Mozambique’s state-owned Ports and Railways posts €43 million profit in 2023

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Mozambique’s state-owned Ports and Railways posts €43 million profit in 2023

6:05 CAT | 29 Jul 2024

File photo: Wkimedia Commons

The profits of the state-owned company Ports and Railways of Mozambique (CFM) grew by 26% in 2023, to 2,979 million meticais (€43 million), despite the consequences of the bad weather, according to the report and accounts.

“The economic and financial performance for the 2023 financial year was positive, despite the bad weather, in particular the passage of Cyclone Freddy, which severely affected the central part of the country, having had a negative impact on rail transport and port handling of goods and passengers,” reads the report accessed by Lusa on Monday.

According to the document, the management of CFM, one of the largest Mozambican companies, decided to invest 65% of its profits in reserves and pay the remaining 35%, equivalent to 1,042 million meticais (€15 million) in dividend payments to the state, its sole shareholder.

In the document, the management recalls that the passage of Cyclone Freddy led to the “suspension of operations at the Beira Oil Terminal, Coal Terminal (TCC 8) and Maritime Services for a period of 10 days during the month of March”, and that railway operations “were seriously affected by the shutdown of the Sena Line for 35 days”, which “conditioned the traffic of coal and its handling at the Beira Coal Terminal”, generating traffic losses of around 506 million meticais (€7.3 million), “not including infrastructure [costs]”.

On the other hand, the southern region “was faced with bad weather that resulted in flooding, which contributed to derailments on the Ressano Garcia Line and the Goba Line”, in this case “with a negative impact on railway performance in the first half of 2023”, generating “significant losses”, estimated at 1.9 billion meticais (€27.4 million), “resulting from untransported cargo, not including severely affected infrastructure”.

The document also states that the company invested more than 8.747 billion meticais (€126 million) in improving rail and port equipment in 2023.

CFM currently operates the Ressano Garcia, Limpopo and Goba railway lines, the Beira Railway System, which includes the Sena, Machipanda and Marromeu lines, the section common to the three lines of the southern network and the Maputo manoeuvring area, the general workshops of the south and centre and the Matola Aluminium Terminal.

It also operates the fuel terminals in all national ports, the cereal and coal terminals in the port of Maputo, and the ports of Quelimane, Nacala and Pemba.

CFM closed 2023 with a share capital of 1,242,981,000 meticais (€17.9 million), fully owned by the Mozambican state.

Source: Lusa