Tanzania (Xinhua) -- The
Tanzania Zambia Railway Authority (TAZARA) said on
Tuesday it’s been seeking 450 million U.S. dollars
as an additional re-capitalization boost.
Bruno Ching’andu, TAZARA managing director made the
request for the additional re-capitalization during
the launch of its freight management system plus two
locomotives and 10 wagons—all renovated—in
Tanzania’s commercial capital Dar es Salaam.
He said the new funds would enable the company,
which is jointly owned by the governments of
Tanzania and Zambia, to raise its cargo
transportation volumes from 250,000 to 600,000
tonnes per year, and thus reach the break-even point
in its operations.
Makame Mbarawa, Tanzania’s Minister for Works,
Transport and Communications, retorted that before
requesting further funding, TAZARA should focus on
cutting costs in a top-down manner.
The minister said the starting point should be
the company’s "bloated management" that he claimed
is consuming a chunk of its finances and should be
slashed from 15 to just eight officials.
"Our two governments are finalizing the rules
that will facilitate the trimming of the TAZARA top
management as a way of bringing about efficiency and
productivity," Mbarawa said.
The trimming process should also go down to
TAZARA’s regional offices in Tanzania, with only
workers with real value and potential to be spared,
He insisted that because the government’s target
is to reduce unnecessary running costs within the
company, there is no way out regarding the workforce
"The way TAZARA operated in previous years is not
the same as it is operating now... necessary
measures should be taken to revamp it," Mbarawa
said, adding that it would be better to invest in
more on-the-ground manpower than keep spending money
on suit-and-tie officials who have little practical
He commended the company’s decision to conduct
the renovations using its internal revenue sources,
and added that the Tanzania government is "planning
to procure 40 traction motors to be fixed in
locomotives to transport more cargo."