Brazilian firm Vale Logistics says over nine million tonnes of coal has been ferried through the Nacala Corridor, representing 82 percent of their budget for this year.
In his remarks at the Fifth Joint Stakeholders Progress Meeting of Nacala Corridor in Blantyre on Friday, Vale Logistics administration supervisor Oscar Kanjala said the nine million tonnes is proof that they are making progress and there is hope of reaching 100 percent.
“There has been progress since the launch of the railway, not just in terms of coal transportation. We have also improved on how we conduct our routine maintenance and preparations for the rainy season. We now conduct weekly inspections,” he said.
Nacala Corridor Logistics board chairperson Renato Torres said while Malawi stands to enhance transport of both exports and imports, the country will be able to generate about $50 million (about K37 billion) annually through concession fees, which is three percent of the 2017/18 national budget.
Minister of Transport and Public Works Jappie Mhango said the railway section is a boost to the country’s transport and infrastructure development.
The Nacala Logistics Corridor, launched in August this year, is an investment by Vale, Japanese firm Mitsui and Mozambique Ports and Railways Company CFM or Caminhos de Ferro de Mocambique, which comprises the $4.9 billion (about K3.6 trillion) 136-kilometre railway from Kachaso in Chikwawa to Nkaya in Balaka and the rehabilitated 99-kilometre railway from Nkaya to Nayuchi, a border between Malawi and Mozambique.
The railway line is part of an integrated logistics corridor in Malawi and Mozambique, comprising a 912-kilometre railway connecting Tete, Moatize Coal Mine through Malawi to the deep sea port of Nacala, the other side of Mozambique.
The Nacala Corridor started in 2012.