Central East African Railways Company
Exited | 12-Sep-2008
Maize, containers, fuels, fertilizer, cement, tobacco, sugar
In May 1999, a consortium led by RDC was awarded the concession for Malawi's railway, a network extending from the Zambian border in the West to connections with Mozambique's Nacala Corridor to the East and Mozambique's Beira corridor to the South (the Beira corridor has been closed since the mid 1980's as a result of Mozambique's civil war). Principal markets served are the capital city of Lilongwe and the main economic center of Blantyre.
The consortium Corredor de Desenvolvimento do Norte ("CDN") included RDC, ERL (Bermuda), MANICA (Mozambique), Mozambican private investors and CFM (Mozambique's Port and Railway Administration).
CDN formed the concessionaire company Central East African Railways ("CEAR") and began operations on December 1, 1999.
With the final concessioning of Mozambique's Nacala Port and Railway to the same consortium in January 2005, commercial and operational integration of the corridor will provide a more efficient and competitive outlet for landlocked Malawi.
On September 12, 2008 RDC and ERL sold their interests in CDN to Mozambican investor group INSITEC. Now the Nacala Corridor which includes CEAR will be managed and operated entirely by Mozambican investors.