Mozambican government approves construction of Moatize-Macuse railway by private company

4 December 2013

Construction of the 525-kilometre railway from Moatize, in Mozambique’s Tete province, to Macuse, in Zambézia province, and a port terminal will be awarded to a private construction company, a government spokesman said Tuesday.

Alberto Nkutumula said that the Council of Ministers had approved a decree setting out the terms for concession of the Moatize/Macuse railway as well as the facilities at the Macuse port terminal, in the district of Namacurra, in Zambézia province.

Cited by daily newspaper Notícias, Nkutumula said that the decree set out the legal basis for the concession, to a private operator, of construction, operation, maintenance and management of the facilities due to be built, as well as their commercial exploration.

The newspaper added that the project had an estimated cost of US$3.5 billion and Thai group Italthai Engineering are considered to be the best candidates for the project.

The Thai group is competing against the CLZ (Zambezi Logistics System) consortium, made up of the China Communications Construction Company (CCCC), Australia’s Aurizon and Mozambique’s Investe Logistica, as well as the SPI/Patel Engineering/Grindrod group with Indian and South African investors. (macauhub)