Sudan: Nile Valley Railways

[John Ashworth]

NILE VALLEY RAILWAYS (SUDAN)

Posted on 26 March 2010 by Railways Africa Editor

Citadel Capital, a leading private equity firm in the Middle East and Africa with $US8.3 billion in investments in 15 industries spanning 14 countries, has announced the signing of a right-of-way agreement with the Sudanese Railway Corporation (SRC), the first step in fledgling rail operator Nile Valley Railways’ (NVR) entry into the promising Sudanese market.

Citadel Capital managing director Karim Sadek is quoted saying: “This agreement will allow NVR to proceed with the purchase of rolling stock, including wagons and locomotives, that will run on existing infrastructure in which the SRC is making substantial investments.” The agreement, on which due diligence is currently being finalised, will allow NVR to offer freight services on SRC lines under a revenue-sharing agreement. SRC operates more than 4,500km of route linking the key coastal city of Port Sudan to Khartoum, Wadi Halfa on the Egyptian border and to South Sudan. A rehabilitated line reopened early in March runs between Babanusa in central Sudan and the southern town of Wåu. Earlier this month, Citadel Capital announced the acquisition of a 49% stake in Sheltam Railways, the largest shareholder and lead investor in Rift Valley Railways (RVR), concessionaire of the Kenya and Uganda railways.