Zambia’s railway sector stands at a pivotal moment, facing urgent modernization to support economic growth, enhance efficiency, and strengthen the country’s position as a regional transport hub. Cornwell Muleya, CEO of Zambia’s Industrial Development Corporation (IDC), has underscored the pressing need for a comprehensive revamp of the country’s rail infrastructure to reduce transportation costs, boost industrial productivity, and align with regional advancements in railway technology.
The Urgent Call for Railway Modernization
Speaking before the Parliamentary Committee on Transport, Works, and Supply, chaired by Hon. Joel Chibuye, Mr. Muleya emphasized the role of efficient rail transport in driving Zambia’s economic progress. However, the current railway system, managed by Zambia Railways Limited (ZRL), a wholly owned subsidiary of the IDC, is struggling under the weight of deteriorating tracks, outdated rolling stock, and slow transit speeds. These inefficiencies have resulted in high logistics costs, making rail transport less competitive compared to road alternatives, ultimately hampering key industries such as mining, agriculture, and manufacturing.
A Vision for Standard Gauge Railway (SGR) Integration
To address these systemic challenges, Mr. Muleya proposed a full-scale rehabilitation of ZRL with a transition to Standard Gauge Railway (SGR) standards, aligning Zambia’s network with regional leaders such as South Africa, Kenya, and Tanzania. Key modernization initiatives include:
“With neighboring nations making significant strides in railway modernization, Zambia must act swiftly to remain competitive in the regional transport landscape,” Mr. Muleya stated.
Dual Rail Lines and High-Speed Trains: A Game-Changer
As part of the long-term vision, Mr. Muleya advocated for a dual rail system—rehabilitating existing tracks while simultaneously constructing a high-speed railway line. He highlighted Tanzania’s recent success in launching its 1,800 km electrified SGR, capable of speeds up to 160 km/h, as a benchmark for Zambia’s future rail development.
Sustainable Funding Strategies for Railway Transformation
Recognizing the substantial financial commitment required for these reforms, Mr. Muleya proposed the creation of a dedicated Railway Fund to ensure sustainable investment in infrastructure development. Potential funding sources include:
- A 1% Railway Levy on Imports: Generating a steady revenue stream for rail maintenance and expansion.
- Fuel Levy Refund Allocations: Redirecting a portion of fuel levies to support railway infrastructure.
- Direct Government Budget Allocations: Ensuring consistent financial backing for long-term railway development.
“Establishing a dedicated Railway Fund will be crucial in securing the necessary investments for long-term sustainability and operational efficiency,” Mr. Muleya emphasized.
The Economic Impact of Railway Modernization
- Lowered Transportation Costs: More affordable logistics solutions for businesses and industries.
- Boosted Regional Trade: Enhanced connectivity with neighboring countries, facilitating smoother cross-border trade.
- Improved Industrial Efficiency: Faster and more reliable transport for the mining, agriculture, and manufacturing sectors.
- Strengthened Position as a Transport Hub: Making Zambia a preferred gateway for cargo movement within Southern Africa.
Opportunities for Travel Agents and Investors
For African travel agents, Zambia’s railway modernization presents new opportunities in rail tourism, particularly with the potential introduction of high-speed passenger trains. Scenic rail journeys and luxury train experiences could attract domestic and international tourists, stimulating the travel and hospitality sectors.
A Path to Economic Transformation
With a strategic focus on integrating Standard Gauge Railway technology, expanding capacity through dual rail lines, and securing sustainable funding, Zambia is taking decisive steps toward revitalizing its railway sector. If successfully implemented, these reforms could transform Zambia Railways Limited into a leading transport provider, driving economic growth and reinforcing Zambia’s role as a key player in Africa’s regional trade network.
As the nation looks to emulate the railway success stories of Tanzania and other regional counterparts, this railway overhaul could serve as a cornerstone of Zambia’s economic transformation, unlocking new opportunities for trade, investment, and sustainable development.