Vale announces construction of new railway line in Malawi

11 December 2012

Vale SA, a Brazil-based mining company, has announced the start of construction of about 139km rail spur, as part of the $4.4 billion Nacala Corridor project in Malawi.

The Nacala Corridor project will bring a new railway and port infrastructure connecting the Moatize site to the Nacala-à-Velha maritime terminal located in Nacala, Mozambique.

The project involves rehabilitation of 99km of an existing railway, as well as, the construction of 45 rail bridges and three road bridges in Malawi. The 139km new rail spur begins in Moatize, crossing Malawi's border in the Chikwawa region and subsequently proceeding Northeast until the Nkaya junction area where it connects with the existing railway.

The 99km stretch will be rehabilitated until Nayuchi/Entrelagos, under the concession of the Central East Africa Railways CEAR. The works for the Nacala Corridor in Malawi is expected to be completed in 2014.The project is expected to create more than 3,500 new positions to be filled by local workmanship at the peak of activities.

In the first quarter of 2012, Vale signed with the government of Malawi the railroad Concession Contract for the construction and operation of part of the Nacala Corridor, covering the railway between the border of Mozambique and Malawi.