According to The Citizen the government has admitted that poor rail infrastructure is to blame for the inefficiency of Tanzania Railways Limited (TRL).

“Speaking to The Citizen [published in Dar-es-Salaam], at the ministry of finance and economic affairs pavilion on the eve of the 33rd Dar-es-Salaam international trade fair, publicity and regulatory manager with the Consolidated Holding Corporation (CHC) Joseph Mapunda said poor infrastructure of the central railway line has been the reason behind the lack of quick results at TRL [Tanzania Railways Limited].” The paper quoted Mapunda saying that in order for the company to improve transport services along the central railway, the line needed to be renovated. 

”People should understand that TRL is a joint venture company owned by the government and investors, where the government owns 49% and investors 51%”, Mapunda explained, with efficiency dependent upon the condition of the infrastructure. The government owns 100% of the old infrastructure.” On this, he pointed out, the investor is required to provide services.

CHC, the Citizen explains, has been involved in the privatising of loss-making state-owned enterprises since 1992, when the Presidential Parastatal Sector Reform Commission (PSRC) was established. Before the privatisation process started, the paper says, “there were over 400 non-profit companies which depended on subsidies; these were costing the government over $US100 million every year, At least 270 loss-making public companies have been privatised.”

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