Maputo, Mozambique — 01 March 2013 – Long-lasting repairs on the Sena and Limpopo railroads in Mozambique will cost an estimated US$263 million, of which US$143 million will be spent on the Limpopo railroad, according to the chairperson of state rail and port management company CFM.
Rosário Mualeia said that the funding would make it possible to carry out work on the two lines to ensure that they remain in operation, even when flooding similar to this year’s occurs, reports Macauhub News Agency.
On the Limpopo railroad the floods caused estimated damage of US$4.5 million, of which US$3 million was the result of trains not being able to use the line.
On the Sena line damage was estimated to be US$10 million, which also included emergency repair work and the fact that trains had been unable to use the line.
The figures for the Sena line do not include losses incurred by mining groups Vale and Rio Tinto, which have been forced to break their coal contracts due to it being impossible to transport production to the port of Beira for export.
Last week Brazilian mining group Vale announced that problems on the Sena railroad had prevented its Mozambican subsidiary from shipping 250,000 tons of coking coal.
Source: Macauhub News Agency. For more information, click here.