Over $130 million (about KR 650 million) is required to recapitalise the Tanzania-Zambia Raliway Authority (TAZARA) into a self sustainable railway line.
At a TAZARA Board of Directors and Council of Ministers meeting in Lusaka recently, management revealed that the bi-national railway system faced a huge challenge of working capital and sustainable capacity.
TAZARA Managing Director, Akashambatwa Mbikusita-Lewanika, said the company has since identified a three phase strategy comprising of an immediate injection of $32 million (about KR 160 million) working capital, a Medium Term Investment capital of $100 million (about KR500 million) and long term capital whose exact cost is yet to be determined.
Mr Mbikusita-Lewanika said the immediate injection of $32 million would positively impact on TAZARA to attain self sustainable operations of about 700, 000 tonnes per annum within seven months.Mr Mbikusita-Lewanika said this in a statement issued to ZANIS in Lusaka yesterday.He stated that the medium term investment of $100 million would provide TAZARA with a self sustainable capacity of over one (1) million tonnes per annum within two (2) to three (3) years.
He stressed the need for determination, preparation and implementation of long term capitalisation, adding that the cost for the third phase of the investment should be taken up by the shareholding governments.
Mr Mbikusita-Lewanika disclosed that the company has outsourced experts to work on business and strategic plans to position TAZARA as a good investment venture.
Meanwhile, Mr Mbikusita-Lewanika’s contract as Managing Director for TAZARA came to an end on 20th February and has since written to President Michael Sata to thank him for the opportunity to serve the people of Zambia.
In his letter dated February 22, 2013 and headlined “Completion of Contract: Gratitude and Appreciation for Opportunity and Support to Serve as TAZARA Managing Director,” Mr Lewanika said he was grateful to President Sata and the government of Zambia for the public service opportunity given to him and the financial and political support accorded to TAZARA during his tenure.
He explained that he had completed his three years contract of service as Managing Director of TAZARA as well as the one month extension period given up to the 20th February 2013 meeting of the council of ministers.
Mr Mbikusita-Lewanika also informed the Head of State that TAZARA’s biggest constraint was poor availability and reliability of locomotives and wagons which he said triggered a vicious cycle from a shortage of operations and reinvestment to inadequate and untimely provision of fuel, spares, and other materials.
[ZANIS]
Just give it to Prof Chirwa
I thought Aka resigned his Tazara position ? Good to know that the man is still there.
I do not understand why the toilets in the first class of TAZARA continuously smell and sits to the train dinning and bar are given to third class ticket holders instead of being used as relaxation venues for passengers. This does not need recapitalization but merely being tidy. I have used the train three times and am now fed up with the untidiness of the train. It should not require the Executive Director to ensure tidiness in the train, TAZARA has two Country Regional Directors & a lot of other senior managers. The passenger train is as dirty as the TAZARA houses along the line of rail and in Dar es salaam. Don’t blame everything on lack of funds. Surely, it does not require funds to stop selling sits in the dinning room, bar & toilets, & confine other people in their sleepers.
My bro’, you are absolutely right,TAZARA does not even need recapitalisation,just get rid of a black MD,blacks in other senior management positions finish. The rail line has got huge potential now a black man is a cancer,go to dar even a ticket seller is a boss and even has a guest house and drives a pajero,come to zambia one boss even connected a pipe in to his office from the main diesel tank disguised as water. Bwafya go to nakonde and see ho many trucks cross in daily and assume all those containers were carried by tazara. Black man is a curse
Tazara need support from the two governments and both Zambian workers and those of Tanzania should rise above cheap and selfish way of working and work as one.We do not support the way goods especially Copper is delayed to reach the port of Dare-salaam were some people sometimes say ivi vawa Zambia bwana this is for zambians.Let us rekindle the spirit of brotherhood which was started by MWALIMU KAMBARAGE NYERERE and the great son on Africa KENNETH KAUNDA.
