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Saturday, July 11, 2020

TAZARA reaps US$13 million profit

Economy TAZARA reaps US$13 million profit

Dr Leonard Chamuriho (L) and Zambian counterpart Engineer Misheck Lungu during the meeting
Dr Leonard Chamuriho (L) and Zambian counterpart Engineer Misheck Lungu during the meeting

The Tanzania-Zambia Railway Authority (TAZARA) says it has made a profit of US$13.50 million for the just ended financial year of 2015 to 2016.

The jointly owned railway firm has since projected to generate about US$44.10 million in the 2016/2017 financial year due to a turnaround in business and cost-effective operations.

TAZARA has attributed the profit to improved business resulting from increased haulage from 87,000 metric tons of freight in the 2014/2015 financial year to 130,000 metric tons in the 2015/2016 financial year.

This is according to a communique issued to ZANIS in Lusaka today by TAZARA Board of Directors at its 108th meeting held on 29th July, 2016 in Lusaka.

Dr Leonard Chamuriho who is Tanzania’s permanent Secretary for Transport and Communication signed the communique together with his Zambian counterpart Engineer Misheck Lungu as joint chairpersons of the TAZARA Board.

The communique also points out that TAZARA has made significant improvements in both the inter-state and commuter passenger train operations.

The board has since approved a projected haulage target of 381,000 metric tons of freight and 2,280,000 (interstate and commuter) passengers to be transported in the 2016/2017 financial year that will culminate into total revenue of US$44.10 million.

According to the communique, the Board urged management at the railway firm to actively pursue non-rail business activities in order to supplement its revenues.

The communique further states that TAZARA Management has been directed to be more aggressive towards creating and accommodating proposals for Public-Private Partnerships.

The TAZARA board urged Management to expedite the conclusion of the proposed partnership with the Copperbelt University at the TAZARA Training Centre in Mpika, Muchinga Province as an area for enriching capacity building for the Authority.

The communique pointed out that the TAZARA Act of 1995 is under review in the two countries in order to make the Authority more business-oriented through decentralisation as well as recapitalisation of the firm.

The Board also noted the concerns expressed by customers of TAZARA and other stakeholders in the transport sector in Zambia and Tanzania, on the impact of the introduction of Value-Added Tax on services for goods transiting through the Port of Dar es Salaam.

The TAZARA Board resolved to request the Dar es Salaam Corridor Committee to quickly undertake an independent study and advise on the competitiveness of the Dar es Salaam Port in light of the fiscal policy to other regional ports and the potential impact on TAZARA.

Meanwhile, the TAZARA Board of Directors has strongly directed its management to discontinue the renewal of contracts for retired employees and instead allow younger employees to take over the positions left by exiting staff.

The government of the people’s republic of China together with Tanzania and Zambia are exploring ways of resuscitating and improving operations of the jointly owned railway firm.

Recently, China pledged to inject US$ 376 million into TAZARA for the rehabilitation of the railway infrastructure as an integral part of the Southern Africa regional rail transport network

TAZARA was founded over 40 years ago when Chairman Mao Tse-Tung, Julius Nyerere and Kenneth Kaunda, founding fathers of China, Tanzania and Zambia respectively, visioned connecting East and Southern Africa to promote and sustain regional trade, and social economic development.

However over the last two decades, TAZARA has been under-performing and experienced deterioration in infrastructure due to lack of investment.

TAZARA Board meeting
TAZARA Board meeting

Dr Leonard Chamuriho (L) and Zambian counterpart Engineer Misheck Lungu during the meeting
Dr Leonard Chamuriho (L) and Zambian counterpart Engineer Misheck Lungu during the meeting

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  1. That’s interesting and promising at the same time that the Railway has now started to make profit after a long, long while. Indeed review all previous acts and bring in new pipo and ideas so that next year, the company could double up its profits. That establishment is capable of employing many young people roaming the streets of Dar and indeed Kapiri mposhi, way to go.

  2. Making a profit from thin air!!!!! This is the company the chinese have wanted to take back – why would they if it has been profit making & paying it’s dues?????? Where has that traffic come from, when the biggest commodity to transport, copper has been digging up all the roads in zed?????? Engineer fimo fimo can you please enlighten us!! What are you transporting & who are you clients???? OR IS THIS ALL SUPPOSED TO BE COTTON WOOL PULLED OVER OUR EYES, LEADING UP TO 11/8/2016??????

    VOTE WISELY 11/8/2016!! Vote Zambia forward!! Vote UPND!!

    #chagwamustfall!! #PamaFikuyabebele!!

    I thank you!!

    • Really laughable …Even a marketeer being given free hand outs and transport can record a profit in the first financial year.

  3. I am just scratching my head here as the numbers simply do not add up…the Chinese injected close to half billion recently and you make a profit that financial year…on top of that they have given you FREE locomotives and track maintainence; I just hope this money will be invested back into the business and to loan repayments AND not on those guy’s bonuses seated there.

  4. Easterners, can you please help us – What does the name “Lungu” mean???
    We want the right interpretation rather than just assume that people with that name are basically born LIARS, & thus when they do so, they are just conforming to the norm!!

    We have chagwa – whose lies, we have lost count, now we have this Engineer Fimo fimo telling us of an almost in a flash turn around of an almost infamous white elephant!!

    Vote WISELY 11/8/2016!! Vote ZAMBIA FORWARD!! Vote UPND!!

    #chagwamustfall!! #PamaFikuyabebele!!

    *** Diasporans – I encourage you to phone all your close relations back home, ask them to vote Wisely!! Vote Zambia Forward!! People back there have either lost hope on politics & feel they can’t be bothered to vote becoz they are all the same, especially with so many…

  5. ….so many party defections – what they don’t realise is that this is a crucial vote TO CHANGE THE STATUS QUO & hopefully start afresh – YOUR VOICES WILL INFLUENCE CHANGE, WE NEED TO REJUVENATE OUR HOMELAND!!

    I thank you!!

  6. This may be misleading, that $13.5 million is generated revenue and not profit! Bankers
    how do we find a profit?

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