Trade group explains Nacala Corridor underutilisation

The National Working Group on Trade Policy says while Nacala Corridor remains one of the country’s cost effective routes, lower input than anticipated has impacted its utilisation.

In an interview, chairperson of the group Frederick Changaya said while a full utilisation would mean moderate priced products for the consumer, issues to do with transit time and derailment are key in determining commercial viability of choice of route.

“In business, you want to diversify sources of supply that involves transport of goods,” he said.

Brazilian company, Vale Logistics Limited invested more than $4 billion (K2.9 trillion) in the development of the railway line from the Moatize Coal Mine in Mozambique through Malawi to Nacala Port on the other side of Mozambique.

In interview, Central East African Railways (Cear) communications manager Chisomo Mwamadi said the company has put in place several initiatives that have seen the transit time between Nacala and Blantyre reduced to two days from five.

Ministry of Transport and Public Works spokesperson James Chakwera said the ministry wishes there was huge utilisation to ease dependence on roads and generate more revenue. n