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Mozambique Chronology, 01-31 December 1999, Compiled by SARDC Maputo Office

    As prospects of major changes in railway transport in the Southern African Development Community (SADC) increase, member states are facing a challenge that will test their will to put regional economic cooperation and integration ahead of national interests. A record number of newly completed or planned projects designed to improve the movement of rail transport are under way throughout the region.

    The recently completed 350kIn Beitbridge to Bulawayo line (BBR) in Zimbabwe has been hailed as the start of the southern African "railway revolution". And it highlights both the benefits and challenges of a number of new rail transport projects for the region.

    A Zimbabwean-registered consortium bankrolled the BBR under an agreement which will see the line ceded to the Zimbabwean government after 30 years. The consortium includes South Africa's NEDCOR Investment Bank, SANLAM, Genbel Securities Limited, Old Mutual and the Rand Merchant Bank, in partnership with the National Railways of Zimbabwe (NRZ).

    President Robert Mugabe commissioned the US$79million line, which cuts the distance from Beitdridge to Bulawayo by 200 kIn, in October last year.

    "Government will, in pursuance of its policy of engaging private investment, ensure that where feasible and necessary, similar arrangements are extended to other types of infrastructure such as roads, domestic airports, water provision and sewerage reticulation."

    Chairman ofBBR, Zion Elani, said the ideas for the BBR was fIrSt conceptualised more than 30 years ago but it was continuously shelved due to financial costs but eventually proceeded under a new fInancing arrangement known in railway construction parlance as BOT --build, operate and transfer projects. Other investors are avidly seeking similar projects.

    Apart from boosting Bulawayo's image as a major investment hub, the line cuts costs for importers and exporters through reduced transit and turn-around times for inbound and outbound locomotives and wagons.

    As one of southern Africa's landlocked countries, Zimbabwe must take advantage of self-flnancing investment at a time of regional competition for foreign investment, Mugabe said, adding that the railway line would foster regional integration and trade, especially for South Africa.

   But not everyone agrees. Botswana opposed to the development because cargo traffic is diverted from its railway lines leading to loss of revenue. Presidents Mugabe and Festus Mogae of Botswana, last year unsuccessfully tried to solve the differences arising from the use of the BBR. The issue has now been referred to the respective ministries of the two countries to find an amicable solution.

   However, this has created even bigger problems. Botswana has now withdrawn its passenger train service from Gaborone to Bulawayo, emphasising that passenger service alone is too costly to run without the lucrative cargo services. Southern African News Features 28 Janua,:

   Meanwhile, the Southern African Railway Association (SARA) says South African and ~ have agreed to fewasibbility study for construction of a railway line from South Africa to Mc through Zimbabwe.

    The Zimbabwean government is also seeking investors to construct a new railway link betw Den north of Harare and Kafue in northern Zambia. The line will shorten the distance and ti for cargo between the Democratic Republic of Congo (DRC), Mozambique, Zambia and 2 Cwrently, goods from Harare and the Mozambique port city of Beira are routed through and Victoria Falls, travelling close to a thousand kilometres instead of the much reducl through Kafue.

    The Kafue link would also reduce the transit period to the DRC's third largest city, Lubu three days from seven, making it attractive for the NRZ to lure more business into DRC. The route will divert freight that was expected to transit via Botswana and South Africa tc Corridor. Threatened by this anticipated dev~lopment, South Africa, like Botswana, wi passenger service to Zimbabwe, citing the loss of the lucrative cargo service that will be takl the Kafue route which will bypass the two countries.

    Further complicating the regional transport scene, the Chirundu Corridor running from. ..to . retain its position as the most cost-effective route from Zambia and the DRC to all easten ports south of Beira through to Cape Town. But both the BBR and Botswana Railways (BR) would lose significant traffic should the K materialise.

    The Kafue link will also enhance the development of the Beira Corridor and make it art Zimbabwe' s northern neighbours to use Beira as a major port for their imports and exports, , benefit Mozambique and Zimbabwe.

    A number of other railway developments are also being studied in Botswana, Mozambique and Tanzania.

    Botswana is seeking investors to build a more direct railway link to Zambia, effectively CirCl cargo moving through Zimbabwe. Presently, the BR operates a railway link from Francistc Pan. The plan is to extend this link to Zambia through the Chobe Game Reserve to provi direct route for cargo from the DRC and Zambia. This will be 150km shorter than Zimbab link.