Railways gear up to transport coal in Mozambique

NEW DELHI: Railways for the first time will be extending its expertise in coal transportation in foreign shores. RICON, a joint venture by IRCON and RITES, has been given a 25 year concession to rehabilitate, operate and upgrade 850 km long rail line in Central Mozambique including Beira Port to carry 12 million tons of coal annually at an estimated cost of about USD 440 million.

IRCON and RITES are two leading PSUs of Indian Railways. While the upgradation of the rail line, required to sustain the coal movement, is to cost about USD 260 million, while the rehabilitation and operation of the line will cost USD 180 million.

"This is a first concession awarded to an Indian consortium for coal transportation in a foreign country," a senior Railway Ministry official said.

The southeastern African country of Mozambique has one of the largest coal reserves in the world. Indian companies including Coal India, SAIL are keen to bag the mining rights in Mozambique. However, currently a Brazilian company has been given the mining rights.

There will be a high-level meeting at Railway Board on September 15 to decide the issue relating to the coal mining rights and upgradation of railway network in Mozambique.

The meeting is to be attended by senior officials from Ministry of External Affairs, IRCON, RITES, Coal India and SAIL among others.