Indian firms to manage Mozambique's rail system
Wednesday, 06 October 2004, 19:30 IST
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MAPUTO: An Indian consortium has signed a contract to manage the Beira rail system in central Mozambique, an important linkage between the country's coalmines and its major port. The Indian companies, RITES and Ircon International, signed the contract with the Mozambican government and the state-run rail company, CFM, in Dondo in the central Mozambican province of Sofala Tuesday, Xinhua reported. A new company, Beira Railway Company, has been formed with RITES and Ircon having 51 percent ownership and CFM 49 percent. RITES and Ircon will invest $55 million and the World Bank is providing a loan of $110 million. Most of the money will be absorbed in rebuilding the Sena line from Beira to the coalmines at Moatize in the western province of Tete, including a spur into neighbouring Malawi. Rebuilding the railway line is crucial for development of the Zambezi valley and revival of the coalmines. Major international mining companies such as Anglo-American, Rio Tinto, BHP-Billiton, and CVRD of Brazil, have expressed interests in running the coalmines but are chary to invest until the transport link to the coast is guaranteed.
Source: IANS
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