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RDC sells interest in African rail corridor to Mozambican investor group


Railroad Development Corp. (RDC) recently sold its interest in the Nacala Corridor to Mozambican investor group INSITEC.

The corridor comprises Malawi's railway and Mozambique's Nacala port and railway. The corridor initially was concessioned in 1999 with the creation of Central East African Railways. In 2005, the Nacala port and railway were concessioned. In addition to freight-rail service, the corridor is used for passenger-rail service in select Mozambique and Malawi markets.

The sale will help bolster RDC's "war chest" for future African opportunities and advance the corridor to the "next logical step" of full integration into the local private sector, RDC officials said in a prepared statement.

"The sale of our economic interests to local investors represents a major development in the evolution of the Nacala Corridor," said RDC Chairman Henry Posner III. "Having restructured and stabilized a patchwork of publicly owned assets, the foreign investors have at this point created most of the value that we were in a position to achieve, [ranging] from equity investment and the arrangement of third-party debt financing to the streamlining and integration of the management of the infrastructure involved."

A privately held railway management and investment company, RDC owns railroad interests in the United States, Latin America, Europe and Africa, including Iowa Interstate Railroad Ltd.

Contact Progressive Railroading editorial staff.

More News from 9/15/2008