Mozambique Corridor

The recent opening of the Chipata-Mchinji railway link opens up some new and exciting opportunities for the private sector players in the three three affected countries namely; Zambia, Malawi, and Mozambique.

Although the Chipata-Mchinji railway link is only 24 kilometres long, it provides connectivity into the Malawi railway network and further connects Zambia to the northern Mozambique railway network.

The Malawi railway network runs for 797 kilometres from Mchinji in the north to Nsanje in the south. Midway between Salima and Blantyre the railway line forks to the east and heads into Mozambique via the town of Cuamba. The Malawi railway network touches Lilongwe, Salima and Senga along Lake Malawi, and Blantyre the commercial capital. There are no railway lines in the northern part of Malawi.

In Mozambique, the railway system is generally confined to the northern part of the country. The Cuamba line coming in from Malawi runs about 900 kilometres from the Malawi border at Entre Lagos to the port of Nacala on the Indian Ocean. On route is the major town of Nampula and the seaside town of Lumbo.

The railway line from Nsanje in Malawi enters Mo

zambique via the junction town of Vila de Sena where the railway system then goes up north and down south. In the northern direction the railway extends for about 300 kilometres to Vila Moatize very close the Tete the provincial capital of Tete province. Tete is only about 150 kilometres from the Cahora Bassa dam. Towards the south, the line runs for about 400 kilometres from Vila de Sena to the port city of Beira via Inhaminga. Interestingly though, Vila de Sena is also located on the banks of the Zambezi river that pours out of the Cahora Bassa dam and heads south east to the Indian Ocean. This offers an option for river barges and other marine vessels to transport goods and people to and from the ocean along the Zambezi river.

The Chipata-Mchinji railway link therefore offers railway and marine transportation links to the port of Nacala, to the central and northern parts of Mozambique, to the Zambezi Delta midway between Beira and Quelimane, and to the port of Beira.

The options for cross border trade and more substantial exports and imports are now much wider for Zambia, Malawi, and Mozambique.

Zambia’s access to the railway and waterway networks of Malawi and Mozambique should trigger some new ideas for business and trade as all three countries sign up to the COMESA Customs Union and are challenged to be more productive, more efficient, and open up more opportunities.

Currently the port of Nacala exports sugar, tobacco, peas and tea to the rest of the world. This port handles imports fertilizer, oil based fuels, and containerised shipments. A passenger service currently runs thrice per week ferry people from Blantyre in Malawi to and from the port of Nacala.

The rail line from Moatize to Beira has focussed on transporting coal fro the mines in the Tete province for export across the Indian Ocean.

The private sector in Zambia, Malawi, and Mozambique now have the option to use the Nacala Corridor and Beira route to spread regional trade in the Growth Triangle formed by the three countries.

Key opportunities lie in the movement of bulk products such as cement, mealie meal, and other processed dry foods.

The motivation for Zambia to extend the railway line from Chipata to Petauke and then through to join the Tazara railway network at Serenje becomes more interesting as an effort to remove the road transportation from the rest of Zambia to Chipata. This 300 kilometre railway line will integrate the Mozambique, Malawi, Tanzania, and Zambia railway networks.

The net result will be that big trucks will no longer be the best way of transporting goods across the country because the railway system will do a better job and much cheaper.

The Zambian government has considered a project to build a dry port in Chipata as mechanism for storage of goods that are either to be exported or for goods to be imported. It is imperative that this infrastructure is built as soon as possible to support, promote, and facilitate trade via this new railway linkage.

It is quite clear that competition leads to lower prices and high levels of efficiencies. To this end, it is important for Zambia to have as many routes to the oceans as possible to generate the necessary competition amongst bulk cargo movers such that the exporter or importer gets the best deal. Goods will move across the region efficiently and at affordable costs as the transport infrastructure is developed.

This new door to the ocean adds to the competition amongst our traditional routes wherein Dar-es-Salaam competes with Durban and Walvis Bay. The addition of the ports of Nacala and Beria intensifies the completion in respect to costs, efficiencies, safety, and accessibility.

This philosophy is embraced in the North South Corridor that aims to develop a communication and trade infrastructure network along the Great Rift Valley and beyond. The goal of this program is to foster regional integration which brings about social and economic connectivity amongst neighbouring countries.

The private sector in Zambia is now challenged to take advantage of the new route to the south east coast of Africa and prevent the Chipata-Mchinji railway link from becoming the proverbial White Elephant project that has been the fate of many regional collaboration initiatives.

Published 31 August 2010