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The government of President Lazarus Chakwera has made a notable achievement in the railway sector with the resumption of fuel shipments from Mozambique to Malawi, marking the resumption of railway services after a 21-year hiatus.
The first train loaded with fuel arrived at Malawi’s National Petroleum Corporation’s depot in Lilongwe on Tuesday afternoon, delighting a country that has suffered from fuel prices for years due to high transportation costs.
Trade Minister Sosten Gwengwe, beaming with joy, led a group of public and private sector officials to welcome the train carrying about 640,000 litres of crude oil.
“Today I want to pay tribute to an unsung hero, President Chakwera. He promised to reform the railway sector and now it has finally happened,” he said.
NOCMA chief executive officer Clement Kanyama said the resumption of the service would improve efficiency in fuel transportation in the country.
The train, operated by the Middle East African Railway Company/Nacala Logistics Company, runs from Nacala, Mozambique to Lilongwe, a distance of 988 kilometers.
During the rule of Bakili Muluzi and his United Democratic Front (UDF) government, the service was stopped due to damaged infrastructure and lack of political will.
All other governments had previously failed to restore the service until Chakwera promised to restore the country’s railway system.
Mrs. Colleen Zamba, who is also the Chairperson of the Board, spoke when she welcomed the Fuel Minister on the train to the Office of the President and Cabinet (SPC), saying it was a historic development after 21 years of similar events.
“What this means for the country. You know, in Malawi, 21 years is not a short time. There are people who were born, went to school, even finished college, and never saw a train bringing fuel. So, I think this is historic for me,” Zamba said.
Zamba said this marked a true transformational agenda, the vision that President Dr. Lazarus McCarthy Chakwera has been articulating to create jobs, provide food and change the face of Malawi.
She said Malawi is a landlocked country and therefore, one of the most important things for a landlocked country is to have transportation that will enable its products to be competitive with those of other countries.
Speaking at the ceremony, the Minister of Energy, Ibrahim Matola, commended President Dr. Lazarus McCarthy Chakwera for translating his political will into reality.
Matola said these were the results of his visit to Mozambique shortly after taking office.
The minister said the development would help reduce fuel landing costs.
Experts hailed the move and said recent investments in the railway sector in Malawi had caused excitement among all sectors.
They believe that using rail to transport bulk and dry goods is a very positive move as it has proven to be the most cost-effective and efficient way to transport fuel worldwide. Here are the potential economic impacts of transporting fuel by rail:
1. Fuel transportation costs are expected to decrease by 40% overall. This could result in lower fuel prices at the pump.
2. Relieve pressure on road infrastructure. As a result, savings in road repair and maintenance will increase, as road damage will also decrease by reducing road traffic by trucks.
3. It improves the safety and stability of the country’s fuel supply as trains are less prone to breakdown.
4. Since railways are a labour intensive system, it increases employment opportunities in the railway sector.
5. Increase economic activity along the rail network by revitalizing railway stations.
6. Increase employment opportunities in related industries such as product distributors (including small-scale transporters), processors, warehousers, wholesalers and retailers, brokers, insurance, guarantees, etc.
7. In short, railway systems are great for job creation, industrialization and economic growth. Most developed countries first promoted economic growth by investing in railway networks.
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