We also employ to the government of Zambia to put a policy that all the goods above 30 tons should not road but move by road.This will help us maintain our roads as it is more expensive to rehabilitate the road infrastructure than rail.Mr AKA we thank you for your service at Tazara and wish you Gods blessing as you take up another job.
I meant goods above 30 tons should not move by road but by rail that should be the government policy.
I agree with number 3 a Mr Liswaniso that we do not have to wait for MD to do some repair at the Kapiri-Mposhi railway Station were the roof is leaking and the booking office is in a dilapidated state and fit to be called an office of selling tickets.Both building Dare-salaam and Kapiri railway station need proper attention.The trains Mukuba and Kilimanjaro need their window lock to be replaced.Its shameful were by one has to put a piece of stick to open the window.Can someone look at this.Also Toilets should be flush-able not those buckets of water.
Ba AKA, you have been there for sometime now. My worry is each year you have been there you always just cry for more money for TAZARA, TAZARA needs so much, etc. When are you going to improve the company? Have you failed. Do you make profit? You can’t keep asking for more money from other sources when you can earn it yourself. Is it a sign of incompetence? How many years have you been there and in each and every one you always just asking for more money. Change the mindset. You have to make money from that white elephant, thats the job you have. As long as the trains are rolling you can make money there. If you have failed let other do it. We can’t eat your plentiful words. Don’t contribute to the down fall of TAZARA. You earn so much and you must make profit in return.
Learn to read, Aka is telling you his contract has come to an end, he even offered to step down when PF came to power. So why don’t you the genius offer your services to improve TAZARA instead of constantly being an arm chair critic.
TAZARA does not belong to Zambia alone, it requires a serious meeting of minds for the 2 stake holder Countries to invest in operations. Partnerships work well if both parties are in agreement. Relationship between the 2 Countries at the level will always remain beyond control of who ever the MD of TAZARA is or will be.
Aka has articulated what needs to be done, take it or leave!
Aka how long are you going to be crying for more money? please we re tired of you
Thanks for the effort and selflessness. Tazara was a set up to tarnish your image but you went carried your self with dignity through out. Better and bigger things are coming your way.
He has just left it worse off than he found it. Talking a lot alone is not good enough. Goodbye with your big pay from the ever running down giant. You are welcome to another talking platform.
Its high time the Govt. looked at raising funds from other sources forget about Euro-bonds and look to windfall taxes from our copper. These miners are transporting $ millions worth copper cathodes to Dar every month worth more than $130 million via TAZARA…let them pay for it via a windfall tax.
This is why I strongly support the revamping of ZRL once you have an efficient and viable ZRL..it will create a ripple effect or benchmark within the country and neighbouring countries to improve their transport links….the SMEs and people will eventually be the main benefactors.
I appeal to the appointing authority to give Mr AKA another contract. He deserves it, honestly.
I have got doubt you are joking
This AKA is a non performer ,he will just waste our money.
The letter does not state whether the man seeks to have his contract renewed or has resigned. Anyway, this is how Black , MDs write. Any achievement during the 3yrs? or he just enriched himself?
The issues with Tazara need to be addressed at a bilateral level. At inception Nyerere and Kaunda were thinking at the same level. Now the Tanzanians believe we are benefitting off their backs and would love to have a Tanzanian in charge that is why they sabotage every zambian MD. I believe Tazara and ZRL need atleast 60% private investment and 40% govt to be able to function efficiently and profitably. Well done Aka, even under difficult if not impossible conditions. Posterity will always judge you fairly.
Having browsed through the previous contributions i deduce the following:
In Oct 2011 Aka did offer his resignation and requested both governments to invest about 3/4 Billion USD as recapitalisation.
The PF government kept Aka,for reasons best known to themselves,but no investment came through.
Once again,Aka has offered to leave and tabled what is required to be done inorder for TAZARA to be revived but again Zeeeee.
Tanzania does not have much to lose and so GRZ should compel the mining companies to use the rail and invest heavily in it in return for reduced taxes.
Our roads will last longer and TAZARA will awaken without being mortgaged.
Win Win.
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