An international consortium led by NLPI, (New Limpopo Bridge Project Investments), together with Spoornet and CFM, the national rail operators of South Africa and Mozambique respectively, have signed a 15-year Concession Agreement to privatise the railway from the South African border through to the ports of Maputo and Matola.

The new Ressano Garcia Railway Company will invest approx US$10 million to rehabilitate the railway line, modernising and improving it to the same standard as the South African network and providing a seamless rail link along the Maputo Corridor.

The company has projected that freight traffic will increase from 2.9m tonne per annum to more than 6.8m, and feasibility studies for electrifying the line will be carried out if justified by future volumes. The company’s interim management team is already in place and the concession is expected to become fully operational during July-August 2003. Maputo and Matola are also served by cross-border rail services to and from Swaziland and Zimbabwe.