Nacala Port and Railway System
Fact Sheet
Overseas Private Investment Corporation
Washington, DC
August 17, 2006 Purpose of Initiative:
The U.S. contribution to the Nacala Port and Railway System supports the rehabilitation of an existing port in Mozambique and connecting rail system linking Mozambique and Malawi. Restoration of the transportation system, damaged during Mozambique's 16-year civil war, will improve the efficiency of food aid distribution in Southern Africa and, in particular, into Malawi, a country where one-third of the population is suffering from a combination of poor harvests, chronic poverty and a high rate of HIV/AIDS infection.
Partners:
The Overseas Private Investment Corporation (OPIC) , Corredor de Desenvolvimento do Norte (CDN), Central East African Railways (CEAR), ERL (Bermuda), Nacala Comercio Internacional (Mozambique), Railroad Development Corporation (USA), government contributions from the United Kingdom and Canada and private sector investors in Mozambique and the United States.
Partnership Targets:
Rehabilitation of the 77-km section of the line between Cuamba and the border with Malawi at Entre Lagos, infrastructure improvements for Malawi to improve drainage and reduce line interruptions during the annual rains, as well as refurbish the largest natural deep-water port on the east African coast -- the Port of Nacala. The U.S. Overseas Private Investment Corporation (OPIC) will provide US$29.6 million of financing for the project.
Progress Toward Targets:
The Project has
- Completely rebuilt the Nacala marshalling yard, where all freight enters and exits on the rail system.
- It has replaced worn rail, ties and switches as well as ballast.
- Built a fence around the entire yard to improve security.
- Repaired the track foundations between Nacala and Nampula.
Currently (2006)
- Workers are installing a communications network for the trains and rehabilitating the track as needed in Mozambique and Malawi.
- Eight locomotives will be acquired to improve freight hauling capability.
- Has begun planning to rehabilitate the 77-km section between Cuamba, Mozambique and the border with Malawi at Entre Lagos.
In both northern Mozambique and Malawi, the Project employs a total of 850 host country employees on a full-time basis and approximately 700 workers on a temporary basis each month. The Project provides employee training and education and actively participates in AIDS awareness and other important health initiatives for its employees.
Next Steps:
The Corredor de Desenvolvimento do Norte will continue to rehabilitate and manage the Nacala Corridor for a 15-year concession.
Resources:
OPIC will invest $29.6 million in this project in order to restore tracks, invest in locomotives, cranes, tugboats and other infrastructure related assets. Other government contributions include a £4.1 million contribution from the U.K. government and a Canadian $400,000 contribution from Canadian government.
USG Primary Points of Contact:
Overseas Private Investment Corporation: Larry Spinelli (Phone: 202-336-8690; E-mail: lspin@opic.gov)
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