The National Oil Company of Malawi announces the beginning, soon, of fuel import through the Nacala Railway Corridor. The initiative aims to alleviate the cost-effectiveness of road transport from the ports of Beira in Mozambique, Durban in South Africa and Dar Es Salaam in Tanzania.
According to information advanced by Radio Mozambique, the largest strategic fuel reserve of Kanengo, in Lilongwe is already connected to the railway network of Nacala, north of Mozambique, and conclusion works of the Mchinji - Salima section are at 92% execution to connect the fuel reserve of Blantyre, the largest commercial center in Malawi.
The Executive Vice President of the National Oil Company of Malawi, Hellen Buluma, said that after the completion of the work, Malawi will become one of the largest users of the port of Nacala for fuel imports.
Hellen Buluma explained that currently the Beira, Durban, and Dar es Salaam road corridors have incurred high costs to Malawi due to limited truck capacity.
Malawi is currently paying $10 per ton against $7, the average price set in the SADC region.
It is about two thousand and three hundred kilometers, the distance that separates the city of Blantyre from Durban in South Africa as well as Dar es Salaam in Tanzania, against nine hundred and sixty kilometers from the port of Nacala.
Given Malawi's economic weaknesses, The Port of Nacala is seen as an alternative to alleviate fuel prices to the detriment of Durban and Dar es Salaam.
About 17% of the exports and imports of containerized cargo and 13% of bulk cargo transiting through the Port of Beira, belongs to Malawi. Currently, the Port of Nacala handles 7% of the weight of containerized and bulk cargo.