| SADC’s
Build-Operate-Transfer (BOT) railway project hailed as the largest non-mining investment
in post-independence Zimbabwe was officially launched on the 15 July 1999. The project
paves the way for more privatisation deals on the extensive National Railways of Zimbabwe
network and faster access to regional freight routes to the north. The fast track ensures that access to and from South Africa is quicker and
more efficient. Before completion, the BBR line had confirmed orders for over one million
tonnes of freight. |
“The mining sector has
expressed strong support for the BBR line,” said BBR chief executive Eitan Dvir in an
interview. He confirmed that approximately 35 percent of the BBR transportation orders
have come from the mining sector. Oil procurement by Zimbabwe through South Africa will be
furthered; it is anticipated that the transportation of at least 400,000 tonnes of oil
will be assured over the next 30 years. The US$65m BOT
project will be operated by BBR (Pvt) Limited for the next 30 years before being
transferred to the National Railways of Zimbabwe (NRZ) and the government of Zimbabwe at
no cost, according to a theme document prepared by the SADC Finance and Investment Sector
for the recent Southern Africa Economic Summit. |
The project
involved the building and rehabilitation of 317 km of line between the southern Zimbabwean
border town of Beitbridge, the busiest cargo border crossing point in the region, and
Bulawayo, Zimbabwe’s second capital city. The new line
cuts more than 200km from the current roundabout route from Beitbridge to Bulawayo, the
country’s domestic railway hub and links to other national networks to the north. It
will also significantly cut operational costs.
“South Africa’s Spoornet
will manage train services on the route, providing for a single cargo operator on both
sides of the busy Zimbabwe/SA border routes.
“Cargo rates will be collectible directly by BBR and set in
US dollars, in a hedge against the volatile Zimbabwe currency,” says the theme
document.
The BBR line will bring a new era in railway transportation —
the more direct route for freight will result in immediate savings in time and money for
transporters.
Meeting of SADC Ministers of Finance
and Investment: Communique
Trade intergration on course - Mbuende
Region needs to reverse negative
perceptions to attract investment
From Grand Baie to Maputo: All set for
SADC Summit
Mozambique: SADC's gateway to the
best
All that glitters is not gold |
