Project Description
The project is owned by the Government of Malawi. The main objective of the project is to reconnect Malawi’s railway line to the Port of Beira through the rehabilitation and reconstruction of the railway infrastructure from Sandama to Marka.
Benefits of the project
It will be cheaper and faster to transport cargo through rail than road. The lower cost and higher speed can result in a transfer of 50% of cargo from road to rail.
Location
The project will stretch from Blantyre to Nsanje. The area is an agriculturally rich land and the introduction of passenger services will open up the area for the production of cash crops. Additionally, Illovo can take advantage of the railway line for the transportation of sugar for export and importation of fertilizer, lime and machinery
Benefits of the Project
The project will lead to the reduction in time travel of cargo between Limbe and Beira and consequently reducing costs. The reintroduction of passenger services along the section will provide access to markets and social amenities to the surrounding communities. Other benefits include: vehicle operating cost saving, fuel consumption saving and reduction in carbon emissions. The project will boost country's trade through exportation of agricultural produce and other commodities to regional and international markets
Estimated capital costs of Project
The project is owned by the Government of Malawi. The main objective of the project is to reconnect Malawi’s railway line to the Port of Beira through the rehabilitation and reconstruction of the railway infrastructure from Sandama to Marka.
Benefits of the project
It will be cheaper and faster to transport cargo through rail than road. The lower cost and higher speed can result in a transfer of 50% of cargo from road to rail.
Location
The project will stretch from Blantyre to Nsanje. The area is an agriculturally rich land and the introduction of passenger services will open up the area for the production of cash crops. Additionally, Illovo can take advantage of the railway line for the transportation of sugar for export and importation of fertilizer, lime and machinery
Benefits of the Project
The project will lead to the reduction in time travel of cargo between Limbe and Beira and consequently reducing costs. The reintroduction of passenger services along the section will provide access to markets and social amenities to the surrounding communities. Other benefits include: vehicle operating cost saving, fuel consumption saving and reduction in carbon emissions. The project will boost country's trade through exportation of agricultural produce and other commodities to regional and international markets
Estimated capital costs of Project
US$400 million
Proposed Investment Model
Government intends to use private sector financing for the project with repayment coming from revenues from concession fees and other track usage charges. The contractor will manage the day-to-day operations of the project under the supervision of the concessionaire and other relevant government institutions.
Project feasibility
Feasibility study and designs were done. An environmental impact assessment was conducted but is yet to be approved by EAD
Financial Feasibility
Net Present Value US$432.5 million
The latest study finds an Internal Rate of Return (IRR) of 6.60% which is above the standard threshold of 3% meaning the project is financially viable
Proposed Investment Model
Government intends to use private sector financing for the project with repayment coming from revenues from concession fees and other track usage charges. The contractor will manage the day-to-day operations of the project under the supervision of the concessionaire and other relevant government institutions.
Project feasibility
Feasibility study and designs were done. An environmental impact assessment was conducted but is yet to be approved by EAD
Financial Feasibility
Net Present Value US$432.5 million
The latest study finds an Internal Rate of Return (IRR) of 6.60% which is above the standard threshold of 3% meaning the project is financially viable