism
Let us give glory to the allmighty for keeping Zambia in one piece during this very trying momment of the compaign period.May the love and mercy of our lord and serviour jESUS christ be upon mother Zambia so that we vote peacefully for our new leader. And may GOD grant us the wisdom to accept what we can change and what we cant ,and to give us knowledge to understand the difference between the too.
GOD BLESS ZAMBIA.
Hallo!!!!can some1 tell me wats happening at woodlands, am dying to hear please. Ba Sata pa plot 1 cum 1st nov. we want change so every1 pa bwato fye. pa cb tulecelebrata!!!!!!!!
LT why use Zambia Railways picture?
LT am disappointed with you why use a Zambia Railways photo. please remove it or put a note to clarify that the two companies are not one and the same
Never mind building a railway line (built by China) we can’t even run a railway system on our own. And we are still insulting investers.
Celebration celebration ba PF tamwishibe ifyo mulecelebrata. Iyo ba MMD tulolela twakobeka elyo tucelebreta.
I think we should question Tazara management. My understanding is that Tazara is co-owned by the two govts, Zed and Tanzania, as shareholders. It is the responsibility of Management to manage on behalf of shareholders, commercially and profitably. Of course the shareholders should kick out non-performing managers. If the 2 Govts exerted undue pressure on Tazara, e.g not to charge economic transport fees, then they are to blame and they should bail out Tazara. Do the two Govts mutually impose constraints on Tazara? Is it too much debt, if so, who borrowed? Tazara needs to tell us what they think is the cause of this problem.
#54 contd. I just can’t see any single motivation for Govt interference in Tazara. I stand to be corrected. It is obvious in the case of Indeni and Zesco, for instance. The Govt co-owns Indeni and regulates fuel prices in Zambia. So you can only make so much profit on fuel. Similarly Zesco cannot charge economic tariffs because the Govt will not allow it, as most households can’t afford. Furthermore, rural eletrification will be hampered. The low electricity tarrifs make it difficult to attract investment in power generation, the returns/profits are just not big enough. It will take forever to break even. But for Tazara, I just fail to see any immediate govt interference.
How can we have Doreen Siliya as transport minister. No wonder things are not working. Its not just about talking but action is needed. Thats the problem with MMD.
And someone wants to build another GRZ railway in NW. My Foot!!
But Zambia twalishalila
ba siliya abwali too much.. you are not working….
Look around de world now, me say everyting crash and mash up.
Most companies in Zambia are not doing fine because they are operating below break even. There is need to inject cash in odinary citizens through better pay in order to promote ‘normal spending patterns’
What qualifications does Dora Siliya have that make her a competent transport minister? Why do these leaders appoint ministers like they are blind, deaf and unintelligent? Ala talema nama nonesense.
Vote for Sata and he will be burying these dead companies one by one. Does he have means of bringing them back to life again. All we need is a govt that cares to put credible men to run Tazara. As at now only MMD can do something. After 3rd Nov, things will change for the better. Vote RB!
Dont worry, My husband whom I love so much will fire all the managers and hire PF cadres to run it. PF cadres are good managers.
He will construct a new railway line using Zim Dollars. By the way, Robert Bob Mugabe is coming for my husband’s inoguration on Sunday. He will tell him to construct a new railway line.
Ah! Yaba! forget my husband.. He gave me $1000000000.00 for child support. I only bought a loaf of bread. I did not realise it was Zim$! and was worth only um! $
Vote RB!
If GRZ cannot run it..why not privatise it???…WORD OF ADVICE TO GOVERNMENT OFFICIALS..YOU HAVE TO INVEST ONCE IN A WHILE!!!!..THE INFRASTRUCTURE WILL NOT RUN ON PRAYERS ALONE!!!!
TWO RAILWAY LINES CANNOT BE MAINTAINED IN ZAMBIA. JUST WAIT FOR SATA.
VOTE HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH VIVA HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH FORWARDHHHHHHHHHHHHHHHHHHHHHHHHH WAKE UP FELLOW ZAMBIANS……………….
Hena TAZARA yamana sunu nobantu?It was gasing all along nothing strange about this company ask those who used to enjoy subsistence allowances and free passes.Look back nchinzi chakalubila???????????FORWARD!!!!!!!!!!!!!!!!!
Sad to learn this information. I wish the new Zambian President will resuscitate the company.
I rest my case……………..
the problem in zambia is that most managers have degrees in bootlicking and airport dancing. when it comes to actual performance, zilch. go to the airport to welcome the president, number one!
#72 I CONCUR WITH YOU!THATS WHY WE ARE NOT MOVING FORWARD.EVEN INSTITUTIONS LIKE UNZA WITH SO CALLED INTELLECTUALS CAN GO FOR FIVE YEARS WITHOUT BEING AUDITED.BUSHE EDUCATION KU PASA FYE AMA EXAMS?THATS WHY EVEN WEALTH IS IN THE HANDS OF THOSE WE CLASSIFY AS UNEDUCATED.WAKE UP ZAMBIA!!!!!!!!!!!!
