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Final deal on TRC should come clean
2007-05-19 08:57:58
By Editor
The process leading to the privatisation of the giant state-owned Tanzania Railways Corporation through what is technically known as concessioning has been slow and expensive.
The intricate exercise has dragged on for almost nine years, with hardly any official confirmation of the fact that the funding involved was in the form of a World Bank loan to be repaid by Tanzanian taxpayers.
Through its privatising agency, the presidential Public Sector Reform Commission, the government has concessioned TRC’s operations to RITES of India for a period of 25 years from August 2006.
Reports say delays in deciding the corporation`s fate were linked to the consequences experienced during a previous exercise of similar nature involving Dar es Salaam water and sewerage facilities.
Exercising such caution was of importance to ensure that the nation did not lose by entrusting private hands with the running of institutions as key as TRC surely is.
This is particularly considering that the government has been coughing up a whopping 60m/- daily to subsidise the limping corporation`s operations.
Canada, the UK and Germany used to carry this subsidy burden but all stepped aside in 2000 to pave the way for the privatisation exercise.
It is hard to say whether having the government continue to cushion TRC would be one of the best ways of spending scarce public financial and other resources.
But old age and lack of proper and consistent maintenance have been making damage to the single-gauge track railway network grow by the day, while the line from Ruvu to Arusha has long become a white elephant.
It was earlier estimated that a staggering 70bn/- was needed urgently to revamp TRC to keep accidents down and ensure more timely transportation of passengers and delivery of goods. The amount may have since risen sharply.
TRC’s network covers a total length of 2,700 km but it needs overhauling locomotives, tracks and all to improve safety standards and generally enhance efficiency.
June 2002 witnessed a grisly accident in which 288 passengers died when the TRC train they were travelling in suddenly sped backwards at full speed and rammed into a cargo train in Dodoma Region.
The tragedy, like many other similar though less ghastly previous incidents, was largely blamed on mechanical problems.
TRC has been experiencing an average of 40 broken railway sections and 100 locomotive failures a month, causing costly disruptions in services.
Delays in privatising TRC are also said to hinder the exploitation of the recently discovered nickel deposits in Kigoma Region that have attracted USD 500m in investments.
Malaysian investors have also shown interest in putting 700 hectares under palm trees in the region, which could lead to large-scale production of palm oil.
Meanwhile, the corporation`s Central line traverses vast tracts of virgin land with massive agricultural potential and is a vital supply link for landlocked Burundi, Rwanda, Uganda and Zaire.
Given all these facts, we subscribe to the belief that wisely fast-tracking the corporation`s concessioning is a bold decision whose time has come.
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