Stakeholders in the underperforming railway sector have demanded that Zambia Railways Limited-ZRL management should come out in the open and explain where and how the $120 million Eurobond that was injected in the company was utilised when the railway sector has remained in a deplorable state.
Speaking in an exclusive interview with the Zambian Business Times-ZBT, a source who asked to have their name withheld said a US$120 million Eurobond was injected to revive operations at the Zambia Railways Limited between 2012 and 2013 but up to date, nothing much has changed. The new UPND government should conduct an enquiry and inform the public on what really happened.
The $120 million Eurobond was given to Zambia Railways to undertake the rehabilitation of the track, purchase of locomotives and purchase of wagons.
“If the said three things were not done, then the money was misappropriated but only ZRL management and Government officials at the time should answer that question, because government has the resources to do a forensic audit”, the source said.
“When we asked if the Eurobond was used for the intended purposes, the response has been for anyone to go to Zambia Railways and see if any wagon or Locomotive was bought and if not, then the answer is plain for all to see. Secondly, was the track rehabilitated? Partially yes but speeds have gone down to 15km per hour on average” the source added.
Some stakeholders have noted that in essence, Zambia Railways has no track that can sustain the economic development of Zambia as at now and this explains the market share that the rail has of less than 10% meaning 90% goes to the road, which puts a lot of pressure on the roads.
The source mentioned that the state of the track right now is worrisome as there are no short to medium or long-term measures in place adding that the only measure is to have a wagonload of concrete sleepers put at strategic stations to mitigate and respond to derailments.
“Ultimately the medium to long-term action is to actualize the recapitalization process, Zambia Railways is in dire need of recapitalization to survive and the track must be given priority but we all want to know where the $120 million went or was utilized”, the source said.
The state of roads has become a major concern with more road traffic accidents being reported. The alternative to road travel which is more cost effective is the railway system, but this has also collapsed with trains having speeds of about 15km per hour, which are not viable. While other African countries have invested and upgraded to electric trains, Zambia does not seem to have a clear plan of action in this area.
