CROSS BORDER RAILWAY AGREEMENT SIGNED

16 January 2002

Maputo Port Development Company (MPDC) welcomes the historic signing of the Memorandum of Understanding between Spoornet and CFM for the Concession to operate the railway between South Africa and the ports of Maputo and Matola in Mozambique.

Following successful conclusion of the rail negotiations between the South African Consortium and CFM, MPDC expects to take-over a Concession to manage and rehabilitate the port of Maputo.

With the Port and Rail Concessions in place regional industries operating in and around the Maputo Corridor will be greatly enhanced, and significant commercial and trading benefits will flow from the development of the new seamless transport system connecting the markets of southern Africa to the Indian Ocean.

MPDC is an international consortium backed by Mersey Docks & Harbour Company (UK), the owner and operator of Britain’s second largest port group, Skanska (Sweden), one of the world’s leading construction companies and Liscont the Portuguese port operator with long standing relationships in Mozambique. CFM and other local investors will be 49% stakeholders in MPDC.

MPDC’s initial 3-year rehabilitation programme involves the investment of approximately US$61m.

Priority investments will include new harbour tugs, new cranes and other cargo handling equipment. In terms of civil construction and rehabilitation the immediate priorities are dredging of the harbour, improvement of the drainage, road and rail networks, wharves and warehouses. A new entrance and link road connecting the port direct to the South African road system via the new N4 Highway also forms part of the development project.

MPDC will work in partnership with importers, exporters, industrialists and investors to promote the regional benefits of Maputo Port and the new seamless rail link.

When the Concessions are finalised, international traders will gain significant operational and commercial benefits from the improved transport systems and port efficiencies. This will generate substantial investment throughout the region by associated industries wishing to take advantage of the strengthened transport links, leading to economic growth for both.

For more information contact:

Emmy Bosten
Communications Manager
info@portmaputo.com