The National Railways of Zimbabwe (NRZ) and Grand Railway Solutions (GRS), a Dinson Group subsidiary, have signed a strategic rail partnership that will see a new railway link constructed between the Dinson Iron and Steel Company (DISCO) plant at Manhize and Mvuma, existing rail infrastructure upgraded, and rolling stock deployed to move coal, coke, steel and other minerals, Mining Zimbabwe can report.
By Rudairo Mapuranga
The agreement places rail transport at the centre of logistics for DISCO, with GRS set to provide investment capital, locomotives, wagons and operational expertise, while NRZ will provide its existing railway infrastructure and remain the train operator.
The initial budget for the new Manhize-Mvuma railway link, covering about 54 kilometres, is estimated at approximately US$125 million, according to GRS Director and founder Linos Masimura.
Masimura said the project would initially focus on supplying rolling stock to transport coal and coke from Hwange to the Manhize steel plant and moving finished steel from DISCO to domestic and international markets.
“The ultimate aim is to have enough rolling stock to move coal, coke, steel and other minerals,” Masimura said.
He said GRS would also construct the rail connection between Manhize and Mvuma in partnership with Dinson, before upgrading the existing Mvuma-Gweru line to a capacity compatible with the wider NRZ network.
The partnership will initially combine the purchase and leasing of locomotives and wagons, with GRS planning to eventually establish wagon refurbishment and manufacturing capacity at one of the workshops used during construction of the steel plant.
Masimura said the long-term objective was to bring more bulk cargo currently transported by road onto the rail network.
The development is expected to provide DISCO with a dedicated and more efficient logistics route for both inbound raw materials and outbound steel products, while opening opportunities for other mineral producers and industrial users to shift bulk cargo from road to rail.
NRZ targets major freight volumes
NRZ Acting Chief Executive Officer Ainah Dube-Kaguru said the agreement represented an important opportunity for the railway operator to rebuild its freight business around the growing industrial activity at Manhize.
She said NRZ had historically benefited from the movement of bulk cargo associated with Zimbabwe’s steel industry, including coal from Hwange and iron ore, and saw the revival of steel production at Manhize as an opportunity to restore significant freight volumes.
“We remembered our Zisco Steel then. The traffic we were moving for Zisco Steel, it was so much coal. Over 500,000 tonnes from Hwange,” Dube-Kaguru said.
She said the agreement covered three key areas: construction of the approximately 50-kilometre rail connection to Mvuma, rehabilitation of the Mvuma-Gweru section and the movement of cargo to and from the Manhize plant.
Dube-Kaguru said NRZ could immediately begin moving coal and coke from Hwange, with the existing Hwange-Gweru railway line capable of handling longer trains.
She said the Mvuma-Gweru section required rehabilitation, meaning traffic could initially be divided at Gweru before being moved onward to Manhize.
According to Dube-Kaguru, NRZ currently moves approximately 98 percent of its business in freight, with passenger services accounting for about two percent.
She said the Manhize business could provide an initial freight volume of about 600,000 tonnes a year, equivalent to roughly 50,000 tonnes a month.
The arrangement would also allow empty wagons used to deliver coal and other inputs to Manhize to carry steel on the return journey to export destinations, improving the efficiency of the rail system.
Maputo, Beira and South African markets
Dube-Kaguru said NRZ’s immediate export routes would include Maputo and Beitbridge, while longer-term plans include extending the network towards Nyazura and ultimately Beira.
The broader rail strategy could therefore connect Manhize and DISCO with multiple domestic and regional markets while opening the railway network to other mining and industrial customers.
For DISCO, the importance of rail extends beyond the movement of finished steel.
DISCO Director Benson Xu described the steel plant as an industrial hub for production, processing, value addition and exports, saying reliable rail logistics would be critical to its growth.
“DISCO is not only a steel plant, it is an industrial heart, a centre of production, processing, value addition, and export. For that heart to succeed, reliable, efficient, and competitive rail logistics are essential,” Xu said.
He said the partnership brought together NRZ’s infrastructure and operations, GRS’s rolling stock, investment and operational expertise, and DISCO’s cargo requirements.
Xu said the objective was to move bulk cargo from road to rail, create capacity and support Zimbabwe’s industrialisation.
Rail to support mineral exports
Masimura said the partnership could also support Zimbabwe’s broader mineral trading infrastructure by providing more reliable movement of commodities to warehouses and export ports.
He said reliable rail would give buyers greater confidence that large mineral consignments could be moved to their destinations on schedule.
The planned expansion of rail capacity could therefore extend beyond DISCO, with GRS intending to identify other mining and industrial customers whose bulk cargo is currently moved by road.
The development also creates scope for greater local participation in railway equipment manufacturing.
Masimura said GRS initially planned to purchase and lease wagons and locomotives but would eventually refurbish and manufacture wagons locally at a workshop associated with the construction of the DISCO plant.
The partners said the success of the agreement would ultimately be measured by the actual movement of trains, cargo, jobs and skills rather than the signing ceremony itself.
