Mozambique’s railway company sets up leasing company and invests US$70 million

7 March 2006

Maputo, Mozambique, 07 March – Mozambican railway company, Caminhos de Ferro de Moçambique (CFM), have set up a leasing company to hold some of its assets and is going ahead with a US$70 million investment in refurbishing its rolling stock and railway line, according to local press reports Monday.

The new leasing company, called Xitimela Leasing, will directly manage 19 locomotives, which are currently being modernized, according to daily newspaper Diario de Zambeze.

This equipment will, as of this year, be rented out to railroad operators I the region and all over the country.

The new company will be 67.5 percent owned by CFM and 32.5 percent owned by private partners, the paper said.

CFM, which manages the railway network and the country’s main ports, is making investments in the sector estimated at US$70 million.

The main investment of US$31 million is related to modernizing 35 locomotives.

The remainder is being used to modernize carriages (US$20 million) and refurbish the railway lines of Ressano Garcia (US$12 millions), of Goba and the Salamanga branch (US$7 million), and the access branches to the ports of Maputo and Matola. (macauhub)