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RDC-led consortium assumes control of Mozambique's railway, port

A week ago, private firm Corredor de Desenvolvimento do Norte S.A.R.L. (CDN) began operating Mozambique's Nacala port and railway under a 15-year concession — an "important and long-awaited step" in the evolution of Africa's Nacala Corridor, according to Railroad Development Corp. (RDC), a member of a consortium that controls CDN.

The corridor comprises Mozambique's Port of Nacala and Northern Railway network, and Malawi's railway. Mozambique's government sought a concession to connect landlocked Malawi and Zambia to the Port of Nacala.

CDN plans to rehabilitate a 48-mile section of a line between Cuamba and Malawi; improve infrastructure and drainage, and reduce line interruptions during annual rains in Malawi; and refurbish the deep-water port in Nacala. The U.S. Overseas Private Investment Corp. will provide $29.6 million to help finance the project.

Since 1997, an RDC-led consortium including Edlow Resources Ltd., MANICA, Mozambique’s Port and Railway administrations, and Mozambican private investors has been trying to create the first regional integrated port/railway transportation system for Malawi, Mozambique and Zambia. In 1999, the consortium obtained a concession to operate Malawi’s railway.

RDC is part of rail-related joint ventures in the United States, Argentina, Guatemala, Peru, Estonia and Malawi.

Contact Progressive Railroading editorial staff.

More News from 1/17/2005