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The impact of Covid-19 on ZRL and the survival measures put in place by ZRL to continue projects and encourage intra-
regional trade
A webinar presentation by Mr. Christopher C. Musonda(ZRL Managing Director)
6th October 2020
ZAMBIA RAILWAYS LIMITED
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TABLE OF CONTENT1. Brief about Zambia Railways Limited (ZRL)
2. ZRL Regional and Port linkages
3. Negative impact of COVID – 19 on ZRL
4. Projects progress update amidst COVID – 19
5. Zambia Railways Investment Needs
6. Measures put in place by ZRL
7. Successes recorded amidst COVID - 19
8. Conclusion
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Brief about ZRL ZRL is a parastatal railway organization under the Industrial Development Corporation (IDC),
mandated to operate both freight and passenger trains.
The company is headquartered in Kabwe, Central Province - Zambia. The main workshops andthe Central Train Control (CTC) are also in Kabwe.
Strategic Vision: To be the preferred regional railway transport and logistics provider
Strategic Mission: To provide sustainable and competitive rail transport and logistics solutions to
customers and deliver shareholder value
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ZRL Regional and Port linkages Zambia is linked to almost all the trade
corridors.
Land linked (road and rail) to eight neighborsand beyond the country’s borders. We are ahub.
The main trade corridors for Zambia by railinclude:The North-South CorridorThe Dar-es-Salaam CorridorThe Nacala CorridorThe Beira CorridorComing up is the Kazungula corridor
Shortest route from Ndola is Dar-es-Salaam –1,976km
The longest route is Ndola-Durban – 2,951km.
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Negative impact of COVID – 19 on ZRL
COVID – 19 has posed a great threat to the lives ofpeople across the globe.
The pandemic has also threatened operations andsurvival of businesses.
The major impact of COVID – 19 on ZRL has been ontrain operations, especially on over border traffic whichmakes up about 66% of total traffic, by tonnage.
In this regard, Business decisions and behavior outsideZambia have a huge impact on ZRL than the localbusiness environment.
The major impact of COVID – 19 on ZRL is highlightedbelow:
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Negative impact of COVID – 19 on ZRLo Classification of Copper, Cobalt products, and Sulphur as non – essential commodities during
the lockdown in South Africa; this negatively affected Copper production, and inter-regionaltrade. In return, there was little to move and earn for the railways.
o Reduced Loading of wheat in South Africa; this reduced number of trains from four (4) perweek to one train per week.
o Reduction in Coal loading in Zimbabwe due to restrictions at loading sites; this adverselyaffected production of Copper and Cement in Zambia, hence low traffic levels for trainoperations.
o Reduction in the level of ships docking at the Port of Dar-Es-Salaam mainly because ofreduced activities at the Port as well as loading of ships from the originating depots.
o Locally, ZRL suspended all passenger trains effective 6th April 2020; 100% loss of revenue frompassenger train services
o In April, ZRL closed Kafue railway station, after the Ministry of Health declared Kafue townas an epicenter.
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Projects progress update amidst COVID – 19 a. Recapitalization of ZRL (about USD922 million investment requirement)
o Management has continued to engage potential financiers via webinar applications such asMicrosoft Teams and Zoom. (see on the next page the investment needs for ZRL)
b. Livingstone – Kazungula – Mosetse (about 440km).
o This is a joint railway project between ZRL and Botswana Railways.
o The project has reached a stage to engage a consultant to conduct a Bankable Feasibility Study.
c. Livingstone - Kazungula – Shesheke
o A pre-feasibility study has been done.
d. Petauke to Beira (960km) - to connect to Mozambique
e. Kafue to Lions den
f. Nseluka to Mpulungu
The project progress rate has been low, on all the projects due to COVID – 19.
