Maputo, Mozambique — 10 December 2012 – Vale Mozambique, a subsidiary of Brazilian mining giant Vale, has laid the first stone of the project to build 136km of new railway line and repair an existing 99km of the line in Malawi.

Macauhub News Agency quotes Mozambican daily newspaper Notícias as reporting that this phase, which includes construction of 45 railway bridges and three road viaducts, is expected to cost US$1.1 billion and is intended to be used to carry coal mined in Tete province to the deep water port of Nacala.

Starting in Moatize, the line reaches the border with Malawi in the Cambulatsissi region, travels northeast to Nkaya Junction, covering 136km of new line, where it then links to the Central East Africa Railways railroad, covering another 99km of railway line to be repaired as far as Nayuchi/Entrelagos.

Work on this phase of the Nacala Corridor railroad in Malawi is due to be concluded in 2014.

In December 2011, Vale signed a rail concession contract with the Malawi government to build and operate part of the Nacala Corridor, covering 136km of the railway line, between the Mozambique/Malawi border and the existing section of railway in Malawi.

In July 2012 the Nacala Integrated Logistics Corridor (CLIN) consortium, made up of Vale and state rail and port company Portos e Caminhos de Ferro de Mozambique, signed rail and port concession contracts with the Mozambican government that outlined construction of rail branch lines linking Moatize and Nampula and a new port terminal in Nacala-a-Velha. These projects are part of the Nacala Corridor on the Mozambican side of the border.

The concession contracts signed with the Malawi and Mozambique governments, as well as concession contracts with CLIN and Central East Africa Railways, make it possible to build the railway and port terminal needed to carry coal from the Moatize region to the port of Nacala.

Source: Macauhub News Agency. For more information, click here.