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IDC CALLS FOR URGENT RAILWAY SECTOR REFORMS

Industrial Development Corporation (IDC) CEO Mr. Cornwell Muleya has called for an urgent overhaul of Zambia’s railway sector to enhance economic development.

He made this appeal while addressing the Parliamentary Committee on Transport, Works, and Supply during a session chaired by Roan Member of Parliament, Hon. Joel Chibuye, on behalf of substantive Chair, Hon. Mubika Mubika, MP for Shangombo.

In attendance were Kanchibiya MP Hon. Sunday Chanda, Chifubu MP Hon. Lloyd Lubozha, and Kwacha MP Hon. Charles Abel Mulenga.

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Mr. Muleya emphasized that the railway sector is crucial for economic growth due to its potential to lower transportation costs, thereby positively impacting various industries. However, he noted that Zambia’s railway infrastructure is in dire need of revitalization, citing deteriorating railway tracks, inadequate maintenance, and an aging fleet as key challenges leading to slow transit speeds and inefficiencies.

To address these concerns, Mr. Muleya recommended a full-scale rehabilitation of IDC’s wholly-owned subsidiary Zambia Railways Limited (ZRL), covering rolling stock, railway tracks, associated infrastructure, as well as signalling and telecommunication systems. He proposed the urgent modernization of the rail network to Standard Gauge Railway (SGR) standards, in line with regional advancements in countries such as South Africa, Tanzania, and Kenya.

“As a matter of urgency, we need to renew the rail line to Standard Gauge Railway (SGR) state to match the developments in other countries like South Africa, Tanzania, and Kenya,” Mr. Muleya said.

Additionally, he advocated for the construction of a dual rail line consisting of rehabilitating the existing track while building a parallel line, to improve capacity and efficiency. Highlighting Tanzania’s recent milestone in unveiling its 1,800km electrified SGR capable of speeds of up to 160 km/h, Mr. Muleya underscored Zambia Railways Limited’s aspiration for high-speed passenger trains under full rehabilitation.

To finance these ambitious reforms, Mr. Muleya proposed the establishment of a dedicated Railway Fund. He suggested potential funding sources, including a 1% railway levy on imports, fuel levy refunds, and budgetary allocations.

“Sufficient funding is required to support infrastructure development, maintain rolling stock to meet high standards, and operate efficiently. Therefore, Government support through the establishment of a Railway Fund is critical,” he said.

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