Tanzania Railways Limited (TRL) was established in Tanzania in 2007, under Companies Act No. 12 of 2002, as a private company jointly owned by the Government of Tanzania (GOT) (49% shares) and RITES of India (51% shares). Before establishment of TRL, the central railway line was run by the Government’s owned Tanzania Railways Corporation (TRC) since 1977.
The establishment of TRL was a result of the Government policy to accelerate the country’s economic development by privatising the operations of, among other public owned companies, the central railway line. The specific main objective for TRL was to reverse the serious and continous decline in not only movement of freight and passengers, but also workers morale due to uncertainity of their future. Furthermore, improvement of the central railway line would enable Tanzania optimise benefits from its geographical location as a maritime country; by generating more revenue from transit traffic of exports and imports of the neighbouring landlocked countries. Management of the railway operations under TRL was handed over to RITES of India from 1st October, 2007.
After taking over, RITES LTD adopted a ten year (2007-2017) business plan based on the plan they had submitted during bidding time in year 2002. The 2007 plan envisaged increasing freight from 0.42 million tonnes in the period between October-December, 2007 to 3.14 million tonnes in 2017. However, contrary to this projection, traffic continued to drop. Consequently, the RITES lead TRL management revised its business plan in June, 2009; with projected 2.0 million tonnes to be moved by 2017, down from the earlier projection of 3.14 million tonnes. However, as was the case of implementation of the ealier plan, likewise freight traffic continued to drop from 577,581 tonnes in year 2007 to 267,008 tonnes in year 2011. This trend was not acceptable to the Government of Tanzania, which decided to buy the RITES LTD 51% shares. The deal was completed and the Government took over TRL from July, 2011.
In January 2013 the Government appointed a Board of Directors with a directive to revive TRL. The Board then embarked on preparing a revival strategy and business plan, which has culminated in the TRL Transformation Business Plan presented herein. The Plan is in line with the Government’s Big Results Now (BRN) programme, which includes improvement of the Central Corridor as one of the country’s six top priority sectors to focus on to achieve the 2025 Vision for Tanzania attaining middle income economy status.
According to the Transformative TRL Business Plan, the vision and mission statements for TRL are:
Vision: To be the choice for Affordable, Efficient and Safe Transport in Eastern Africa.
Mission: To provide Efficient, Cost Effective, Reliable and Secure Rail Transport Services in Eastern Africa
The key elemements of the Transformative TRL Business Plan are presented next.
Download Full Business Plan Summary : Click ‘TRL Executive Business Plan Summary‘