#63 TAWAKWATA AMANO!!WANYA NABA MMD.MUKALYA LEGACY IYO INE.THE CHAPS HAVE BEEN IN POWER FOR 17 YRS AND RB CAN JUST COME AND REDUCE ERTILISER TO 50PIN?HOW?I THOT HE WAS GOING TO BE TALKING BOUT REVITALISING NCZ.YOU MUST BE BROKE WHERE EVER YOU ARE.MIND YOU EVEN IN THIS HARSH ECONOMY WE MANAGE TO TRAVEL TO EUROPE WHILE SUM OF YOU CHAPS CANT EVEN COME TO ZED FOR A HOLIDAY.VIVA PF!!!!!!!!!
Africans as usual with poor managemment. Are we a cursed race? I don’t get it how we can fail to run such an operation when manpower is readily available and funds are coming in from customers that use the service. For now the solution is to reduce on manpower, renovate the railway infrastructure, and improve upon customer service to attract more customers. The chinese helped us construct the rail line, why should we hand over operations to them and yet we have a lot africans with management skills? If we don’t change our attitude on self sustainment, we shall be perpetual beggars. It is a shameful situation we are in. Maybe Muzungu must come back to rule us again.
Imwe ba MMD the story is not about SATA its about TAZARA. Kanshi muletina tefyo?
Is there anything in zambia thats not failing? sad state of affairs, we need serious change
Tazara managers are not sensible enough to run the company,they need to be sacked.
LELO LELO LELO LELO LELO LELO LELO LELO
FINALLY OUR TIME TO BE VINDICATED HAS COME!!!!
OUT WITH BANA NJOVU AND ALL THE STAFF AT THE ZAMBIAN EMBASSY IN RUSSIA ALL YOU PARTY CARDERS WILL BE NO MORE NI PA BWATO FYE!!!
TWANAKA NAIMWE PA POMPWE!!!!
LELO LELO LELO LELO LELO LELO LELO LELO
Sad reading. TAZARA is life line for Zambia worth maintaining at all costs. Dora Siliya do not let this issue rest otherwise we shall be in mess.
We got too many trucks on the road which have taken away business from the rail lines. Kavindele is fighting to build a Railway line from Chingola to N/Western Province when we are not even able to maintain the line that connects us to a key port. Let us set our priorities right as a nation.
Come to think of it, how is the other Railway company or companies doing. Is this a problem in the industry or is it only Tazara that is struggling. How is ZR’s performance, whatever the new name may be. Could it be that our railway sector is struggling to cope with competition from the road sector. I know on the passenger side, the road transport has attracted massive investment and we have buses and coaches that can compete with any in the world. But when it comes to bulk freight, surely the rail guys must have a field day, if only they did their act well. Is ZR doing better than TZR? Someone help me on this one, please.
#81 ZR (whatever the new name) is operating in the same lines with Tazara. Although ZR is under majority foreign shareholders their operations leaves much to be desired a case late LPM (MHSRIP) threatned to revock their operating licence. On the part of ZR, staff moral is low, conditions of service are pathetic and employees are not treated with respect. A number of things need to be addressed in the rail sector. The market is there, it appears to me the problem lies in our government and the companies themselves to reposition themselves and increase investment through infrustructure development, timeliness and satifying customer and employee needs.
Chipangano! I R D P
Fascination is Power……….. bring back the Diesel engineers from germany! The chinese built the rail line but the Locomovtive Engines are german make.
#82 Thanks for the info.
If the market is there, then these rail operators are not serious business people, they shouldnt blame anyone. May the govt do whatever they need to do to improve the matter.
Being landlocked and centrally located, Zambia can position itself to be a hub in this part of Africa. Rail and road transport are key to that. I hope the Govt look at this as a strategic position in regional trade. After all we are members of Comesa and Sadc. Hope we have enough brains and strategists in our Govt.
Some of these small busines who uses the Railway line will collapse with TAZARA, can someone please come on the scene and save the transport company. This is the duty of Government,not just talk without action. Not only are we talking about the company but also the number of people who will lose employement, Ba Banda solve this problem before going to South Africa.
Another example of poor management in Zambia. At this stage GRZ will almost have to pay someone to take it over. Privatisation is the only answer, but goodness knows who would be willing to take over an enterprise that relies upon the stability of two African Governments. Some serious long term guaranetees would be needed.
To begin with, I would like to thanks in the saltelr as well as informative access. I will have to acknowledge which often, We have not heard concerning this information. We now have observed quite a few new information with regard to cause. Many thanks a lot for providing this effective as well as interesting information. We’re waiting around pertaining to other thrilling posts due to you from the nearest long term.