Communique by the TAZARA Board of Directors

We, the Tanzania-Zambia Railway Authority (TAZARA) Board of Directors, comprising the Permanent Secretaries responsible for Transport, in Tanzania and Zambia, as Chairperson and Co-Chairperson, respectively, together with three other Board members from both countries, meeting in Lusaka, Zambia, this 29th Day of July 2015, do hereby declare as follows.

The Board:

Operational Performance
Noted that the freight traffic performance of the Authority had started showing signs of improvement and commended Management for raising the annual performance from 87,000 metric tons of freight in the Financial Year 2014/2015 to 130,000 metric tons in the Financial Year 2015/2016, which translated into revenues of USD13.50 million for the year ending 30th June 2016.

Further noted that there were improvements in both the inter-state and commuter passenger train operations, which were now not only running on time but also operating cost-effectively in some units. In this regard, while commended for the improvements so far, the Management was urged not to relent but to go further and apply more efforts to eliminate all losses in all units and aim to attain the break-even point in all operations.

In addition, the Board noted the concerns expressed by the Authority’s customers and other stakeholders in the transport sector in Zambia and Tanzania, regarding the impact of the introduction of Value-Added Tax on services for goods transiting through the Port of Dar es Salaam and resolved to request the Dar es Salaam Corridor Committee to quickly undertake an independent study and advise on the competitiveness of the Dar es Salaam Port in light of this fiscal policy relative to other regional ports and the potential impact on TAZARA thereof.

Corporate Budget for 2016/2017

Considered the proposed Authority’s corporate budget for the Financial Year 2016/2017 and, taking into account the performance headways made so far by the new Management, approved a projected 381,000 metric tons of freight and 2,280,000 (interstate and commuter) passengers to be transported in the Financial Year 2016/2017, which will account for total revenue of USD44.10 million. The Board further urged Management to actively pursue non-rail business activities to supplement its revenues.

Public-Private Partnerships

Directed Management to be more aggressive towards creating and accommodating progressive proposals for Public-Private Partnerships and, in this regard, urged Management to expedite the conclusion of the proposed partnership with the Copperbelt University at the TAZARA Training Centre in Mpika as an area for enriching capacity building for the Authority.

Decentralisation

Deferred decentralisation of the Authority, pending review of the TAZARA Act and other policy and administrative matters, including institutional restructuring, cleaning of the Authority’s balance sheet and recapitalisation.

Review of the TAZARA Act

Noted that the review of the TAZARA Act of 1995, which aims to make the Authority more business-oriented, was still in progress in both countries.

Retired Employees on Contracts

Directed Management to discontinue the renewal of contracts for retired employees and ensure that succession plans were put in place for younger employees to take over the positions left by exiting staff.

THE TAZARA BOARD OF DIRECTORS

  •  
  •  
  •  
  •  
  •