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FINANCING
THE NACALA CORRIDOR:
First Private Sector Integration of Port and Rail
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SPEECH
DIRECTORY:
Background on RDC
Investment Parameters
Case Study: Financing the Nacala Corridor
Structural Trends in African Privatizations
Case Study: Financing Ferrovias Guatemala
Structural Trends in Central America
Conclusions
Nacala Corridor Inspection Trip
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Nacala
Corridor Inspection Trip (continued)
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Photo
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Photo
21
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Photo 20 and Photo
21…Moving on to Malawi, here is the Rivi Rivi Bridge
project. This is basically a prefabricated bridge that arrived
in containers and is being assembled on site. This is a very
interesting construction technique that reminds me of the
Erector Set I had when I was kid. This is a very effective
solution. |
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Graph
A is most interesting. It is easy to talk in generalities, but one of
the things that you can’t fudge is the operational results of the
railway. This graph shows two things. The top portion shows the tons
moved month by month while the bottom portion shows locomotive
availability. Notice that we start with 4 locomotives of which 1 is for
the passenger train which means we really have 3. Then we go down from 4
locomotives to 3, meaning 2 for freight service and 1 for passenger.
When I say 2 for freight service, that includes shunting. Despite this,
look at what we have achieved traffic-wise in the top portion. Our
management team has been very effective in terms of utilization. Once we
get our locomotive problems solved with a combination of solutions from
leased locomotives to rebuilt locomotives, then this business will go
according to the original business plan.
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Graph A
Nacala Corridor -
Mozambique only
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Tons: |
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Locomotives available: |
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 Let
me close by borrowing a Mozambique phrase, “A luta continua!”
(English translation: “The struggle continues!”) This is a struggle
and I have tried to not pull any punches in terms of how difficult it
has been. The important thing is that there are a lot of committed
parties bringing various skills to the table. We’re going to make this
work for the simple reason that we’ve committed to making this work.
It would be helpful if there were more financing available, but even if
there isn’t more financing, we’ve gotten this far based on our own
resources and resources that we’ve been able to grab and whittle from
other organizations. Everyone is committed; our reputations are on the
line; and we want this to be a model for Africa because the Nacala
Corridor is as good as any an example of why concessioning works.
Thank you.
[END]
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