Nacala Has Potential To Cut Costs By 45%
Nacala Logistics Malawi believes that railway transport is highly competitively priced and has the potential to slash transportation costs in the southern African country by over 45%, according to Wezi Kalua, the head of communication. Kalua said this in response to questions on the state of projects being undertaken by Nacala Logistics.
Kalua reported that in 2023, Nacala Logistics transported over 114 million litres of goods for both Malawi and Mozambique, with the company expecting this volume to surge by at least 20% in 2024.
Regarding rehabilitation efforts, Kalua highlighted the modernisation and excellent condition of railway transport systems on the Nacala Corridor, boasting an average speed of 70km per hour on the mainline. Ongoing rehabilitation works are currently focused on the northern sections connecting Balaka through Salima to Lilongwe and Chipata.
Kalua added that in 2023, Nacala Logistics transported 548,000 metric tonnes of cargo, a significant increase from the total of 276,000 metric tonnes in 2022. Passenger numbers also rose, with 442,661 passengers in 2023 compared to 268,486 in 2022.
In October 2023, Nacala Logistics organised a ceremony to commemorate the inaugural train’s departure, which carried approximately 1,6 million litres of fuel from the Port of Nacala to the National Oil Company of Malawi in Blantyre.
Last year in October, the presidents of Zambia, Malawi, and Mozambique participated in the inauguration of the rehabilitated, expanded and modernized Nacala Port in Nampula Province, Mozambique. The three countries signed a tripartite institutional agreement on the Nacala Development Corridor, while respective transport ministers signed agreements related to road and rail infrastructure.
Zambia aims to leverage its geographic position to become a truly land-linked country through the development of transport corridors, actively seeking land in Nacala and Beira from Mozambique for the development of dry ports.
The Nacala Logistics Corridor, stands as a monumental logistical initiative aimed at interconnecting regions in Southeast Africa, facilitating efficient transportation networks that directly benefit Mozambique and Malawi, with indirect connections to Zambia and Zimbabwe.
At its core, the corridor prioritizes the transportation of coal extracted from mines in western Mozambique, routing it eastward to the port of Nacala through Malawi. This comprehensive endeavour involves the construction of new railway tracks and extensive refurbishment of existing lines, ensuring seamless connectivity and streamlined logistics operations throughout the region.
The aim of developing the Nacala Railway Corridor Project is for the transportation of approximately 18 million tons of coal from the expansion of the Moatize Mine in Mozambique to Nacala. The railway system connects the existing mine in Moatize, via Malawi, to a new coal terminal in Nacala-a-Velha in Mozambique.
By: Chamwe Kaira