Lack of money hinders Corridors’ development

Lack of money continues to hold back the country’s dream of fully operationalising its transport corridors, pushing up the cost of imports and exports by about 15 percent.

Currently, it is Northern and Nacala corridors that are operational with Sena and Mtwara yet to be developed.

While government is said to be looking at ways to have Sena and Mtwara corridors operational, the delays in opening the corridors have bearings on the transport sector and the economy as a whole.

Currently, Malawi pays 15 percent more on transport from the sea compared to other countries, according to a recent study by the Common Market for Eastern and Southern Africa (Comesa).

For Malawi, a land-locked country, the urgency to have the corridors operational is important as they connect to sea ports in Mozambique and Tanzania for smooth transportation of imports and exports.

In an e-mailed response to a questionnaire on Tuesday, Ministry of Transport and Public Works spokesperson James Chakwera said while Nacala and the Northern corridors are operational, having all the corridors in full swing could be more desirable.

He said: “International ports are always competing for customers, especially within the hinterland they serve. To be able to do so, they reduce some of the port charges to attract traffic.

“Any such reduction translates in a corridor being attractive and less costly to hinterland countries it serves. Again, relying only on one corridor is equivalent to putting all of our eggs into one basket, a case in point is the insecurity to the Beira Corridor, which handles most of our traffic. Other corridors, although expensive, become life servers in times of emergencies.”

Chakwera said a country needs as many options as possible for moving its cargo and people and government is working on making these options available to accord users a chance to foster healthy competition, and consequently reducing the transport costs.

He dispelled fears that government has only prioritised the development of Nacala Corridor alone, saying there is work being done to ensure that other corridors are equally developed and utilised.

However, Chakwera could not quantify how much money would be required to have the other corridors operational, saying that will be known after an assessment is done.

Transport experts say it would be beneficial for Malawi to have as many corridors to offer users a choice and, at the same time, cushion them from eventualities, natural or man-made, that could render one corridor unusable.

There are fears of insecurities on the Beira Corridor because of hostilities between government and opposition forces, which have resulted in some of the trucks carrying cargo, particularly fuel destined for Malawi being attacked.

The Nacala Corridor, which connects to the deep sea port of Nacala, has recently benefited from the newly-constructed rail line by Vale Logistics Limited.

Coal is being moved from Tete, the western side of Mozambique, to the port of Nacala in the East.

To ensure smooth movement of coal, Vale has had to rehabilitate the entire corridor from Malawi to the port of Nacala.

Within the confines of the concession agreement, Malawi is already benefitting from the improved railway line.

On the other hand, the Northern Corridor connects Malawi to Dar es Salaam in Tanzania, but the challenge is that apart from the road, most of the facilities put by Malawi Cargo Centres (MCC) are not being utilised such as fuel depots in Dar es Salaam, Mbeya and Chilumba in Karonga.

Similarly, the rail line from Dar es Salaam to Mbeya and associated facilities such as fuel wagons, which were meant to be used to transport fuels are not being utilised.

Since 2014, a study has been going on to establish the feasibility of reopening the Sena railway line, which is the life-line of the Sena Corridor.

As for Mtwara Corridor, it is a unique project in that part of it is by water transport and caters for three countries, namely Malawi, Tanzania and Zambia.

The project  required the rehabilitation of ports, both in Malawi and Tanzania, the  commissioning of a heavy capacity ferry on Lake Malawi and the rehabilitation of  the roads from Lundazi (in Zambia) to Nkhata Bay via Mzimba and between  Mbamba Bay and Songwe in Tanzania, according to the study.

Malawi Confederation of Chambers of Commerce and Industry (MCCCCI) officials were not immediately available for comment, but in an earlier statement its chief executive officer Chancellor Kaferapanjira urged government not to take away attention from existing transport routes, which would prove economical in the short-term.

In an interview yesterday, Chancellor College economics professor Ben Kaluwa emphasised on the need for Malawi to prioritise the transport corridors as they are key to development.

“We need the country to have access to the sea and even the neighbouring countries at cheapest rates.

“Rail is the second cheapest mode of transport to water, hence the need to put it as a priority in strategic planning,” he said. n