Mozambique: state railway sells shares and earns USD106 million

(AGI) - Maputo, 2 ago. - The State Ports and Railways of Mozambique - CFM - earned USD106 million from the sale of shares held in the Integrated Logistics Corridor of Nacala - CLN -, northern Mozambique, the Minister of Transport and Communications, Carlos Mesquita, has announced. According to today's edition of the daily "Noticias" newspaper of Maputo, the minister said that the money raised from the sale of shares will allow to improve the company liquidity and enable the implementation of some of the projects that are in its portfolio. The shareholder restructuring of CLN aims to facilitate the logistics of the Moatize coal in the various segments of the chain, namely the flow of coal from Moatize mines, in central Mozambique to the coal terminals and general cargo in the port of Nacala, in the northern province of Nampula, and the rail passenger service. However, Carlos Mevquita, said that the deal made by CFM does not mean the definitive sale of its assets in the CLN. CFM owns all rail and port assets in the country, but has concessions programs with a period of validity as established by the law of Public and Private Partnerships. Vale Mozambique, a subsidiary of Brazilian mining giant Vale, is the major shareholder in CLN. Recently, the Government of Mozambique approved the sale of its stake in the Moatize coal mine, as well as the CLN as a way to balance the company's finances during the period of low commodity prices. Vale Mozambique incurred over USD100 million losses during the first semester of 2016. This operation brought to the project financing of around USD3 bilion, of which USD2 bilion are for the CNL. (AGI) .