M a r k e t N e w s
Africa: It Is Good That Tazara Is Making Profit Again
Posted on : Thursday, 18th August 2016
We are so much delighted to share with our readers the good news from Lusaka, Zambia about the Tanzania-Zambia Railway Authority (TAZARA), which made 13.50 million US dollar profit in the 2015/2016 financial year as it makes steady progress towards fulfilling its great potential.
It 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, according to a communique issued by TAZARA Board of Directors at its 108th meeting held on Friday last week in Lusaka, Zambia.
The railway line has also made significant improvements in both the inter-state and commuter passenger train operations.
It 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$44.10 million.
The communique pointed out that the TAZARA Act of 1995 is under review in the two countries in order to make the Authority more business-oriented through decentralisation as well as recapitalisation of the firm.
We are delighted as scores of turnaround measures to the jointly owned railway firm seem to be paying off as it has snapped loss making trend that has been its infamous tag for years due to a number of reasons including underfunding and poor management.
We commend the government of the People's Republic of China for injecting US$ 376 million into TAZARA for the rehabilitation of the railway infrastructure as an integral part of the Southern Africa regional rail transport network.
It was sad and discouraging indeed that the once-thriving railway line whose terrain has involved a feat of engineering, hardship and bravery second to none, was hopelessly struggling despite huge transport demand in the region.
We believe TAZARA has what it takes to raise output and revenue generation. It should make optimal use of its great potential to capitalise on ever growing transport demands in the region. It is up to the court of the governments of Tanzania and Zambia to see to it that the success obtained are sustained by addressing problems that impede the growth of the railway line.
Source : allafrica.com
