Mozambique railroad company is profitable, World Bank says

11 October 2007

Maputo, Mozambique, 11 Oct – Mozambique’s state railroad company, CFM, has emerged from near bankruptcy to become a profitable and financially credible company, the Mozambican representative of the World Bank said Wednesday in Maputo.

Michael Baxter said that the main railroads and ports, including the railroad networks of Nacala and Beira, as well as the ports of Maputo, Beira, Nacala and Quelimane have already been concessioned.

However, he said, the concession for the port of Nacala was not as profitable as expected and despite traffic at the port of Maputo having increased significantly, it still remained below projected levels.

According to Baxter, the CFM restructuring plan has been a success, because the company managed to reduce its staff of 20,000 to less than 1,500 permanent staff.

The World Bank, which was one of the main financiers of the state company’s restructuring process, is helping CFM to refurbish the Ressano Garcia railroad line, which links Mozambique to South Africa.

Cargo transport on that line is expected to reach 9 million tons per year as of 2009.

The program for renovation of the railroad in the southern network also includes work on the Goba line, the Salamanga branch line and access to the site of Maputo’s port. (macauhub)