Tsingshan Zimbabwe Steel Unit Partners With State Rail Firm to Boost Rail Haulage

Post by : Saif

Tsingshan’s Zimbabwe steel unit has partnered with the National Railways of Zimbabwe (NRZ) to expand rail transport for coal and steel, supporting higher freight volumes and reducing pressure on road transport.

Dinson Iron and Steel Company, part of Chinese metals group Tsingshan Holding Group, signed the agreement with NRZ as Zimbabwe works to improve its rail network and strengthen the movement of major industrial goods.

Dinson Steel Plans Large-Scale Coal Transport

Dinson Steel will transport about 1.1 million metric tons of coal from Hwange to its steel plant near Mvuma. The journey covers roughly 600 kilometres, making rail an important part of the company’s supply chain.

The agreement is also expected to support the movement of about 600,000 metric tons of steel products from the Dinson plant to markets across Zimbabwe and nearby countries.

Moving more of this cargo by rail could help reduce the number of heavy trucks on Zimbabwe’s roads while giving the national rail operator higher freight volumes.

Read more: Why Indian Railways Launched an LNG Train Despite 99.6% Electrification

Rail Upgrade Will Connect Steel Plant

The partnership includes plans to upgrade an 80-kilometre railway section between Gweru and Mvuma. The project is expected to cost about $27 million.

A further 50-kilometre rail connection between Mvuma and the Dinson steel plant is also planned under a build-operate-transfer arrangement.

Grand Railway Solutions, a Dinson group company, will finance the new track construction. After construction, the railway infrastructure will be transferred to NRZ, while the company will recover its investment through agreed offsets.

Private Company to Provide Trains and Fuel

Grand Railway Solutions will provide locomotives, wagons and fuel under the partnership. NRZ will contribute railway infrastructure and train crews.

The arrangement is designed to combine private-sector resources with the state railway network. NRZ expects the agreement to significantly increase its annual freight tonnage.

The rail operator also said the deal would shift a large share of coal transportation from roads to rail.

Zimbabwe Steel Industry Gets Better Logistics Support

Dinson Steel’s central Zimbabwe plant, which cost around $1 billion, began production in 2024. Better rail connections could help the company move raw materials to the plant and transport finished steel products to customers more efficiently.

Improved freight links could also support Zimbabwe’s wider steel industry by making the movement of industrial materials more predictable and reducing dependence on long-distance road haulage.

NRZ Seeks to Recover Freight Volumes

Zimbabwe’s National Railways has faced years of financial pressure and under-investment, which have affected its ability to maintain and expand its network.

NRZ freight volumes have fallen sharply from around 12 million tons in the 1990s to about 2 million tons in 2025.

The rail company has increasingly worked with private logistics businesses and major commodity customers to increase freight activity.

The Tsingshan partnership is therefore significant for both Dinson Steel and NRZ. More coal and steel moving by rail could provide the railway operator with additional revenue while supporting industrial production and improving Zimbabwe’s transport network.

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