Parliament heard today that the Zambia Railways Limited (ZRL) made a loss of over K15 million.
Transport, Works, Supply and Communication Deputy Minister, Panji Kaunda, said ZRL incurred a loss of K15,865,474.
Col Kaunda said the loss was between January and April, this year.
Col. Kaunda, who is nominated Member of Parliament (MP), however, said the firm generated a total revenue of K231,516,000 and a net income of K41,186,000 last year.
The Works Deputy Minister was responding to a question raised by PF Chipili MP, Davies Mwila, who wanted to find out what the financial status of ZRL was as of April, 2014; how much profit the company made in 2013 and what the future plans of the company has in terms of recapitalisation.
He explained that the firm hauled a total of 732, 284 tonnes of freight cargo in 2013.
Col Kaunda said ZRL is on course with the rehabilitation of rolling its stock and railway infrastructure following the US $120 million grant from government.
Col Kaunda bemoaned that 640 defective wagons and 13 defective locomotives have been earmarked for full rehabilitation next year.
He said 500 more wagons and additional ten locomotives have been procured in a move aimed at linking all mines in transporting concentrates, refineries and smelters.
He added that the rail track on the line of rail from Livingstone to Chililabombwe is under rehabilitation by re-sleepering the sections with concrete sleepers, converting the track into a long welded rail, replacing wooden and expired steel sleepers with concrete sleepers as well as ballasting.
He disclosed that ZRL took over the operations of Mulobezi Railway line on January 1, 2014.
This is precisely the point we have been making by doubting the resurrection of Indeco by Sata’s Govt. This is made even more obvious by the lies that have rocked this Zambian Govt.
The point is, in steady of creating a monster (IDECO) that creates jobs only for the relatives of those who hold the power and control the financial machinery of the nation, we should allow and encourage the private sector to create real jobs.
Create an environment where private sector will flourish and create more jobs. The Govt. should only be a referee except in very exceptional cases such as defense, health education, partly transportation and Agriculture.
Govt should find a private partner to operate the ZR, pretty much like they are looking for a strategic partner to revive Zambia Airways.
So the Euro bond pumped into ZRL is part of the loss? What is the use of revamping a project which produces losses as first fruits???
There is never a turn around that occurs in four months anywhere unless you are King Midas
Uwatambile Baskopo that is very wise. Zambians need to realize change takes time, especially businesses of this magnitude.
Yes true, we do not expect a turn around overnight, BUT if a business can register such a loss (K15billion – I like quoting in the old) in the first quarter, then that is very sad because these losses have a bearing on the performance in the coming quarters.
Ba Atanga bunda bwa chiwowo
How can a quarter be 4 months….January to April, poor reporting
Govt shld run businesses, parastatals like zesco need to be regulated but not controlled . Govt can support the establishment of vital industries in agriculture, manufacturing, energy …. stay off media
This company is in dire need of investment and restructuring the $120m is a drop in the ocean for such a rundown railway company operating on a unsafe negligented network and on top of that it needs a seasoned CEO not the PHD cadre who is currently there.
heheheheheheehh!!!!!
Meanwhile abena Kays is just snoring and farting in Nkwazi house!
What do you expect?????????
Surprise surprise!! Very little contribution on economic topics by Zambians! Anyway the article/story is very poorly written/reported. The income statement contains key features namely: Sales revenue (Gross income), cost of Sales, Gross profit, Total Operating expenses = ( sales & marketing +Research and Development costs + General and Admin cost e.g. wages), Income from operations, Other Income, Amortisation ,Taxes, Net Profit(Loss). Net income is income after deduction of interests on lans and taxes. So in the strict use of terms you cannot have a positive net income of 14m and still make a loss! Net income is what shareholders split/share after paying company taxes and interests on loans.
CONTD: This net Income (assuming it is a misuse of the name for Income before taxes, at 41 million is still SUSPECT/wrong because this should be after deducting operating expenses and amortisation. Does this mean ZRL is paying (15+ 41 million= 56 million in taxes)?? LT Please give an accountant some of these articles before publishing! @ Kelvin Malunga: I do NOT support the resurrection of INDECO. ZRL is different from Indeco, ZRL is infrastructure like roads, bridges and airports. Investors were simply running it down and govt had to step in (make the necessary investments/infrastructure upgrade).
gross income K231,516,000 ukwisashala muli K41,186,000? nga K190,330,000 yaile kwisa? Net income teti ibe 17% ya gross ninshi ci company caliba wasteful. calibola! pantu iyi ni wastefulness.
INDECO dreamers. Ha ha ha aaaa..
Embark on the national airline. You will see red.
This is just poor comprehension of the English language and there is no excuse for it: “Col Kaunda bemoaned that 640 defective wagons and 13 defective locomotives have been earmarked for full rehabilitation next year.” I am sure the deputy minister is not bemoaning the fact that the defective wagons and locomotives are ear-marked for rehabilitation! Poor reporting and even poorer editing Lusaka Times!!
Really! Then at what point did ZR come a profit making company? From 1967 when it was established and especially from the 1980s, train derailments have been the order of the day. The major causes of these derailments have been rotten track, rolling stock and compromised safety standards. How can the company make profit against this backload of problems that need money to cleared and their persistence is because the company has no sufficient resources in-terms of HR, materials, cash etc. Under RSZ this company was reduced to an entity under ITC connect to life line of oxygen. Today the company is making profits and losses. In Zambian context, the railway company has never been a profit making company and nothing has changed even today. If anything. very far from it. Very few understand..
this. That is why the debate about it in parliament draws literally nothing because nobody seems to have interest or understand it. Increasingly, the kind of managers and directors the man surrounds himself with are those with little analytical ability, people with physical mentality who can not sit on the table and brainstorm the issue fully applying strategic management approaches in order to be come competitive. You see, principally, management is simply working through others. But it depends on the quality of these others and that is why Human resource planning and management comes in. The CEO is surrounded by certificate of attendance and three week courses kind of directors. What do you expect. It means CEO is also questionable. HR is not up to date too. The chief there is also…..
This is trading profit and loss account nothing to do with balance sheet right? Meaning they spent more money on overheads thats emoluments and running costs than they made,simple fire the inept ceo.