MILLENNIUM

CHALLENGE
CORPORATION:
MALAWI COMPACT
PROGRAM
DEVELOPMENT
(2011 2016)
PROJECT CONCEPT PAPER FOR THE
TRANSPORT SECTOR:
PROMOTING ECONOMIC GROWTH AND
POVERTY REDUCTION THROUGH ADDRESSING
TRANSPORT INFRASTRUCTURE CONSTRAINTS IN
MALAWI

Millennium Challenge Account -Malawi Country Office

Secretariat
P. O. Box 31513
Lilongwe
Malawi

Table of Contents
LIST OF FIGURES........................................................................................................................................................... iv
LIST OF TABLES.............................................................................................................................................................. v
LIST OF ANNEXES ......................................................................................................................................................... vi
ACRONYMS AND ABBREVIATIONS .............................................................................................................................. vii
UNITS OF MEASURE ................................................................................................................................................... viii
EXECUTIVE SUMMARY ................................................................................................................................................. ix
I.

PROJECT RATIONALE AND DESCRIPTION ............................................................................................................. 1

1.1
1.1.1
1.2

COUNTRY AND SECTOR ISSUES ................................................................................................................... 1

High Transportation Cost as a Constraint to Economic Growth in Malawi ........................................ 3
SUMMARY OF PROBLEMS FACED BY ROAD AND RAIL TRANSPORTATION IN MALAWI ............................. 5

1.2.1

Road Transportation Constraints ....................................................................................................... 5

1.2.2

Rail Transportation Constraints .......................................................................................................... 7

1.3

PROJECT RATIONALE ................................................................................................................................. 11

1.4

DESIRED LONG-TERM SECTOR OBJECTIVE ................................................................................................ 11

1.5

EXPECTED PROJECT OUTCOMES ............................................................................................................... 13

1.6

DESCRIPTION OF PROJECT OUTPUTS AND SPECIFIC ACTIVITIES ............................................................... 13

1.7

DETAILED PROJECT OUTPUTS .................................................................................................................... 14

1.7.1

Rehabilitation of the Rail Transportation Network .......................................................................... 14

1.7.2

Improving Rural Accessibility ............................................................................................................ 14

1.7.3

Improved Regulatory Environment and Enforcement of Regulations in the Transport Sector ....... 15

1.7.4
Improved Natural Resources Management of Catchment Areas around Transport Infrastructure
Facilities .......................................................................................................................................................... 16
1.8
II.

ESTIMATED COSTS ..................................................................................................................................... 18

PROJECT CONTEXT AND DEVELOPMENT PLANS ................................................................................................ 20

2.1

SECTOR DESCRIPTION ............................................................................................................................... 20

2.1.1

Role of the Transport Sector in the Overall Economy ...................................................................... 21

2.1.2

Role of Government and the Private Sector ..................................................................................... 21

2.1.3
Linkages of Concept Project to Economic Constraints Analysis, Sector Analysis and Public
Consultation Process .......................................................................................................................................... 22
2.2

GOVERNMENT STRATEGIES AND PLANS FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT................ 22

2.2.1

Road Transportation ......................................................................................................................... 22

2.2.2

Rail Transportation ........................................................................................................................... 23

2.2.3

Linkages of the Transport Sector Concept Project to other Concept Projects Submitted to MCC .. 23

2.2.4
2.3

III.

