The Tanzania-Zambia Railway Authority Managing Director – MD has disclosed that the railway company is capable of becoming a cost effective and main the transporter of fuel during the closure of the Indeni Refinery plant.
Speaking in an Exclusive interview with the Zambian Business Times –ZBT, TAZARA Managing Director Bruno Chingandu said if capacitated, TAZARA can become a cost effective and the main transporter of fuel during the closure of indeni.
He said the gains from using the railway compared to road are enormous as the railways present many social and economic benefits. While the railway may not deliver door to door, the rates are generally cheaper than the trucks.
He explained that TAZARA has the advantage of economies of scales as it can move equivalent to 30 tanks in one train load. “It therefore saves roads from damage by taking away heavy and bulky cargo from the roads hence saving the governments funds in repair of damaged roads, contributes to reduction of road carnage.”
TAZARA Managing Director added that trains also take shorter periods than the trucks at the border thereby reducing delivery time and hence costs. He told ZBT that TAZARA has in place a revitalization plan that has been approved by the Board of Directors and awaits final approval by the Council of Ministers.
Chingandu explained that in the current capacity, TAZARA and Zambia railways can move about 10,000 liters per month and have in the past demonstrated the ability to move fuel to Zambia within the service level agreements.
He said what is needed is sufficient investment in rolling stock TAZARA in order to make it main transporter of fuel. About $560 million is needed to be invested to make the railway company capable of moving the country’s total requirements.
However said, if it is the national policy to move fuel by railway, the private sector or indeed the shareholding governments (Zambia & Tanzania) could invest in some rolling stock to enable the railways to move more of the products.
