The Corredor De Desenvolvimento Do Norte (CDN), comprising Mozambique’s northern rail network, Malawi’s rail system, and the Port of Nacala, has signed a 5-year, ZAR 120 million ($7.7 million) deal to lease 100 grain wagons from GPR Leasing, a joint venture between South African logistics firm Grindrod, and the Pembani Remgro Infrastructure Fund (PRIF).
The deal is underwritten by CDN’s existing deal to transport grain for the Malawian arm of Bakhresa Milling Group, which provides grain and flour across east and southern Africa. Bakhresa Malawi owns a grain terminal in Nacala and a milling and packing facility in Malawi.
Bakhresa’s main port logistics operation is at Dar Es Salaam where it has a 10,000m2 yard and an inland container terminal. Nacala is hoping that the expansion of its facilities will mean it can take some Malawian business from Dar Es Salaam, which is much further from southern Malawi.
GPR’s Willem Goosen said the deal is his company’s first innovative wagon lease in Africa. He said the freight wagon lease pipeline is substantial, so “many additional deals all over Africa will follow shortly”. The company is also exploring further opportunities with CDN, he said.
The wagons will be manufactured by and purchased from Galison Manufacturing from Welkom in South Africa. The deal was signed in October 2015, and an internal Grindrod communication in December last year said the deal was worth ZAR 120 million.
Nacala port tender closes tomorrow
Meanwhile, a tender for a firm to lead the second phase of the Nacala port expansion will close tomorrow, having been extended by two weeks from the original deadline of 19 February.
The Phase 2 project is, like Phase 1, funded by Japanese development finance agency JICA. However, this phase is open to bidders from around the world, whereas Phase 1 was only for Japanese bidders.
The $238 million project is expected by industry sources to be the biggest project in dollar terms that Mozambique will undertake in 2016, especially given the more stringent conditions placed on government spending by the IMF in its latest agreement with the country.
The work will include building a new container wharf and yard, an accompanying by-pass road, and a rail container terminal at the port, which lies roughly half way between Tanzania’s Dar Es Salaam, and the central Mozambican port of Beira. Nacala is currently Mozambique’s third busiest port after Beira and the capital, Maputo, according to JICA.
source: zita news
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