Business Headlines

TAZARA to triple profit margins

THE Tanzania Zambia Railway Authority (TAZARA) targets to triple its profits to US$44.1 million in the last half of this year due to a petroleum products contracts from Democratic Republic of Congo (DRC) and Malawi.
This follows an agreement which was signed in July with African Fossils Limited of Tanzania to transport 18 million litres of petroleum products to the DRC in the next one year.
The railway firm has also secured a contract to transport 48 million litres of fuel to Malawi, according to the TAZARA report for the financial year ending June 30, 2016 availed to the Daily Mail recently.
“TAZARA expects its profit to reach US$44.1 million over the next financial year, thanks to the planned improvements from US$13.5 million profit in 2015/16,”the report reads.
During the period under review, TAZARA earned US$13.5 million profit in 2015/16 due to improved freight traffic performance.
In the same period, the annual freight traffic for the authority reached 130,000 tonnes in 2015/16 from 87,000 tonnes in 2014/15, representing an increase of 49 percent.
On the outlook, for the 2016/17 financial year, the company plans to improve its cargo traffic by 200 percent and reach 381,000 tonnes.

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