Mocambique - new railways

[John Ashworth]

Mozambique: Two New Railways Planned

25 October 2009
allAfrica.com

Nacala — The Mozambican government is planning two new rail lines that will link the centre of the country to the northern line that runs from the port of Nacala to Malawi.

Transport Minister Paulo Zucula told AIM that one of the lines would be dedicated to the export of coal by the Brazilian mining giant Vale, which holds one of the two mining concessions in the Moatize coal basin, in Tete province (the other is held by the Australian company, Riversdale).

"We shall have a line dedicated to coal, and Vale, for reasons of economic and financial viability, will clearly choose the cheapest route", said Zucula. "Then we shall have another line dedicated to development, which would go ahead with or without the coal. The government projects this line to cross Zambezia province, starting in the area of Mutarara, crossing into Zambezia in Morrumbala, crossing Gurue district, and linking up with the Nacala line in Malema, Mutuali or Ribaue (in Nampula province)". (The starting point for this projected line, Mutarara, is in Tete province, on the Sena line that runs from Moatize to the port of Beira).

"So we will have two lines", said Zucula. "But they won't have the same function, they won't cost the same, and they don't have the same structure".

Zucula was speaking after the signing on Friday, in Nacala, of the protocol of intentions of the "Nacala XXI" project, which envisages investment of 1.6 billion US dollars in Nacala port and the railways feeding it. The protocol was signed by the government, Vale and the Mozambican group, Insitec Investments, which is the main shareholder in the Northern Development Corridor (CDN), the consortium that operates the port and the existing line.

A key player in the northern corridor is Malawi. "Right now the client who does most to make the Nacala line function is Malawi", said Zucula. "So I invited the Malawian Transport Minister (Kumbo Kachali) here as a guest to witness this ceremony".

CDN chief executive officer, Fernando Couto, told AIM that the line carrying coal from Moatize to Nacala will be about 900 kilometres long. But if the existing railways are used, only an extra 100 kilometres needs to be built from scratch in southern Malawi

However, Couto warned that the current rail system inside Malawi is in poor condition, "so in practice, I would say that construction of a new line, or far-reaching rehabilitation of the existing line is required. The best thing to do is use the existing route, so that there are no implications of displacing people. The line is already there - but the tracks will have to be taken up and the line rebuilt inside Malawi".

On the Mozambican side of the border, donor funds ensured the rehabilitation of the line from Nacala as far as Cuamba, in Niassa province. But the final 77 kilometres from Cuamba to the Malawian border needs rehabilitation to bring it up to the same quality as the rest of the liNacala (Mozambique), 25 Oct (AIM) - ne.

Further investments are needed on the Cuamba-Nacala stretch, including strengthening bridges, and eliminating tight curves which currently limit the size of trains to a maximum of 25 wagons.

Couto said that when coal exports begin, "the trains will up to 100 wagons long. But currently, even with 25 wagons, the train seems very long, and needs two locomotives to pull it".

Some families in Nacala city have built houses close to the railway, and Couto said they will have to be resettled. "There's no way that the train can pass so close to people's houses, for their own comfort and safety", he stressed.

Couto said that a projected route across southern Malawi has existed since 1964. Malawian dictator Kamuzu Banda had even suggested that the Nacala-Malawi line should have a branch running to Moatize, but the Portuguese colonial government was not interested.

1.6 Billion Dollars for the Nacala Corridor

26 October 2009

The Nacala port and rail system in northern Mozambique is to benefit from investment of 1.6 billion US dollars to enable it to handle coal exports from Moatize in the western province of Tete.

The agreement to this effect was signed in Nacala on Friday by Mozambican Transport Minister Paulo Zucula, the chairperson of the Mozambican group Insitec Investments, Celso Correia, and the chairperson of the Brazilian mining giant Vale, Roger Agnelli.

Vale is one of the two companies that have been granted mining concessions in Moatize (the other is the Australian company Riversdale). Insitec is the largest shareholder in the Northern Development Corridor (CDN), the consortium that operates the Nacala port and railway.

The huge investment envisaged has been dubbed “Nacala XXI”, and has become necessary because the Sena line between the Moatize coal basin and the port of Beira will not be able to handle all the coal exports once the mines are running at full capacity in a few years time.

Vale and Riversdale have both been looking at alternative ways of moving the coal, including shipping it down the Zambezi river on barges.

Vale has now reached the conclusion that it makes economic sense to use Nacala, often regarded as the best deep water port on the east African port. Unlike Beira, Nacala does not require dredging and can take ships of any size.

This, however, will require building a new railway to link Moatize to the Nacala corridor. About 100 kilometres of the new line will cross southern Malawi. The existing Nacala-Malawi line will be strengthened, and by the end of the project will be able to move 20 million tones of cargo a year.

Presenting the project at the Nacala ceremony, the Insitec general manager, Giva Rehamtula, said that “Nacala XXI” is a partnership between the government, Vale and Insitec to develop the Nacala Corridor which has been under negotiation for more than a year.

“The objective of this project”, he said, “is an integrated logistics system between Mozambique, Malawi and Zambia, using the singular advantages of Nacala port via a competitive rail system”.

The investment in port and railway infrastructure and equipment, and in training and management, he added, will allow CDN to act as a lever in developing strategic sectors of the Mozambican economy.

Currently the port is severely underused, only handling 950,000 tonnes of cargo a year, while the railway only moves 250,000 tonnes.

Rehamtula stressed that the Nacala Corridor is not competing with the Beira Corridor, but complementing it in handling the mineral wealth of the region.

Over 200 kilometres of new railway will be required, linking the Sena line to the Nacala Corridor via Malawi. The current port facilities will be expanded, and a new multi-use terminal will be belt in the adjacent district of Nacala-a-Velha.

Rehamtula said that the product will stimulate development of the area that falls within the influence of the Nacala Corridor. It will increase Mozambique’s Gross National Project, improve the balance of trade, generate sustainable jobs, and create a supporting fabric of local businesses.

“We want to improve the quality of life wherever the trains go”, he declared.

Malawi’s commitment to the project was shown by the presence at the event of its Transport Minister, Kumbo Kachali.

source: AIM NEWS