Zimbabwe’s Dinson Steel Secures Rail Deal to Transport 1.7 Million Tonnes of Coal and Steel Annually
Zimbabwe’s National Railways of Zimbabwe (NRZ) has entered into a strategic partnership with Grand Railway Solutions (GRS) and Dinson Iron and Steel Company to transport 1.7 million tonnes of coal and steel products annually, supporting the expansion of the country’s steel industry and strengthening its rail freight network.
The agreement will facilitate the transportation of approximately 1.1 million tonnes of coal from Hwange to Dinson Steel’s Manhize plant near Mvuma, covering a distance of about 600 kilometres.
An additional 600,000 tonnes of steel products will be transported from the facility to markets across Zimbabwe and the wider region.
Dinson Steel is part of China’s Tsingshan Holding Group, a major metals producer. Its steel plant, valued at approximately US$1 billion, began production in 2024 and is emerging as a significant source of industrial freight demand in Zimbabwe.
Private Sector Partnership to Strengthen Rail Freight
Under the agreement, Grand Railway Solutions will provide locomotives, wagons and fuel, while NRZ will provide access to its railway infrastructure and train crews.
The partnership also includes plans to upgrade an 80-kilometre section of railway between Gweru and Mvuma at an estimated cost of US$27 million.
A further 50-kilometre railway connection is planned to link Mvuma directly to the Manhize steel plant.
The new railway link is expected to be developed under a build-operate-transfer arrangement, with Grand Railway Solutions financing construction before transferring the infrastructure to NRZ. The company will recover its investment through agreed offsets.
The arrangement is designed to increase rail freight capacity, improve the movement of bulk commodities and reduce reliance on road transport, particularly for coal deliveries from Hwange to the steelmaking facility.
NRZ expects the partnership to significantly increase its annual freight volumes while shifting much of the coal traffic from Hwange from road to rail.
NRZ Seeks to Rebuild Freight Capacity
The agreement comes as NRZ works to restore its freight operations following years of underinvestment that have affected railway infrastructure, locomotives and rolling stock.
The state-owned operator’s annual freight volumes have declined from approximately 12 million tonnes in the 1990s to around 2 million tonnes in 2025. This decline has increased the importance of partnerships with private logistics companies and major industrial customers to generate new freight demand and support infrastructure investment.
By securing a substantial, recurring volume of cargo linked to Dinson Steel, NRZ stands to strengthen its revenue base while making greater use of its existing railway network.
The partnership also demonstrates how private-sector participation can help finance railway improvements at a time when public investment alone may be insufficient to address the network’s infrastructure needs.
Supporting Zimbabwe’s Industrial and Regional Trade Ambitions
The planned movement of coal and steel by rail could improve logistical efficiency for Zimbabwe’s steel industry by connecting coal-producing areas with manufacturing facilities and linking finished products to domestic and regional markets.
Rail transport is particularly suited to moving large volumes of bulk commodities over long distances.
Shifting more freight from road to rail could reduce pressure on highways, improve transport efficiency and support the competitiveness of Zimbabwean steel products.
For Dinson Steel, a more reliable transport system would help connect its Manhize operations with essential raw materials and distribution channels.
For NRZ, the agreement offers an opportunity to rebuild freight volumes around a major industrial customer while attracting private capital into railway infrastructure.
However, the anticipated benefits will depend on the successful implementation of the planned track upgrades, the construction of the new railway connection and the ability of the parties to achieve the projected annual freight volumes.
The agreement represents a significant step towards strengthening the links between Zimbabwe’s mining, energy and manufacturing sectors.
If implemented as planned, it could help improve the efficiency of the country’s freight network while supporting industrial growth and regional trade.
