Bloomberg quoted Tanzania Zambia Railway Authority manager of the link that connects Tanzania’s port of Dar es Salaam to Zambia’s copper mines as saying that cargo volumes may be 14 percent below target this year because of work stoppages.
Mr Conrad Simuchile spokesman for the Dar es Salaam- based authority said that the strikes may also curb expansion plans, amid pledges by companies including Vedanta Resources Plcs Konkola Copper Mines to triple shipments on the line if capacity is increased. The stoppages were triggered by disputes over the nationality of employees as well as delays in paying wages.
Mr Simuchile said that “We have had illegal work stoppages every month for the past 10 months. We have lost not less than USD 4 million over the past 10 months due to work stoppages.”
According to data on the Bank of Zambia, Zambia is Africa’s biggest copper producer. Shipments of the metal rose 0.9% in the Q1 to 200,037 tonnes. The southern African nation is targeting production of 900,000 tons this year up from 819,000 tonnes in 2010.
Tazara manages the 1,860 kilometer railroad that links Dar es Salaam to New Kapiri Mposhi outside Lusaka, the Zambian capital. Tanzanian employees of Tazara as the authority is known have complained that the company prefers to hire Zambian workers and that their salaries aren’t paid on time.
Mr Simuchile said that Tazara jointly controlled by the Zambian and Tanzanian governments, employs 2,800 people and the staff complement in both countries is almost equal. The company had paid workers’ salaries for April and that payments for May will be made on time. The delay in payment was due to interruption of cash flows caused by work stoppages.
He said that as part of its current expansion plan, Tazara will add six locomotives from the Chinese government to its fleet of 12 in December to increase traffic. The authority’s expansion plans may be jeopardized if the work stoppages continue.
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