Tanzania-Zambia Railway Authority Performance For The First Half Of The Financial Year 2019/20, Ending 31st December 2019

Tanzania-Zambia Railway Authority Performance For The First Half Of The Financial Year 2019/20, Ending 31st December 2019

At the recent TAZARA Board Meeting, held on the 13th of January, attended by, (TAZARA) Board of Directors, comprising the Permanent Secretaries responsible for Transport in the United Republic of Tanzania and the Republic of Zambia, as Chairperson and Co-Chairperson, respectively, together with four other Board members from both countries.

A negative trend was noticed in some of the Key Performance Indicators recorded by the Authority in the first half of the Financial Year 2019/2020 ending 31 December 2019.

In view of the foregoing, the Board has directed the Management team to aggressively seek additional freight traffic in order to capture more business, take steps to improve safety of operations, increase the line capacity so as to accommodate more private operators, strive to lower operating costs further and engage the Tanzania Port Authority for joint total route costing so that rates offered to customers can be reduced.

External Audit Report

External Auditors, Demus Associates of Tanzania, noted their findings for the Financial Year 2018/2019 ended 30 June 2019, where it was observed that progressive improvements had been recorded by the Authority in the last 5 years leading up to the Financial Year 2018/2019, particularly in terms of income generated, annual traffic volumes as well as the reduction of expenditure due to effective cost controls and the overall decrease in losses.

The Board commended the Management for the noteworthy improvements in the Financial Report and urged that more efforts be made to turn around the performance of the Authority in order to permanently eliminate the loss-making and start declaring dividends to the two shareholding Governments. The Board has expressed gratitude for the unqualified Audit opinion, which has now been recorded for the fourth consecutive year.

Engagement Of Private Operators

The Board noted the positive performance recorded so far by the private operator admitted to run on TAZARA through Open Access and has urged Management to speed up the process of engaging additional private operators under the Open Access model so that the utilisation of the TAZARA infrastructure is optimised.

Bankable Business Plan

The Board noted the progress made by Management towards preparing a Bankable Business Plan as directed by the TAZARA Council of Ministers at the last meeting in October 2019 for purposes of funding by the shareholders as well as possible investor financing and urged the Management to conclude the exercise expeditiously.

Permanent Secretaries responsible for Transport:

  • Dr Leornard Chamuriho, Board Chairperson and Permanent Secretary, Ministry of Works, Transport and Communications - Tanzania
  • Eng. Misheck Lungu, Board Co-Chairperson and Permanent Secretary, Ministry of Transport and Communications - Zambia

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