Reducing Environmental Damage .................................................................................................... 24

DESCRIPTION OF RECENT, ON-GOING OR EXPECTED INVESTMENTS IN THE SECTOR .............................. 25

2.3.1

Rehabilitation of the Nacala Corridor ............................................................................................... 25

2.3.2

Rehabilitation of the Sena Railway Line ........................................................................................... 25

INVENTORY OF EXISTING PREPARATORY WORK ................................................................................................ 26

3.1

SECTOR STUDIES AND/OR PLANS .............................................................................................................. 26

3.1.1

The Transport Sector Strategic Plan (Under Review) ....................................................................... 26

3.1.2

Road Sector Program (2006 -2011) .................................................................................................. 26

3.2

ECONOMIC STUDIES .................................................................................................................................. 27

3.2.1

Spatial Dimensions of Growth: Maximizing Impacts of Public Investments in Malawi .................... 27

3.2.2

Transport Cost Study ........................................................................................................................ 27

3.2.3

Feeder Roads Feasibility Study ......................................................................................................... 28

3.3

SUPPORTING TECHNICAL DATA ................................................................................................................ 28

3.3.1
3.4

IV.

HDM-4 Transport Database .............................................................................................................. 28

PRELIMINARY STUDIES .............................................................................................................................. 29

3.4.1

Malawi Transport and Road Sector Project Formation Study .......................................................... 29

3.4.2

Establishment and Implementation of Multi-Sector Regulatory Authorities: Draft Final Report .... 29

3.4.3

Design and Preparation of Tender Documents for the Chiromo Washaway Replacement Structure .
.......................................................................................................................................................... 30

3.4.4

Status of the Malawi Railways and Overall Reinvestment Scheme .................................................. 30

3.5

FULL FEASIBILITY STUDIES ......................................................................................................................... 30

3.6

DETAILED BUDGETS ................................................................................................................................... 30

3.7

ENVIRONMENTAL AND SOCIAL IMPACT ANALYSES .................................................................................. 31

3.8

RESETTLEMENT ACTION PLANS (RAPs): .................................................................................................... 31

3.9

GENDER ANALYSES: ................................................................................................................................... 31

3.10

PUBLIC CONSULTATIONS ........................................................................................................................... 31

3.11

PLANS FOR ADDITIONAL STUDIES TO DEVELOP CONCEPT PROJECT ......................................................... 32

3.11.1

Information Gaps .............................................................................................................................. 32

3.11.2

Catchment Study .............................................................................................................................. 33

PROJECT BENEFITS AND BENEFICIARIES ............................................................................................................ 34

4.1
4.1.1
4.2

KEY ASSUMPTIONS UNDERLYING ESTIMATES OF INCREMENTAL COSTS AND BENEFITS ......................... 34

Key Economic Analysis Assumptions for the Calculation of Incremental Economic Benefits .......... 34
ECONOMIC ANALYSIS RESULTS ................................................................................................................. 36

4.2.1

Economic Activities for Road Transport Projects ............................................................................. 36

4.2.2

Economic Activities for Rail Transport Projects ................................................................................ 37

4.2.3

Road and Rail Transportation Results .............................................................................................. 37

4.2.4

Transportation Impacts on the Environment ................................................................................... 38

ii

V.

VI.

4.3

POSSIBLE MONITORING INDICATORS FOR PROJECT OUTCOMES ............................................................. 38

4.4

DESCRIPTION OF TARGET BENEFICIARIES ................................................................................................. 39

4.5

ANTICIPATED CHANGES IN AVERAGE ANNUAL INCOME: POOR AND NON-POOR BENEFICIARIES ........... 39

ENVIRONMENTAL AND SOCIAL RISKS ................................................................................................................ 40

5.1

ENVIRONMENTAL IMPACT ASSESSMENT REGULATORY FRAMEWORK .................................................... 40

5.2

ENVIRONMENTAL AND SOCIAL IMPACTS FOR ROAD TRANSPORTATION ................................................. 40

5.2.1

Mzuzu-Nkhata Bay Road Rehabilitation ........................................................................................... 40

5.2.2

Linthipe-Lobi Rural Feeder Road Upgrading ..................................................................................... 41

5.2.3

Monkey Bay-Cape Maclear Rural Feeder Road ................................................................................ 41

5.2.4

Lirangwe - Chikwenga - Machinga Road ........................................................................................... 41

