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Press Information Bureau
Government of India
Ministry of Railways
12-December-2004 19:16 IST
RITES and IRCON’s Joint Venture takes over Railways in Mozambique
RITES and IRCON led Joint Venture Company – Companhia Dos Caminhos De Ferro Da Beira, S.A.R.L. (CCFB) has taken over the Biera Rail corridor from CFM (a parastatal company operating railways in Mozambique). CCFB has been incorporated in Mozambique for implementation of Beira Rail corridor concession. RITES and IRCON hold controlling interest of 51 per cent, consisting of 26 per cent and 25 per cent respectively and the balance 49 per cent shares are held by the Government of Mozambique through CFM. In May, 2004, consortium of RITES and IRCON won Beira Rail Corridor concession project in Mozambique against international competition and stiff challenge from Chinese consortium in particular.

The concession entails the rehabilitation of the civil war ravaged railway system in Mozambique, fix and collect tariff for services rendered and run it for 25 years. Mozambique is the second country after Colombia where RITES will be a partner in a railway concession. The Beira Rail Concession involves investment of US$ 152 million of which US $ 104.50 million will be funded through credit provided by IDA, the soft loan arm of World Bank. The balance funding will be through the equity of shareholders and the commercial borrowings. The scope of concession involves rehabilitation, operation, maintenance, management and future development of Beira Rail Corridor at risks and cost of the CCFB. The Concession period is 25 years from the date of takeover of railway system.

Beira Rail Corridor is one of the three rail corridors of Mozambique, which serves both domestic and international transit traffic. Rail network under this corridor takes off from Beira Port, which is located on Central Mozambique. It has two railway lines Machinpanda line of 317 kilometre length in westernly direction connecting Beira to railways of Zimbabwe. The other line called Sena line moves in North and North-westernly direction and ends at Moatize coal mines. This line provides connectivity to Malawi Railways. The Sena line was closed in 1983 due to insurgency and civil war in the country. After rehabilitation of Sena line, the coal mines would be re-opened and export of coal resumed through Beira Port.