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.
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