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Modernization and capacity increase of the Maputo-Ressano Garcia railway
Project
This project is carried out with the support of the European Union
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Project start date
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Status
Ongoing
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Project end date
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Project duration
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5 years
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AFD financing amount
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US$ 163 400 000
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Country and region
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Location
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Maputo-Ressano Garcia
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Type of financing
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Beneficiaries
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Portos e Caminhos de Ferro de Moçambique (CFM)
This project is carried out with the support of the European Union
The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.
The project involves modernizing and increasing the capacity of the Maputo - Ressano Garcia rail line. Thanks to the modal shift from road to rail enabled by the line's increased capacity, the project will reduce GHG emissions by an average of 30,000 tCO2eq/year.
Context
Mozambique is seeking to become a key logistics hub and contribute to the economic integration of SADC, the Southern African Development Community, thanks to its strategic geographical position. The country has three main ports (Maputo, Beira, Nacala) connected to neighboring countries by dedicated freight rail lines managed by the state-owned company CFM, Caminhos de Ferro de Moçambique. The Ressano Garcia rail line (88 km) links Maputo, the country's capital, to the South African border. The line mainly transports ores (magnetite, coal, and chromium/ferrochrome).
Faced with the expected increase in freight traffic on this line, CFM launched an investment program, including the doubling of the track.
Since July 2024, the line between the cities of Matola and Secongene has been doubled (42 km), and the remaining section (Secongene - Ressano Garcia) is also due to be doubled. CFM intends also to modernize its network to reduce accidents (around 30 a year), notably by replacing the signaling system on the line between the cities of Maputo and Ressano Garcia.
Description
CFM has applied for financing from AFD, Agence française de développement, and the European Union for this project, which is part of the company's current investment program. The project consists of (i) doubling the track on the last single-track section (Movene - Ressano Garcia, 17 km), (ii) extending the track yard near the Ressano Garcia dry port, in particular by lengthening 5 tracks (1,600 m), and (iii) modernizing the signaling system on the Maputo - Ressano Garcia line (88 km). The project also includes the development of all necessary detailed studies (technical, environmental and social) and a project management technical support to the CFM teams, as well as long-term capacity building, especially for the Environmental & Social team.
The financing plan includes: a €30 million grant from the European Union ; Two non-sovereign loans from AFD to CFM for a total of 133.4 MUSD.
Impacts
The project's aim is twofold: (i) to contribute to Mozambique's economic development and regional integration, by supporting CFM, a profitable and financially autonomous public company, in its development and the sustainability of its revenues, and (ii) to contribute to the decarbonization of the Mozambican economy and the reduction of the negative externalities of road transport (greenhouse gases, air pollution, accidents, congestion). The project is therebycontributing to the implementation the Energy Transition Strategy presented during the COP 28 by the country, whose fourth pillar is the decarbonization of the transport sector.
The project has three specific objectives:
- Sustain CFM's activities by increasing rail capacity (5 million passengers/year) and freight volumes (17,889/year) by 2030.
- Reduce greenhouse gas emissions by 30,000 tCO2eq/year and other negative externalities of road transport on the Ressano Garcia corridor, through modal shift from road to rail.
- Reduce the number of accidents on the Ressano Garcia line by minimizing the risk of human error thanks to a modern signalling system.