The majority shareholders of Thai Moçambique Logística (TML) will abandon the project to build a railroad linking Chitima, in Tete, and Macuse, in Zambezia, where a deep water port will also be installed.

Thai Moçambique Logística (TML) is a public-private consortium of Italian-Thai and Mozambican capital, valued at over $2.7 billion. The Italian-Thai Development Corporation Limited 'ITD' owns 60% of the project and Caminhos de Ferro de Moçambique (CFM) and Corredor de Desenvolvimento da Zambézia (CODIZA) each own 20%.

The project has been delayed for more than six years, as it was supposed to start in the first quarter of 2016. ITD has been in negotiations with Indian investors interested in the project for two years, as they also have an interest in coal from Tete.

"The Thais no longer want to continue with the project and we have this conviction. The problem lies in the amounts to be discussed: how much can the Indians pay the Thais," said Abdul Carimo of CODIZA, quoted by STV.

Carimo said there is an agreement between the parties to conduct an audit in order to ascertain a fair value for the transaction. "The financing process is still in negotiations and nothing is closed regarding the entire Chitima-Macuse corridor."