THIS week, I am discussing Zambia and one of its closest neighbours Tanzania after leaders from the two countries met to revisit the topic of bilateral relations.

. Kikwete

Tanzanian President Jakaya Kikwete was in Zambia a fortnight ago at the invitation of his counterpart Edgar Lungu, to discuss the existing bond that has given impetus to the joint projects that the two countries have embarked on to promote social economic growth.
These are particularly the Tanzania-Zambia Railways (TAZARA) and the Tanzania-Zambia Mafuta oil pipeline (TAZAMA), which have both proved to be of mutual benefit to the two countries.
As sister countries with a shared heritage and culture; Zambia and Tanzania have similar political, economic and social aspirations, as evidenced by the long standing partnership under TAZARA and TAZAMA.
TAZARA and TAZAMA do not only strengthen and deepen relations between the two countries, but are of mutual benefit to in areas of trade and investment, job creation, poverty alleviation and economic growth.
The meeting between the two Heads of State witnessed by senior Government officials from both countries was aimed at discussing how the two companies could remain viable.
TAZARA, a firm in which both countries hold a 50 per cent stake, is probably going through its roughest patch now since inception in 1976 to operate a railroad between Dar-es-Salaam and Kapiri Mposhi.
Unionised workers at firm have constantly complained of unpaid wages for several months because the company can not meet operational costs despite the joint-shareholders pumping finances to the tune of US$80 million last year.
TAZARA has been operating at a loss for more than ten years and the Authority has been unable to meet most costs such as expenses for running spares for locomotives and rolling stock, fuel and salaries for employees.
The performance of the firm fell to record low levels of less than 300, 000 tonnes of freight per year in the recent past from the peak of 1.2 million tonnes per year in the late 1980’s.
It is clear that something needs to be done at TAZARA but this involves the input of management, the shareholders and employees to bring back the railway firm to its feet.
The two Governments must ensure TAZARA has a comprehensive and bankable business plan which would clearly map the future of the company and ensure that it becomes self-sustaining.
This will be a key to ensuring that the funds being pumped into the firm by the shareholders are well utilised.
The prospect of incorporating other railway operators such as Zambia Railways could be allowed to run both passenger and freight services to Dar es Salaam and that TAZARA should equally be allowed to go from Dar es Salaam to any part of Zambia.
On the other hand, TAZAMA, in which Zambia has 66.7 per cent shares and Tanzania 33.3 per cent shares, has been operating financially viable despite hiccups owing to dilapidated infrastructure.
The TAZAMA pipeline is a 1,710-kilometre long crude oil conduit from Dar-es-Salaam to the Indeni refinery in Ndola.
Both countries have now agreed on the need to construct an additional pipeline that will be used to transport refined fuel between the two countries.
The rehabilitation of the existing pipeline will also be explored after a feasibility study to conclude modalities such as the cost structure and project implementation time frame.
The TAZAMA pipeline requires certain segments to be rehabilitated to avert leakages and this should be done expeditiously.
The setting up of an additional pipeline is intended to carter for refined crude oil that will feed directly into selected fuel storage depots without going to Indeni for refining.
The move will contribute to sustainable fuel supply as Indeni required modification of various components to refine various kinds of crude oil and operate at full capacity.
As these were some of the resolutions agreed upon by the two Heads of State, Zambia and Tanzania must ensure the Joint Permanent Commission of Cooperation (JPC) is revitalised to create a platform in which issues of mutual benefit to the two countries would be dealt with.
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