Adding traction to rail with EU-backed investment

Funding from the European Union and France is helping the Mozambican state rail utility, Portos e Caminhos de Ferro de Moçambique (CFM), to meet its target of investing around $219 million by 2030 to put more freight and passengers on rail. The utility has secured €144m in funding from France and the European Union (EU) to upgrade the rail corridor connecting the Port of Maputo to the South African border town of Ressano Garcia. It will complete the doubling of the remaining 25 kilometres of the Ressano Garcia line. The financing includes two loans from the French Development Agency (AFD) totalling $133m. The goal is to modernise the country’s rail and port infrastructure, making them “sustainable, intelligent and resilient,” according to a joint statement. Agostinho Langa, chairman of the CFM board, says the upgrade will raise annual freight capacity from 14.9 million tons to 44.6 million tons, supporting regional trade and lowering road congestion. It will also improve access to the Port of Maputo for landlocked neighbours such as Zimbabwe and Eswatini (Swaziland). The $219m investment plan includes doubling essential lines, acquiring locomotives and passenger cars, and enhancing port logistics. It involves purchasing over 30 passenger carriages, at least 15 diesel-electric locomotives, and 250 wagons to meet rising mineral transport demand. Speaking at the announcement of the loan, French Ambassador Yann Pradeau highlighted France’s rail expertise and commitment to sustainable development, while EU officials emphasised that this investment under the Global Gateway strategy would enhance safe and clean transport corridors. It will reduce an estimated 30 000 tons of CO2 emissions from road trucks. The next phase includes hiring two consulting firms for design and supervision, as well as project management. Construction is expected to conclude by 2030, delivering modern infrastructure. These steps aim to strengthen the country’s ambition to become a logistics hub for the Southern African Development Community (SADC), with regional ports like Durban, Beira and Walvis Bay subject to congestion and delays, according to a statement. In September, CFM took delivery of two of 10 Indian- built locomotives, costing around $3.45m each. According to CFM, funding was provided by the African Development Bank, Standard Bank and BCI. To the north, in June this year, a project was launched to electrify the 912-kilometre railway from the Moatize Coal Mine in Mozambique to the Nacala port. It is being upgraded through a partnership with Vulcan Logistics and Central East African Railways. ER