RAHCO disbanded as TRL gives way to TRC

04Mar 2018
James Kandoya
Guardian On Sunday
RAHCO disbanded as TRL gives way to TRC

THE government has disbanded the Reli Assets Holding Company (RAHCO) and instead formed the Tanzania Railways Corporation (TRC), handling all railway operations.

The Minister for Works, Transport and Communications, Prof Makame Mbarawa

Last year, the legislature passed the Railway Bill 2017 which proposed the formation of TRC to be responsible for all assets and operations.

Parliament passed it into law on September 13 and it was assented by President John Magufuli on October 8.

The Minister for Works, Transport and Communications, Prof Makame Mbarawa told the press in Dar es Salaam that the move to disband RAHCO aimed at enabling efficiency in service delivery.

He said the first section of the Act gives the responsible minister the mandate to announce the commencement of the corporation through the Government Gazette, noting that it was done on Friday this week.

Prof. Mbarawa said the formal start of application of the Act includes merging all duties that were performed by the former RAHCO and TRL.

“From now all debts and assets will be carried by the new corporation as well as all staff of the former RAHACO and TRL will be shifted to the new corporation," he declared.

Experience had shown that the former TRC did better compared to operations of the two disbanded companies, RAHACO and TRL.

In the same development, President John Magufuli has appointed Prof John Kondoro as TRC Board chairman and Masanja Kadogosa, the TRC executive director.

Kadogosa had been serving as acting RAHCO executive director as well as TRL executive director while Prof Kondoro was board chairman of TRL.

The minister directed the new top office holders to formulate their work schedule and internal regulations in the next two weeks.

The minister also launched the construction of a 2850 metres bridge from Dar es Salaam  station to Ilala station in standard gauge format that will be used by passengers trains.

The bridge will end traffic disturbances at railway crossings, he said, noting that it will be completed by July next year.

For his part, Masanja Kadogosa said objectives underlining the decision to establish RAHCO and TRL in 2007 were not achieved at all.

Merging RAHCO and TRL will increase efficiency in the new corporation since there will be quick decision making and simplified followup, he said.

Decision making in the day to day operations of the new entity shall enable the corporation to cope with changes in the transport sector, he asserted.

Tanzania Railways Limited (TRL) was established on May 25th, 2007 and started operations on October 1st under the ownership of RITES of India and the government,with Rites holding a nominal majority of 51 oer cent shareholding.

Rites then withdrew and full state ownership was restored in July 2011, making it irrelevant for RAHCO to continue holding assets of another state owned entity.