The Industrial Development Corporation (IDC) Board has approved an investment of $850 million into rail infrastructure and rolling stock for Zambia Railways Limited (ZRL).
IDC Group Chief Executive Officer Mr Mateyo Kaluba, said the investment is important because it is a wholesome package which attends to the entire capacity constraints of ZRL.
“Previously, interventions made were for specific challenges that Zambia Railways Limited had. We want to have a holistic approach to the intervention”, he said.
Mr Kaluba said the growth of ZRL was paramount as it plays a key role in the growth of the Zambian economy.
He said it is for this reason that the IDC fully supports the transformation of ZRL from an ordinary rail company to a total logistics provider.
Mr Kaluba further added the transformation of ZRL directly fits in with the IDC value addition objective, where each company in the IDC group is expected to play a role in value addition in the country.
He noted with delight the improvements in tonnage by 31% and revenue by 25% in the last two years since the IDC took over as shareholder.
However, he said ZRL must diversify its revenue sources so that the nation can have a strong company that can have the right impact on the country as a whole.
He said SI number seven which mandates 30% cargo is transported by rail, reinforces the Corporations’ resolve to enhance capacity of ZRL as currently, the speed and capacity is not where it should be.
Mr Kaluba was speaking to the media, during a familiarisation tour of ZRL in Kabwe recently.
Meanwhile, ZRL Managing Director Mr Christopher Musonda said he was happy the IDC Group CEO and his entourage had taken time to visit ZRL headquarters.
He further said the next tour would include Mulobezi and Chililabombwe so that the shareholder has full knowledge and appreciation of what happens in the rail system.
All because of President Lungu.
Thanks
BB2014,2016
The correct question is… will the money be used for the core projects?
This is where we need to change things and let auditors work side by side with the project to completion.
Never mind the cost… better spend a little on auditors to secure quality completion of the entire project.
Let’s develop this thing. Zambia is changing for better. He is UNELECTABLE but he can dream or Hallucinate. No problem. It is a free world.
Dr Chonya – If these empty tins did things by the book we would have the best trains at the best price for those figures but they will simply single source everything from China overpriced and under vaulue
HH will oppose.
Did Maggie set aside these funds in the budget? Zambians lets ask probing questions for a change…these fooools have to accountable
Is IDC funded through the national budget.
A nation without a reliable rail transport system can never develop. All the major economies of the world relied and still rely on their rail way transportation system. We need to see the reconstruction of railways for instance Luanshya to Ndola, Chingola Kitwe, Kalulushi Kitwe and so many other areas that were vandalised by the likes of Kambwili and others. Let this whole process be well audited as we cannot afford to slip. Railways are the answer to our cargo delivery problems. A great initiative but one that must be executed well.
It’s $850 million down the drain. What did they do with the $120 million Euro-Bond money? Where are Prof.Chirwa’s bullet trains? PF are a bunch of jokers.
Where has Euro-Bond gone? This is more money down the drain.
What happened to the Euro bonds of $120m? Where is Prof Chirwa?
HH took it H-away.
Only on paper, already gone.
One minute IDC is borrowing $50 million from ZCCM IH next its investing $850 million…This article is so thin of information …how did they come with this figure, where is the funds from and where are they going to use it on? Is it going into development of the line…what happened to the $120 million? I remember Chriwa was asking for similar figures…where is this money going to? Procuring cheap overpriced Chinese locomotives.
You are correct – this article is thin on information.
Narratives like ”wholesome package which attends to the entire capacity constraints of ZRL” .worries me because they are difficult to hold accountable. Without a business plan i guess the government will use the money for terminal benefits for retirees just to save face, bye -4l4ctions, presidential trips and only a small portion will go to ZRL Mark my words.
This is the problem …$850million is a lot of money to just use fancy terms like “Wholesome package” not everyone is like the lad on the threads who just cheers blindly …this may be $850million going to Chinks and AVIC using cadres as subcontractors there is nowhere stating that they did a feasibility for 2018. Its the same reckness over and over again
The Batoka Gorge will cost $1 billion dollar and Animo Farm didn’t say anything about it. He will NEVER be a President no matter how much you whinny.
