Mota-Engil clinches Malawi railway deal

Dominant Portuguese engineering company, Mota-Engil has managed to grab a 145 kilometre railway construction deal worth $703 million in Malawi.

Vale Mining of Brazil is the one that has offered the contract to the Portuguese who have crowded Malawi’s construction industry.

A statement by Mota-Engil to Portuguese Securities Market Commission said the railway would be through in 27 months.

Mota to complete railways tracks in 27 months

Malawi Government and Vale signed a $1 billion (K168 billion) deal for the construction and rehabilitation of the railway that will transport 18 million tonnes of coal from Mozambique, hiring about 5,000 workers 70 percent being Malawians.

The 145 kilometre railway is part of the Nacala Corridor, a facility for transporting mining products from the Moatize Coal Mine in Mozambique which is operated by Vale.

Vale Logistics, a subsidiary of mining giant Vale, will build a new line from Chikhwawa in the South to meet an existing line in Balaka, rehabilitate the 98.6 kilometre  of the existing link between Nkaya and Nayuchi.

This would in turn lead to a 24 hour delivery of cargo to either Nacala or Limbe and an annual goods tonnage of over 5 million tonnes.

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