Limbe-Nkaya rail rehab launched
Minister of Transport and Public Infrastructure Mohammad Sidik Mia on Wednesday launched the rehabilitation works for the 98-kilometre Nkaya-Limbe railway line.
Speaking at the launch, Mia said rehabilitation of the railway section will complement the public-private partnership (PPP) approach being championed by government and will go a long way in realising the aspirations of Malawians as espoused in the Malawi Growth and Development Strategy II (MDGS 2) which prioritises transport and infrastructure development.
Said Mia: “Transport being a catalyst for economic development will impact very positively on poverty reduction and improvement of people’s livelihoods.”
According to Mia, Malawi will save $120 million (about K49.8 billion) per year. He said transport costs will also be cut by 60 percent once the railway line is fully operational.
Added Mia: “Apart from improving Cear’s [Central East African Railways] efficiency and market share in the region, Malawi will be saving $120 million through this ambitious project.”
The minister also announced that government is reviewing the Railways Act to create a conducive environment for operations.
In his presentation, Cear Workers Union president Luther Mambala appealed to the public to avoid vandalising and encroaching on railway property for sustainability of the project.
The Nkaya-Limbe railway rehabilitation, solely funded by Cear, is part of the 810-km project and is expected to be completed by March 2015.
The concession for the management and operation of Malawi Railways was awarded to Cear by the government through the Public Private Partnership Commission (PPPC), formerly the Privatisation Commission, in December 1999 for initial 20 years.
However, the Malawi Government recently revised and extended the period to 2045 to promote efficiency and encourage private sector participation in the management and operations of rail transport in the country.
