India Technical and Economic Service (RITES), consolidated a deal worth 37.6 million dollars for the supply of ten diesel-electric locomotives to CFM. The decision was announced in a statement to the Indian stock exchange, in which RITES said that its bid was chosen due to its lower value, effective November 16. CFM notified all bidders of the contract award.
RITES also took part in the tender for the supply of 300 wagons to CFM. However, the Mozambican company opted for another competitor, without detailing the reasons for this choice.
Rail transportation in Mozambique has experienced remarkable growth in 2022, with more than 5.5 million people using the services. This represents a significant expansion of 81% over the previous year, driven in part by the relaxation of measures to prevent the COVID-19 pandemic. Substantial investments made in 2021 contributed to strengthening transport capacity in the south and center of the country.
According to CFM’s accounts report, the Mozambican rail network transported 24.6 million gross tons of cargo in 2022, representing a notable increase of 30% compared to the previous year. The port terminals under CFM’s management handled 13.21 million tons during the same period, indicating a growth of 6% compared to 2021. This increase is attributed to the new investments made by the company.
Despite the challenges faced in the first months of 2022, such as cyclones, incidents of rail derailments, moderate supply of rail cargo and the conflict between Russia and Ukraine, CFM’s management underlines its commitment to robust investments. The company claims to have invested 7.9 billion meticais in rail and port projects to revitalize and renew its assets, thus strengthening its position in the sector.
This partnership between RITES and CFM not only boosts Mozambique’s transportation infrastructure, but also highlights the importance of international collaborations to strengthen rail and port networks, promoting economic growth and global connectivity.
