Mozambique state rail and port company takes back management of central rail system

9 December 2011

Maputo, Mozambique, 9 Dec – Mozambican state rail and port company, Portos e Caminhos de Ferro de Moçambique (CFM), Wednesday officially resumed management of the rail system in central Mozambique, following rescission of the contract with Indian consortium Ricon, according to the Mozambican press.

The system includes the Machipanda line, which provides a link with neighbouring Zimbabwe, and the Sena line, which runs between the province of Tete and the port of Beira, in Sofala province, which had been under concession to the Companhia dos Caminhos de Ferro da Beira consortium, led by Indian consortium Ricon, made up of state companies Rites Ltd and Ircon International.

Mozambique’s Transport and Communications Minister, Paulo Zucula, said Wednesday in Maputo that the consortium, which was partnered by Portos e Caminhos de Ferro de Moçambique, had failed to meet many of its contractual obligations and had not finished work within agreed deadlines, as well as not even having touched the Machipanda line.

For these reasons, according to the minister, in December 2010, the government started the process of dissolving the contract, “which was formally concluded,” Wednesday and “a government commission is currently in Beira to receive the rail system back again.”

Once this process is completed, the minister said, the government will start refurbishment of the Machipanda line and improve the capacity of the Sena line,” said Zucula at the Mozambican parliament during a session of government questions. (macauhub)