MOZAMBIQUE: The African Development Bank has agreed financing for state-owned rail and port authority Portos e Caminhos de Ferro de Moçambique to purchase locomotives, wagons and tank containers. This aims to improve the competitiveness of the 88 km Ressano Garcia rail corridor between the port of Maputo and the South African border, which generates more than 90% of rail traffic volumes and 70% of CFM’s rail volumes.
AfDB approved a US$40m corporate loan on January 31, and plans to mobilise an additional US$30m from other lenders.
CFM will use this acquire 10 diesel-electric locomotives of 3 000/3 300 hp, as well as 300 wagons and 120 tank containers. The funding will also cover a three-year loco maintenance programme, and training of CFM staff.
The corridor is used to export bulk magnetite, ferrochrome, chromium ore and coal from South Africa through the port of Maputo, which provides the shortest seaport access.
The new stock is expected to lower the cost of transporting goods, reduce journey times by 2 min/km and cut road fatalities through modal shift to rail.
It is also expected to increase the number of private companies using freight services and ports.
More widely, the project aims to strengthen intra-African trade and integration by increasing capacity and the volume of goods transported from neighbouring countries, providing South Africa, Eswatini, Malawi, Zimbabwe and Zambia with improved port access.
Foreign earnings are predicted to grow from $225m in 2022 to $360m in 2036, bringing the government a cumulative total of $1bn in tax revenue.
