Mozambique exchanges equivalent to 52.9 ME of 2021 internal debt for new issuance
FILE - For illustration purposes only. [File photo: Presidente Ministério dos Transportes e Comunicações/Facebook]
The rehabilitation of the Machipanda railway line, which connects the Mozambican city of Beira and Zimbabwe, has already increased transport capacity to three million tonnes per year, said the Mozambique Railways (CFM).
According to information from CFM, consulted on Thursday by Lusa, the capacity of that 317-kilometre line was “previously” 0.4 million tonnes per year and the first phase of its rehabilitation, completed on 23 November cost US$150 million (€138 million). Its inauguration was attended by the President of Mozambique, Filipe Nyusi, and of Zimbabwe, Emerson Mnangagwa.
“Given the advanced state of degradation of the Machipanda Line, CFM has developed a rehabilitation project with the aim of ensuring the rail transport of people and goods with minimum safety standards, which was budgeted at an investment of around US$200 million [€184 million], of which US$150 million would be required initially,” reads a company report published this month.
The Machipanda line, the report continues, “has already improved traffic safety conditions”, namely “reduction in derailments” and transit time, which has been reduced from 18 to 12 hours, with “an increase in the line’s load capacity per axle” from 16.6 to 20.5 tons, with the “restoration of commercial speed to 60 kilometers per hour”.
The first phase of the investment was financed with US$30 million by CFM, which also had to resort to bank financing for the remaining 80%, namely to Standard Bank Moçambique, for US$79.62 million (€73.5 million); BCI, for US$35 million (€32.2 million); ABSA Moçambique, US$25 million (€23 million); and First National Bank Moçambique, US$7 million (€6.5 million).
READ: Mozambique is in negotiations with Zimbabwe to extend Machipanda line to Botswana
“The financing in question has a maturity of eight years, with a three-year grace period,” CFM explains, which previously highlighted the importance of the link to the Machipanda border post as “of strategic importance to the Beira Corridor, especially for neighbouring Zimbabwe, whose exports and imports are ensured by Mozambican ports and corridors”.
At the reopening ceremony, Mozambican head of state Filipe Nyusi stated that the link was now “safer and more comfortable”.
“The Machipanda railway line is now open for passenger transport, 26 years later, and in a safer and more comfortable way, after the rehabilitation and modernization of the track,” President Nyusi said.
The president said that the requalification of the strategic rail line would considerably increase the volume of cargo transported and reduce train transit time and travel costs.
“Freight trains used to run with many problems, as the track had many curves and tight radii, which led to accidents or loss of speed”, he noted.
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