TANZANIA and Zambia have reached a consensus on proposed amendment on the law governing operation of jointly owned railway authority, Tazara to make it run commercially. The review of the law will allow the owners to invite private investors in the running of their joint railway company.
The Tanzania-Zambia Railway Authority (TAZARA) Board of Directors who met in Lusaka, Zambia said in a statement the proposal of amending the Act of 1995 awaits the approval of the two partner states cabinets before it is presented to Parliament.
“Attorneys General of the two countries had reached consensus on the proposed amendments…and that the two governments were in the process of seeking approval for the amendments from their respective cabinets before presenting the bills to the two parliaments,” the statement said.
The board, that met in Lusaka, Zambia, was also concerned with low tonnage of cargo hauled in the twelve months to June saying effort should be made to achieve the projected target. “In this regard the Board directed Management to enhance efforts aimed at improving performance further in order to attain sustainability, going forward,” the statement said.
The 1,860 kilometres long Uhuru Railway linking Dar port with Kapiri Mposhi in central Zambia recorded annual freight haulage of 220,000mt which was “nevertheless very low and far below the desired break-even point of 600,000mt,” the statement showed.
However, the overall performance, the TAZARA had continued to record successful improvements in almost all key performance indicators in its financial year ending June. On Public Private Partnership (PPP) the Board recognised the efforts made to introduce the programme but directed that the PPP units of both countries be consulted for further guidance.
TAZARA Board comprised of the Permanent Secretaries responsible for Transport in Tanzania and Zambia, as Chairperson and Co-Chairperson, respectively, together with four other members from both countries.