The start of pig iron production in two municipalities in Angola is expected to increase the turnover of the Moçâmedes Railroad from 700 million to over 1 billion kwanzas per year, said the financial manager of the railway management company.
António Conceição also told the Angop news agency that the company, along the 905-kilometre route that covers the provinces of Namibe, Huíla and Kwando Kubango, currently carries about 12,000 tonnes of miscellaneous cargo per month, which could increase to 400,000 tonnes when iron ore exploration begins.
The exploration of the ore and its transformation into pig iron will take place in the municipalities of Cutato, Kwando Kubango and Jamba, in Huíla, and the board of the Moçâmedes Railroad is now waiting for the beginning of this process to increase the tonnage of cargo and therefore its turnover.
The financial manager added that CFM’s average monthly turnover is around 70 million kwanzas, far from the balance of the operating account, as operating costs are set at 200 million kwanzas, which is 35% of the expenditure structure of the public company, the rest being covered by the State.
António Conceição pointed out that CFM is contacting companies that manufacture rolling stock, to buy wagons for ore transport, and the companies that will explore the iron ore deposits are expected to share the cost of their acquisition.
During the first half of 2019, the Moçâmedes Railroad carried about 72,000 tonnes of cargo, ranging from granite to cargo accompanied by passengers, an increase of 22% over the same period of 2018. (Macauhub)