Tanzanian parliament on Wednesday approved the Railways Bill 2017 designed to reverse ownership of the east African nation’s railway company from a joint venture with private investors to the state.
The proposed new law will disband ownership of the railway firm from joint venture-owned Tanzania Railway Limited (TRL) to the Tanzania Railway Corporation (TRC), the name it carried before it was privatized.
According to the bill, the new TRC will merge TRL and Reli Assets Holding Company (RAHCO). RAHCO was responsible for the railway infrastructure development while TRL dealt with operations of trains.
In 2007 RITES Ltd of India won a contract from Tanzania’s Parastatal Sector Reform Commission (PSRC) to operate passenger and freight trains on a concession basis for 25 years. The concession agreement was signed on September 3, 2007, and it became operational on October 1, 2007.
The railway was run as Tanzania Railway Ltd, with the government of Tanzania owning a 49 per cent stake.
After privatization, the railway line was faced with several problems, including worn-out coaches and locomotive engines, and strikes by workers, crippling rail services.
Mbarawa Makame, the east African nation’s Minister for Works, Transport and Communication, said the new railway corporation will be responsible for handling all rail matters, including transportation services, developing, promoting and managing railway infrastructure assets in the country.
In his statement to parliament, Makame said the bill will replace the current Railway Act No.4 of 2002.
“All the contracts and agreements, including debts, entered by TRL and RAHCO will be accumulated into the new public corporation,” said Makame.
Debating the Bill, a number of MPs called on the government to address various issues that led to failure of the performance of the railway industry in the country.
Hussein Bashe, Nzega MP, said there was need for the government to ensure the new entity should be left free to carry out services so that it can be competent enough to reach the intended goal of profit making. Enditem
Source: Xinhua/NewsGhana.com.gh
