US funds Nacala corridor upgrade

US Secretary of State Colin Powell observed the signing of a memorandum of understanding on Friday between the governments of Mozambique, Malawi, and Zambia for the rehabilitation of the port and rail facilities of the Nacala transport corridor. The US Overseas Private Investment Corporation will provide nearly US $30 million in financing to rehabilitate the port and rail facilities of the corridor. The rail line runs from the deep-water port of Nacala on the Indian Ocean in northern Mozambique, through landlocked Malawi, and on to eastern Zambia. "This will be the first integrated port and rail operation to be operated by the same concession in Africa, and represents a new era for US investment in Africa. The efficient operation of the Nacala line will have a substantial multiplier effect as transportation costs and times will fall, encouraging investment in diverse areas, such as agriculture and mining, to the three countries," a statement from the US Corporate Council on Africa said. The official Mozambique news agency, AIM, reported that the US is particularly interested in the Nacala corridor because two US companies, Edlow Resources and the American Railroad Corporation, are members of CDN, the consortium that won the tender to manage the line. Former Mozambican defence minister Alberto Chipande is chairman of the CDN board.