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| Business |
| Nacala fuel deal in limbo |
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by
Frank Phiri, 09 June 2006
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06:16:49
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The proposed resumption of fuel imports by rail through the Mozambican deep sea port of Nacala is in limbo due to lack of locomotives by the Central East African Railways (Cear), it has been learnt.
Cear was banking on four locomotives which Taiwan donated to the Malawi Government last year.
But it emerged this week that the locomotives cannot be shipped into the country until Cear—which was entrusted by government to run them—sends engineers to Taiwan to change their braking system from air to vacuum.
The development is likely to jeopardise the signing of a deal between Cear and the Petroleum Importers Limited (PIL) to allow the rail company resume the imports two years after they were suspended due to port safety concerns, among other factors.
PIL General Manager Robert Mdeza said in an interview the fuel importing cartel was through with its paper work and that the ball was now in Cear’s court.
“We sent them [Cear] a draft agreement and we’re just waiting for their response. The deal will depend on availability of locomotives and completion of repairs to the port at Nacala,” he said.
Mdeza said engineers from British Petroleum (BP) Southern Africa have been rehabilitating the port and that PIL was waiting to see their report.
Cear spokesman Daniel Undani admitted in a separate interview the imports deal was likely to face problems because of delays to bring the locomotives.
“Our current locomotive capacity is not that good and we’re constrained. Our fleet is not adequate and we need to wait for [those from] Taiwan,” he said.
In April, PIL told The Nation it wanted fuel imports to start flowing into the country from Nacala this month.
The resumption of the imports through Nacala was expected to reduce the landing cost of fuel in the country as rail transport is considered cheaper and shorter as compared to road transportation.
Following the suspension of the rail imports in September 2004, all fuel imports to Malawi are coming by road from Beira in Mozambique and Dar-es-Salaam in Tanzania.
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