HARARE, Oct 6 – Chinese metals group Tsingshan Holding Group has expanded its logistics partnership with Zimbabwe’s National Railways of Zimbabwe (NRZ) to increase the movement of coal and steel products by rail, supporting operations at its $1 billion Dinson Steel plant.
Under the agreement, Dinson Steel Company will transport approximately 1.1 million metric tons of coal from Hwange to its steelmaking operations, covering a distance of about 600 kilometres.
The partnership will also facilitate the movement of around 600,000 tons of steel products from the Dinson plant to markets across Zimbabwe and the wider region, according to NRZ.
The logistics arrangement brings together Tsingshan’s rail subsidiary, Grand Railway Solutions, and the state-owned rail operator. Grand Railway Solutions will provide locomotives, wagons and fuel, while NRZ will contribute railway infrastructure and train crews.
The agreement includes an $27 million upgrade of the 80-kilometre railway line between Gweru and Mvuma, followed by the construction of a further 50-kilometre track connecting Mvuma to the Dinson steel plant.
The new connection will be developed under a build-operate-transfer model. Grand Railway Solutions will finance construction, subsequently transfer the infrastructure to NRZ and recover its investment through offsets.
The arrangement is intended to expand NRZ’s annual freight volumes while shifting a substantial portion of coal transportation from road to rail.
“This deal is set to significantly increase annual tonnage for NRZ, while at the same time transferring the bulk of coal traffic from Hwange from road to rail,” NRZ said.
The partnership comes as NRZ seeks to rebuild freight volumes after years of underinvestment weakened its rolling stock and infrastructure.
NRZ freight volumes have fallen sharply from a peak of approximately 12 million tons in the 1990s to around 2 million tons in 2025, increasing the importance of partnerships with private logistics operators and major commodity producers.
Dinson Steel, whose $1 billion steel plant in central Zimbabwe began production in 2024, is becoming an important source of industrial freight demand for the rail network.
The expanded rail arrangement could reduce reliance on road transportation for bulk commodities while improving the connection between Zimbabwe’s coal-producing areas, steel production facilities and regional markets.
For NRZ, securing large-volume industrial customers provides a pathway to rebuild freight throughput and support investment in railway infrastructure without relying solely on government funding.
