In a move designed to renovate its rail system for transport of growing future coal supplies for export, Mozambican state rail and port company Portos e Caminhos de Ferro de Moçambique has officially resumed management of the rail system in central Mozambique.

According to the Mozambique press, this move follows the revoking of the contract with Indian consortium IRCON.

The system includes the Machipanda line, which provides a link with neighboring Zimbabwe, and the Sena line, which runs between the province of Tete and the port of Beira, in Sofala province. This had been under concession to the Companhia dos Caminhos de Ferro da Beira consortium, led by Indian consortium Ricon, made up of state companies Rites Limited and Ircon International.

Mr Paulo Zucula, Mozambique's transport and communications minister, said that the consortium, which was partnered by Portos e Caminhos de Ferro de Moçambique, had failed to meet many of its contractual obligations and had not finished work within agreed deadlines, as well as not even having touched the Machipanda line.

According to the minister, for these reasons, in December 2010, the government started the process of dissolving the contract, which was formally concluded, this week and a government commission is currently in Beira to receive the rail system back again.

Mr Zucula said that "Once this process is completed, the government will start refurbishment of the Machipanda line and it will improve the capacity of the Sena line."

(Sourced from www.miningreview.com)