@Sharon your tribalism S T I N K S, not even my puppy would condone it at this time and age. There is something seriously wrong with you.
Such investments are important but the money must be spent proportionately and in a transparent manner. In any case, we already have the raw materials and the labour. What is essentially needed is quality works under expert supervision to ensure quality service as someone has already pointed out.
You know for sure that PF dont work like that …they first find a funds ie $1.2 billion then they cost the project accordingly…if they have $20million and a 2 km gravel road needs tarring they will cost it $20million.
ZRL is the Bermuda triangle, the black hole, the sink hole of the Zambian industry. This money will be gulped, but njanji will remain yojujuka.
An other loan to be shared among a den of thieves, this money wont be used for the intended projects 50 million dollars is for the private jet and at least 25 million for our dander head president to travel all over the works the rest, u guessed it salaries that they haven’t been paying for months now, so of of will be a partial repayment to the Chinese loans, what ever happened to those ambulances!!!!
This is a loan from where again? Did I miss something in the article?
I thought IDC is a Zambian Govt entity in which all Parastatal companies fall. In other words, it is a Parastatal company of all Govt Parastatals if you will. The only difference is that the Industrial Development Corporation was setup to be independent and make investment decisions as they see fit….and this, it appears, is one such decision.
So this is local money/capital within the IDC which is being invested in one of the several Parastatals within the IDC. At least based on this article alone, that would be the correct conclusion to make. I may be wrong, but this is not a loan from the Chinese that you love to hate so much.
Peace of advice to my elder brother Chriss, we your young brothers plead with u that we don’t want a repeat of a Ero bond saga where trees naba mwankole bonse mwapentelakumo. Use the money wisely. If at all it will be used on the track please imingwala nama shovel twakana. Engage a qualified contractor like Mont Angel who did the Mozambican Railway Line. Ba Chriss twanaka nama derailment and useless enquiries which don’t even yield positive results.
Its wishful thinking …they already have a Chink contractor in mind and on site probably even borrowed directly from China who will get this strategic asset to transports raw materials to China and dump rubbish in Zambia when you fail to repay….where on earth has IDC stumbled on close to a billion just like that, something somewhere has been sold!!
Me thinks the railway is just being used as cover to borrow more money……if PF were serious about the railway line, they should have built or started building a 2nd parallel line and upgrade the existing one…..with dry docks at each end and forced 50 to 60 % bulk transportation using the rail.
Financing would have been guaranteed.
Let’s roll…
??????? Trib.al Jay Gay, please point out one thing which has been done correctly.
For a moment let’s put your trib.al Hacks aside. I know it is difficult to compare, for example, road project unit costs between Botswana and Zambia kilometre for kilometre. In Botswana the lanscape is desert like, very few trees to clear and very few rivers to cross with expensive bridges. So although your trib.al Hacks writes to the Chinese ambassador about the cost of the Lusaka- Ndola dual carriageway, as an “economist” (if at all he passed the subject well) he may not be aware of such technical elements. The existing road alsi is essentially worn out. So taking all these etc into account, ask trib.al Hacks what would be hus new estimate for the project which by the way we need like last year.
You are simply typing gibberish about things you have no understanding of …and I have told your dumba$$ that tribalism is alien to me!!
Nincompoops like U.P.N.D Cadre, & rancid decomposed Sharon cannot articulate simple issues without mentioning Tr1balism.
We all know these P.F Cadres are the biggest tr!balists out there hence they bark tr!balists with every sentence.
Zambia is a failed States that cannot even hold credible school exams, let alone a General Elections, as the leader rewards such dunderheads with Government positions, coz they are the loudest sycophantic noisemakers. Good example is dense thicko, Father Frank Bwalwa
PF Govnt really means business and thats why Kalusa (Kainde) does not sleep because he knows too well that removing this working Govnt wont be easy like UNIP or MMD!!!!It is very clear that PF officials learnt a big lesson from MMD’s 20 years of misrule and none development.PF Govnt has touched all sectors of our economy.MMD killed ZRL.Thanks to PF today ZRL is back on track and there is real life in Kabwe!!!Please pump money into mulungushi textiles too.
