LUSAKA, Wednesday, September 5, 2012 – His Excellency Mr. Michael Chilufya Sata, President of the Republic of Zambia, has instructed the new Minister of Justice Hon. Wynter Kabimba to examine the Freight and Passenger Concession Agreement between the Government and Zambia Railways Limited (ZRL), Railway Systems of Zambia (RSZ) and New Limpopo Bridge Projects Investment Private Limited.
In March 2000, the MMD Government decided to concession the freight and passenger services of Zambia Railways to the private sector. After a process of competitive bidding, the then Zambia Privatization Agency (ZPA) awarded the concession to Railway Systems of Zambia.
And on February 14, 2003, the MMD Government signed a Freight Concession Agreement with RSZ and on August 18, 2003 signed the Passenger Concession Agreement. RSZ took over operations of Zambia Railways Limited on December 3, 2003. The concession covered the whole inter-mine railway network on the Copperbelt as well as the long haul railway network from the Copperbelt to Livingstone.
The Head of State has emphasized the need for Government to look into the Concession Agreement with RSZ in order to preserve the national railway infrastructure from further deterioration given that RSZ has failed to invest in the railway assets and improve operations, and to allow Government to reposition itself in improving the railway sector which is critical to the country’s economic development.
SPECIAL ASSISTANT TO THE PRESIDENT
PRESS AND PUBLIC RELATIONS