16 January 2001
Master of Ceremonies, Distinguished guests, Ladies and Gentlemen
It is a pleasure to be here today in one of Southern Africa’s most beautiful cities, Maputo. Our gathering represents yet another important extension of the excellent relations between Mozambique and South Africa. Today, the CFM and Spoornet conclude an agreement that has major development implications for our region as a whole.
The successful operation of critical infrastructure such as railway lines is central to the ongoing development of Africa. Southern Africa is no different in its needs to the rest of the continent, and it is therefore important that we use whatever methods we can to engage business enterprises in joint efforts with governments.
This is necessary to extract as much value from scarce state resources as possible. It is interesting to note that the governments of both Mozambique and South Africa have agreed that in particular instances, restructuring initiatives can include the concessioning of the infrastructure network. Today’s agreement is additionally interesting because it involves the successful bid of a South African state enterprise in partnership with a Mozambican state entity. The decision to concession the railway line between Ressano Garcia and Maputo was welcomed by the South African government, hence Spoornet’s bid.
The Mozambican coast and the South African hinterland share a common history, and the railway line itself has a particular place in that history. Today, the successful upgrading and further development of the rail link is critical to the economic plans of both countries. Just as energy, water, road and air transport links play an important role in our region, rail operations ferry tones and tones of freight, cargo and passengers between our countries. From our perspective, Spoornet’s major concern is to grow effective and efficient rail operations in Southern Africa.
Spoornet is part of the (SARA), Southern African Railway Association’s ten-railway network, and has been extensively involved in the development and implementation of information technology, both systems and satellite infrastructure for the region over the last number of years.
Concessioning of this line could not have come at a better time. In addition to the fees that Spoornet consortium will be paying, it will also invest in rehabilitating the railway line to ensure uniformity of standards.
This process was also viewed as a positive move that will enhance export capability. Efficient use of time will translate to traffic increase, and further economic gains.
Let me on behalf of the South African Government take this opportunity to commend the parties that were involved in the deal negotiations. These include the Spoornet Consortium and their Consortium partner- New Limpopo Bridge Projects Investments, the CFM delegation headed by the Executive Chairman, Engineer Rui Fonseca.
Believe me when I say negotiating concessioning deals is not easy, especially when it comes to monetary value of the assets. It takes commitment, determination and hard work.
It has been a long process to reach today, and one that revealed a number of important issues that required close and careful assessment by both governments. For the successful outcome, let me express my gratitude to all concerned.
What still lies ahead is the negotiation phase where Spoornet Consortium and the CFM will agree on the take over date and the start of the 15-year concession. With the success of today’s agreement I am sure that both parties will succeed and bring our two countries even closer together.
Thank you