Our hard working Govnt should go further and reopen firms such as Lenco,UBZ,Mwaseni shops,Mansa batteries,plus many more!!!Kainde should be ignored 100% because he is an anti-development creature!!!
KEEP IT UP YOUR HE ECL!!!
LT likes your comments tremendously.
Njimbu – we know you have access to LT Admin hence you up the thumbs up when you feel like it….you don’t even know where they got the funds from? Folly of the highest order..The mean business when they have put the country in debt.
Contd….also consider the impact of rainfall on the road, Botswana is a dry country compared to Zambia.
You have no understanding of what you are saying I deal with such issues in an in-depth day to day basis!!
Bakapoli nakabili chalila ukubika mu pocket yabo. This money will not make any impact because the same politicians have trucks that transports copper from NW to RSA. How true will they abundon their trucks and take up the railway – transport? This money is going into PF ( Pick Folders) pockets. NASULA
My poor Zambia investing in old relic technology while Ethiopia and Kenya are building completely brand new Standard Gauge railways with fast trains .Who bewitched Zambia for its backwardness?
How much does that new technology cost and are you going to support Govt if they did that? Just look at some of the anti-development comments here and you know what would happen. And that’s the biggest problem we have in our country today, too many envious empty tins of anything done in other countries but they don’t want to pay for similar projects back home….as though these things are cheap or free!
Uganda too is in the planning stages of their SGR railway why not Zambia.
Like others have said, this LOOKS LIKE MONEY DOWN THE DRAIN!!The railways system is hard to run in these times of liberalized economies especially as a landlocked country! If we have an efficient railway system internally which does not link optimally with an import/export port, the resources will NOT yield significant gains!! I would rather this amount is invested in plantation agriculture to create industries especially in rural areas where we have built roads but nothing economic to transport on them! if indeed we have so much thirst for railway lines why not join Kavindele and complete the NW Railway project which links Benguala line and to Lobito and Luanda Ports!! US$850m is way too much money to play around with just like that where the Public has not even been told about the…
Me thinks the railway is just being used as cover to borrow more money……if PF were serious about the railway line, they should have built or started building a 2nd parallel line and upgrade the existing one…..with dry docks at each end and forced 50 to 60 % bulk transportation using the rail.
Financing would have been guaranteed.
I DID A FEASIBILITY STUDY ON ZAMBIA RAILWAYS WE NEED US$4 BILLION TO CONVERT THE SPEED TO BULLET TRAINS SO THIS IS GOOD NEWS , GIVE THE MONEY TO ENOCH KAVINDELE TO DEVELOP NORTH WESTERN RAILWAYS PLEASE
Zambia doesn’t need bullet trains ,it only needs modern SGR cargo trains for haulage business so the railway can pay for itself.Business should come 1st over wasteful joyrides.
Why recycle old railways and invest in old technologies? At this time we should be inaugurating Lusaka subways and country wide bullet trains.
Wow, all these good idea! But how are you going to pay for all of that if you are against borrowing at the same time? Contradictions never ceases to amaze me!
KEEP ON WORKING HARD ITS FOR BETTERMENT OF COUNTRY AND UP COMING GENERATION ZAMBIA NEEDS SUCH KIND OF DEVELOMENTS TO KEEP OUR ECONOMY BUSTING
I am missing something here.Does it mean that the IDC conglomerate has become so awash with capital money from dividends received from its constituent companies thus far? If so,let this money be used prudently unlike what happened with the Euro bond.Infact let this money be used as a revolving loan among competing companies within IDC.
850 million us + 120million us euro bond now that’s a lot, aim not a business man but would it be right for ZR to connect to Angola the cheap fuel can be supplied to Malawi , Zimbabwe ,DRC
Zambia railways have business plan for the money mentioned in the article. However this mount does not cover the track rehabilitaion which is estimated at 1.3 billion US dollars. Zambia railways has apparently asked grz to fund this part of the investment.
Since IDC seems to have a lot of money to flush down the drain, they might as well pay the eurobond on our behalf.
The money will dissappear in thin air like a fart.