Independent feasibility studies
in place
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Zambia Railways Investment Needs
Qty
Estimated
Cost (USD) Qty
Estimated
Cost (USD) Qty
Estimated
Cost (USD) Qty
Estimated
Cost (USD)
1 Rolling Stock Activities:
1.1 Purchase of Wagons 700 49,000,000 1,100 110,000,000 1,300 130,000,000 3,100 289,000,000
1.2 Purchase of New Locomotives 4 20,000,000 10 50,000,000 26 130,000,000 40 200,000,000
1.3 Periodical Overhaual of Existing 7 8,400,000 - - - - 7 8,400,000
1.4 Passenger Coaches - - 40 23,000,000 - - 40 23,000,000
1.5 Diesel Multi Units - - 4 32,000,000 - - 4 32,000,000
1.6 Subtotal Rolling Stock Activities 77,400,000 215,000,000 260,000,000 552,400,000
2 Workshop Equipment:
2.1 Wheel Re-Profiling Lathe 1 3,000,000 - - - - 1 3,000,000
2.2 Other Workshop Equipment - - - - 1 15,000,000 1 15,000,000
2.3 Subtotal Workshop Equipment 3,000,000 - 15,000,000 18,000,000
3 Rail Infrastructure Activities:
3.1 Concrete Sleepers 170,000 8,500,000 100,000 5,000,000 250,000 12,500,000 520,000 26,000,000
3.2 Ballast (Cubic Meters) 460,000m3 13,805,500 - - 140,000 4,200,000 600,000m3 18,005,500
3.3 91lb Rails (Km) 190Km 15,795,000 790Km 106,600,000 100Km 17,000,000 1,080 Km 139,395,000
3.5 Bridges and Station Buildings Various 2,300,000 - - Various 76,630,000 Various 78,930,000
3.6 Procurement of Inspection Trolleys - - 6 345,000 - - 6 345,000
3.7 Rail Track Support Equipment - - - - Various 12,000,000 Various 12,000,000
3.8 Rail Connectivity Various 10,000,000 Various 19,000,000 Various 27,000,000 56,000,000
3.9 Subtotal Infrastructure Activities 50,400,500 130,945,000 149,330,000 330,675,500
4 Signalling System & Others
4.1 Signalling/Telecoms System 1 10,000,000 - - - - 1 10,000,000
4.2 Working Capital 10,000,000 10,000,000
4.3 Implementation of PPP Projects 7 1,200,000 - - - - 7 1,200,000
4.4 Subtotal Signalling & Others 21,200,000 - 21,200,000
5 Grand Total 152,000,500 345,945,000 424,330,000 922,275,500
Grand Total
S/No. Particulars
Survival/Short Term (2018) Medium Term (2019-2020) Long Term (2021-2022)
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Measures put in place by ZRL• ZRL engaged Southern African Railway Association (SARA) and the respective Railway
Administrations, to negotiate for the inclusion of Sulphur, Cobalt products, Coal, Fuel,Containers, Chemicals and Copper on the list of essential commodities.
• ZRL delved into usage of smart applications such as ZOOM and Microsoft Teams to holdmeetings internally and externally. This has been helpful in handling the existing projects.
• Disinfection of locomotive cabins at each crewing depot across the ZRL system.
• Provision of face masks to employees
• Creation of work schedules; about 65% of ZRL staff working from home on a daily basis
• Intensify movement of local commodities such as Sugar and Coal
• Exploiting opportunities that arose, such as deviation of cargo from the North South Corridorto Dar es Salaam.
• Suspension of non – essential travel and physical meetings.
• Following health guidelines
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Successes recorded amidst COVID - 19 Through out the COVID – 19 period, ZRL has managed to pay salaries, with no Government
intervention
To date, no employee has been confirmed positive of COVID - 19
Made administration savings, and a bit of operational savings. This was largely due to the
work from home rotational schedules.
Performed above all projected scenarios for traffic available under COVID – 19; effective June
2020.
Foreign Exchange gains, due to the depreciation of the local currency. Most of the ZRL
customers pay in dollars.
Commodities that were classified as non-essential have been listed for movement.
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Conclusion
Zambia has a strategic location for trade within Africa and the rest of the World
In a case of lockdown by the neighboring countries, Zambia is adversely affected
The railway companies in the region have a huge role to play in such a period to ensure timely
and safe delivery of the commodities, in bulky to meet demand
There is need to promote intra-regional trade amidst COVID – 19 due to the economic inter –
dependence, for production, trade and consumption
Railways Operators must strengthen their relationship with Port Operators
Africa must unite!!!
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Thank you for your attention!!