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TAZARA seeks 450 mln USD as additional re-capitalisztion boost

Xinhua,May 09, 2018 Adjust font size:

ARUSHA, Tanzania, May 8 (Xinhua) -- The Tanzania Zambia Railway Authority (TAZARA) said on Tuesday it's been seeking 450 million U.S. dollars as an additional re-capitalization boost.

Bruno Ching'andu, TAZARA managing director made the request for the additional re-capitalization during the launch of its freight management system plus two locomotives and 10 wagons -- all renovated -- in Tanzania's commercial capital Dar es Salaam.

He said the new funds would enable the company, which is jointly owned by the governments of Tanzania and Zambia, to raise its cargo transportation volumes from 250,000 to 600,000 tonnes per year, and thus reach the break-even point in its operations.

Makame Mbarawa, Tanzania's Minister for Works, Transport and Communications, retorted that before requesting further funding, TAZARA should focus on cutting costs in a top-down manner.

The minister said the starting point should be the company's "bloated management" that he claimed is consuming a chunk of its finances and should be slashed from 15 to just eight officials.

"Our two governments are finalizing the rules that will facilitate the trimming of the TAZARA top management as a way of bringing about efficiency and productivity," Mbarawa said.

The trimming process should also go down to TAZARA's regional offices in Tanzania, with only workers with real value and potential to be spared, he added.

He insisted that because the government's target is to reduce unnecessary running costs within the company, there is no way out regarding the workforce trimming.

"The way TAZARA operated in previous years is not the same as it is operating now... necessary measures should be taken to revamp it," Mbarawa said, adding that it would be better to invest in more on-the-ground manpower than keep spending money on suit-and-tie officials who have little practical value.

He commended the company's decision to conduct the renovations using its internal revenue sources, and added that the government is "planning to procure 40 traction motors to be fixed in locomotives to transport more cargo." Enditem

 

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