Government approves major changes for Nacala / North ports and rails

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Government approves major changes for Nacala / North ports and rails

1:19 CAT | 08 Jun 2016

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The Nacala Corridor railway line is to soon receive US$3 billion investments to strengthen transport capacity for coal mined in Moatize, Tete province, reports Notícias.

A statement released yesterday at the end of another Council of Ministers said that, of the total amount, US$1.9 billion would be invested in Mozambique and the remainder in Malawi, whose territory the line crosses.

The Council of Ministers yesterday therefore approved an agreement between the Mozambican government, as granting authority, and railway and ports concessionaires in the northern region, including the Northern Development Corridor, SA (CDN) and the Nacala Integrated Logistic Corridor SA (CLN).

According to cabinet spokesman and Deputy Minister of Health Mouzinho Saide, a direct agreement between the government and concessionaires is needed to enable the granting of loans for the planned interventions.

“The agreement does not create any financial obligation on the government, since the risks of logistics operations will be the responsibility of the concessionaires and their promoters, including the Vale and Mitsui companies,” he explained.

These investments will significantly increase the capacity of the line which, on its inauguration in 2015, handled 22 million tons per year.

The government yesterday also approved the transfer of the Nacala Port contract to another entity with the same shareholders, with no extension of the deadline, and maintaining the same rights and obligations.

The government also approved an addendum to the concession agreement of the railway lines of Moatize, Malawi (Chinheche) and the Nacala-a-Velha rail extension from Mossuril and Ponta Namuaxi, and also approved the concession of the coal port terminal of Nacala-a-Velha and the railway line to the Northern Development Corridor Company.

It also authorized the sale of all shares held by the Mozambique Railways (CFM) in the concessions of the Northern Development Corridor, SA (CDN), the Integrated Logistics Nacala Corridor (CLN) and Central East African Railways Company Limited (CEAR) of the Republic of Malawi.

Source: Notícias