PREPARED BY AUGUST 2019

ANALYSIS OF THE RAILWAY SECTOR Research and Analysis Division ©2019 Policy Monitoring and Research Centre (PMRC) – STRUCTURAL DEFICIENCIES AND WAY FORWARD [email protected] | www.pmrczambia.com SUBSCRIBE NOW: [email protected] INFOGRAPHIC

The railway system in Zambia is an extensive network of Performance of Limited, ZRL (2004-2017) surface transport connecting all major centers of economic LINEAR% RECOMMENDATIONS activity and is strategically instrumental in facilitating 1,400,000 TONNAGE% The Figure on the left shows that enhanced trade and growth. CONCESSION PERIOD from the time of concession, the performance of ZRL in the tonnage However, the railway systems network in Zambia has been 1,200,000 moved on rail declined drastically operating at a sub optimal level compared to its capacity. 1,000,000 from 1,323,191mt in 2004 to 594,850 metric tonnes in 2012. This was 800,000 highly due to lack of investments in the track rehabilitation and 600,000 infrastructure upgrade by the TONNAGE% concessionaire, resulting in the 400,000 drop-in performance. 892,416 690,793 754,156 829,643 594,850 732,284 959,965 874,422 643,305 702,603 1,323,191 1,133,339 1,148,063 0 863,104 1,323,191 594,850 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Metric tonnes of rail freight moved by Metric tonnes of rail freight moved by YEARS Zambia Railway Limited ZRL in 2004. Zambia Railways Limited in 2012. Source: Ministry of Transport and Communication ,2018 Government has intentions of developing rail spurs in intracity transit systems. As PMRC we recommend that Government should strictly TAZARA PLANNED RAILWAY PROJECTS GOVERNMENT INTERVENTIONS TO INCREASE RAIL FREIGHT utilize Public-Private Partnership (PPP) to access /Zambia Railway Authority (TAZARA) which is co- • The Government's nullification of the concession with private financing given the constrained fiscal owned by Governments of Zambia and Tanzania covers the Railway System of Zambia (RSZ) in 2012, which space. Government needs to further explore other approximately 1,900 km from Kapiri-Mposhi Zambia to Dares- lead to an eighteen percent growth in the traffic of the forms of engaging the private sector through; slam in Tanzania. ZRL between 2012 and 2017. i. Service Contracts Performance of Tazara 2009 to 2017 • In 2012, the Government decided to allocate about 600,000 ii. Infrastructure Construction and KEY USD 120 million into ZRL in order to increase tonnage capacity and enhance the rolling stock. Consequently, Maintenance 500,000 TAZARA tonnage carried was increased to 732,284 tonnes in iii. Equipment Ownership and leasing LINEAR TAZARA 400,000 2013 and closed around the 959,956 tonnes in 2014 after ZRL allocated USD 81.8 million towards railway iv. Management Contracts 300,000 infrastructure and USD 38.2 million towards rolling 265,051 229,647 stock in 2012. 200,000 171,405 The Zambian Government has realized the need for transport • There is need to dis-bundle the rail line 122,473 128,105 132,385 operations, where rail infrastructure

TONNAGE infrastructure development, particularly road and rail that • In October 2018, The Industrial Development 100,000

552,505 development and management are separated 459,009 533,964 would open up export opportunities. Corporation (IDC) Board had approved an investment of $850 million into rail infrastructure and rolling stock from operations by the creation of the Rail - • The --Serenje Railway line was recently for Zambia Railways Limited (ZRL). The investment Development Agency of Zambia. 2009 2010 2011 2012 2013 2014 2015 2016 2017 YEARS approved for construction to complete the link from the was important because it was a wholesome package Source: Ministry of Communications and Transport, 2018 port of to the existing railway lines in Zambia • The Government should continue with the which attends to the entire capacity constraints of and thereby establishing Chipata as a dry port on the maintenance and upgrading of the rail KEY CHALLENGES IN THE RAILWAY SECTOR ZRL. eastern border of the country. infrastructure to reach the desired speed of 80 kilometers per hour for freight trains and • The Zambian Government has committed itself to • TAZARA and ZRL have insufficient locomotives and 120 kilometers per hour for passenger trains. wagons. For instance, by 2014, ZRL had a total locomotive the development of railway sector through proposed $850 fleet holding of 37, out of which 24 were operational construction and development of various railway lines • Zambia should engage in Bilateral/Multilateral and the balance 13 were defective and extensively as indicated in the table below Railway Route management groups with cannibalized (Rail News, 2017). other countries to collaborate on rail use Rail projects earmarked for development MILLION • The average speed of locomotives is about 40km per hour, and infrastructure development to increase invested into rail infrastructure and rolling volumes and ensure suitability of the rail which is too slow in modern business and commerce. stock for Zambia Railways Limited (ZRL). LENGTH sector. NAME OF THE RAIL PROJECT TARGET ACCESS ROUTE • Lack of reliability and has outdated infrastructure (KM) characterized by poor maintenance. • Government needs to put in place regulatory To the Great Lakes 1 Nseluka/Mpulungu rail project 195 bodies to monitor market performance, • Lack of coordination with regional railway companies. Region competition and even safety issues. Currently For instance, there is weak coordination between ZRL, • Government brought into effect the Statutory 2 Livingstone/Kazungula/Sesheke 200 To Walvis Bay in Namibia Instrument to compel transporters of heavy cargo to no regulator is installed in Zambia for the TAZARA, Spoornet and other railway companies in the railway sector except the General inspector region. 3 / Kaoma/ Sesheke 800 To Walvis Bay in Namibia move 30 percent of bulk cargo from road to railway in January 2018. This was done in a bid to optimize of railways, based in the Ministry of Lobito Corridor (Angola/ • Rail shipments has also been criticized for lacking 4 -Solwezi-Jimbe 600 Communication and Transport. DRC) the transport sector and promote the sustainability of proper security. rail subsector. Source: Ministry of Communications and Transport, 2017