PRACTICAL SOLUTIONS TO CHALLENGES FACED BY RAILWAYS IN THE REGION The Case of NRZ Harare, 15 October 2015 THERE IS NO BETTER WAY THAN THE RAILWAY.

PRACTICAL SOLUTIONS TO CHALLENGES FACED BY RAILWAYS

IN THE REGIONThe Case of NRZ

Harare , 15 October 2015

Na t

ion al R

a i lw a y s o f Z im

ba bwe

N R Z

THERE IS NO BETTER WAY THAN THE RAILWAY

Scope of Presentation

1. NRZ’s resources and their current state2. Efforts to Address Resource Challenges3. Current challenges faced by Rail in the Transport Industry4. Response to the challenges5. Conclusion

THERE IS NO BETTER WAY THAN THE RAILWAY

NRZ ResourcesLocomotives Coaches and Wagons

Equipment aged. Locos s.e.d. 1965-1993 Wagons s.e.d.1950- 1982 Coaches s.e.d. 1951-1998

Deferred maintenanceAccident damagedPoor availabilityPoor reliability of locomotivesWagons not fit to carry exportsCoaches in very poor state

THERE IS NO BETTER WAY THAN THE RAILWAY

NRZ ResourcesLocomotives Coaches and Wagons

THERE IS NO BETTER WAY THAN THE RAILWAY

NRZ ResourcesInfrastructure

Track damage due to derailements Signalling and electrical- theft and vandalism of

equipment, obsolescence

THERE IS NO BETTER WAY THAN THE RAILWAY

Decline in Business Moved

THERE IS NO BETTER WAY THAN THE RAILWAY

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20091000

3000

5000

7000

9000

11000

13000

15000

12215

95388920

8174

6313

5005 53605985

5021

3873

2602

Efforts to Address Resource ChallengesLocomotives and Wagons

Locomotive Refurbishment: tug-of-war

Wagons: Workshop overhaul and bogie lifts

Finance: PPP’s and proceeds from scrap

Good effort but not enough

THERE IS NO BETTER WAY THAN THE RAILWAY

Efforts to Address Resource ChallengesInfrastructure

Tracks- speed restrictions reduced from 17% in 2010 to 10% of track length- PSIP funding: tug-of-war

Rail- bought 12 000 tons (133km) (own resources)- Re-railing worn out sections Upgrade Theydon Matinhidza

(53/70 km done) Replace cracked rail on

Bulawayo-Vic Falls line 90 km used

THERE IS NO BETTER WAY THAN THE RAILWAY

Efforts to Address Resource ChallengesInfrastructure

Signalling and Communications Establishment of trains to

control centre voice communication networks

Vic Falls-Bulawayo: UHF/VHF

Bulawayo- Harare: Microwave radio

Dabuka- Chicualacuala: UHF/VHF

THERE IS NO BETTER WAY THAN THE RAILWAY

Efforts to Address Resource ChallengesInfrastructure

Signalling and Communications GPS on locomotives for tracking

trains Introduced Integrated Trains

Control System (ITCS), now developing software for issuing movement orders to trains

Developed LAN/WAN network system-wide, and cargo tracking system

Joint development of optic fibre networks and sharing of base stations with local mobile phone companies

THERE IS NO BETTER WAY THAN THE RAILWAY

Efforts to Address Resource Challenges

THERE IS NO BETTER WAY THAN THE RAILWAY

2009 2010 2011 2012 2013 20142000

2500

3000

3500

4000

4500

2602

3446

3927

3725 37693853

Business Moved (000 tons)Efforts assisting in

recovery, but not enough to restore to full capacity

More comprehensive solution required

Currently in discussion with some potential financiers

Issues From the Market

Rapid growth of road freight transport sector Taking over of traditional bulk business Wide range of players- broad menu of solutions High flexibility and quick response to changes in market

conditions, e.g. spot rates, response to fuel prices Competitive rates on the basis of back-hauls Traditional advantages: door to door, fast delivery

THERE IS NO BETTER WAY THAN THE RAILWAY

Issues From the Market

Customers demanding more…… Falling commodity prices- pressure on rates Highly reliable service, don’t want to hold stocks Decent delivery times, consistency Margins growing smaller- cannot absorb losses due to thefts,

accidents Require end-to end solution, not just rates

THERE IS NO BETTER WAY THAN THE RAILWAY

Response From the Railways- FlexibilityThe Beira Corridor Case Study

The need for containerization Reduced port-handling charges- straight into stacks Maximize payload, reduce rates: two

containers/ per wagon with payload

of 25 tons/ container

(excl. container tare weight):

upgraded wagon suspension Axle load restriction: NRZ upgraded to 18.6t/axle with speed restriction, CFM

upgraded to 17t/axle. ZRL- no issue. Net result, 2 containers x 23tons net payload each.

Unit train requirements 1 000 tons payload required per train. ZRL- no issue. CFM- no issue. NRZ:

Harare-Mutare section, 2 GT22, not enough, 3 GT22 too much. Ran trials for GT26.

THERE IS NO BETTER WAY THAN THE RAILWAY

Response From the Railways- FlexibilityThe Beira Corridor Case Study

Rates, rates… and total logistics costs Benchmark against road back-haul rates One through rate offered to customer- railways discuss internal

division of rate Approached ports for favourable rates and terms Identified business for return loading for sustainability

Resources Contribution of wagons from NRZ and ZRL into a pool dedicated to

the business

Delivery times 10 days Kitwe- Beira (6 days Beira –Lusaka achieved) Harmonized train service

THERE IS NO BETTER WAY THAN THE RAILWAY

Response From the RailwaysChrome Ore

Rates : harmonized between NRZ and CFM

Wagon capacity “ …with a little help from my friends”

TFR CMR Wagons

THERE IS NO BETTER WAY THAN THE RAILWAY

CONCLUSION

Solution based approach and

flexibilityThank you

THERE IS NO BETTER WAY THAN THE RAILWAY