Mozambique: State rail operator CFM to run 230 km of lines in Zimbabwe for freight

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Mozambique: State rail operator CFM to run 230 km of lines in Zimbabwe for freight

11:01 CAT | 08 Apr 2025

File photo: Folha de Maputo

Caminhos de Ferro de Moçambique (CFM), Mozambique’s state-owned rail operator, is to take over the running of more than 230 kilometres of railway line in neighbouring Zimbabwe, overseeing the transportation of freight along two corridors, according to information from the company.

According to information made available by CFM, what is at stake are two operational understanding agreements signed on 14 March with the National Railways of Zimbabwe (NRZ) by the two governments.

“This milestone strengthens cooperation between the two countries and boosts efficiency in freight transport,” states the company, explaining that the agreement involves the southern corridor, between Chicualacuala and Rutenga, covering 148 kilometres, and the central corridor, between Machipanda and Nyazura, another 84 kilometres.

CFM adds that, under the terms of this agreement, it will be “responsible for the availability of locomotives in good condition, fuel supply and crew to operate in the territory” of the neighbouring country, while NRZ will “guarantee sufficient traffic volumes and track maintenance, ensuring safe and continuous operations.

“With this partnership, we expect more dynamism and efficiency in the flow of cargo, guaranteeing a reliable and economical service to railway customers,” the company adds.

The new arrangement means CFM overseeing the transportation goods from Zimbabwe to ports in Mozambique, also using the national railway network.

READ: Mozambique and Zimbabwe sign railway agreement

One of these routes on Mozambican territory is the Machipanda line between the city of Beira, on Mozambique’s coast, and the border with Zimbabwe, inland. An upgrade of this line has already made it possible to increase transport capacity to 3 million tonnes a year.

According to information from CFM reported by Lusa in August, the capacity of the 317-kilometre line in Mozambican territory was once 0.4 million tonnes per year and the upgrade cost $150 million (€138 million) in the first phase, which was completed on 23 November 2023.

The re-inauguration was overseen by the then president of Mozambique, Filipe Nyusi, and his Zimbabwean counterpart, Emerson Mnangagwa.

“In view of the advanced state of degradation of the Machipanda Line, CFM developed a project to rehabilitate it with the aim of guaranteeing the railway transport of people and goods with the minimum guaranteed safety, which was budgeted at an investment of around 200 million dollars [€184 million], of which 150 million dollars would be needed in the initial phase,” reads the previous information from the company.

The first phase of the investment was financed to the tune of $30 million by CFM, which also had to resort to bank financing for the remaining 80%, in the case of Standard Bank Moçambique, with $79.62 million (€73.5 million), BCI, with $35 million (€32.2 million), ABSA Moçambique, with $25 million (€23 million), and First National Bank Moçambique, with $7 million (€6.5 million).

“The financing in question has a maturity of eight years, with a grace period of three years,” explains CFM, which previously stressed the importance of the link, up to the Machipanda border, as “of strategic importance for the Beira Corridor, especially for neighbouring Zimbabwe, whose exports and imports are ensured by Mozambican ports and corridors.”

Source: Lusa