5.3

ENVIRONMENTAL AND SOCIAL IMPACTS FOR RAIL TRANSPORTATION ................................................... 41

5.4

WATERSHED MANAGEMENT .................................................................................................................... 42

5.5

HIV AND AIDS ............................................................................................................................................ 42

PROJECT SUSTAINABILITY .................................................................................................................................. 43

6.1

OPERATION AND MAINTENANCE FINANCIAL......................................................................................... 43

6.2

OPERATION AND MAINTENANCE INSTITUTIONAL ................................................................................. 43

6.3

TARIFF AND USER FEES .............................................................................................................................. 43

6.4

LEGAL AND REGULATORY ISSUES .............................................................................................................. 43

VII. IMPLEMENTATION ARRANGEMENTS ................................................................................................................. 45

7.1

PROPOSED IMPLEMENTATION ARRANGEMENTS ORGANISATIONAL CHART ........................................ 45

7.2

DESCRIPTION OF IMPLEMENTING ENTITIES .............................................................................................. 45

7.2.1

Ministry of Transport and Public Works (MTPW) ............................................................................. 45

7.2.2

Roads Authority (RA) ........................................................................................................................ 45

7.3

PAST EXPERIENCE FOR IMPLEMENTING SIMILAR PROJECTS .................................................................... 46

7.4

IMPLEMENTATION TIMELINE .................................................................................................................... 46

7.5

PLANS FOR LONGER TERM PROJECT ACTIVITIES ....................................................................................... 46

VIII. ANNEXES ............................................................................................................................................................ 47

BIBLIOGRAPHY ........................................................................................................................................................ 47

iii

LIST OF FIGURES
Figure 1: Malawi Transport Corridors .......................................................................................................... 2
Figure 2: Correlation between Rising Road Freight and Shipment Costs..................................................... 3
Figure 3: Malawi Rail Routes ........................................................................................................................ 8
Figure 4: Transport Program Logic ............................................................................................................. 12
Figure 5: Agronomic Potential, Cash Crop Areas and Road Network in Malawi ........................................ 20
Figure 6: Organizational chart for Ministry of Transport and Public Works .............................................. 59
Figure 7: Roads Authority Organizational Chart ......................................................................................... 60
Figure 8: Implementation Timeline for Road Transportation .................................................................... 61
Figure 9: Implementation Timeline for Rail Transportation....................................................................... 62
Figure 10: Implementation Timeline for Transport Regulator ................................................................... 63

iv

LIST OF TABLES
Table 1: Road Classification by Class ............................................................................................................ 6
Table 2: International Roughness Index for Malawis Road Network .......................................................... 6
Table 3: Road Maintenance Responsibilities by Institution ......................................................................... 7
Table 4: Total Traffic Moved by Rail since 1999 (Tons) and Rail Market Share ........................................... 8
Table 5: Road Classification by Class with Project Implementation ........................................................... 15
Table 6: Preliminary Cost Estimates for Priority Investments in the Transport Sector .............................. 19
Table 7: Calculated ENPV and EIRR for Road and Rail Transportation ....................................................... 38
Table 8: Summary of Environmental Impacts for Rail Transportation Networks ...................................... 38
Table 9: Transportation Costs for Dry Cargo .............................................................................................. 73
Table 10: Transportation Costs for Liquid Cargo ........................................................................................ 74
Table 11: Costs, Transit Times and Other Information before the Project ................................................ 75
Table 12: Costs, Transit Times and Other Information After Project Implementation .............................. 76

LIST OF ANNEXES
ANNEX 1: MALAWI EXPORTS AND IMPORTS WITH MAJOR BLOCS AND COUNTRIES (FORWARD FORECASTING) .... 48
ANNEX 2: MAPS SHOWING PROPOSED ROAD TRANSPORTATION SITES IN MALAWI ................................................ 50
ANNEX 3: DESCRIPTION OF RECENT, ON-GOING OR EXPECTED INVESTMENTS IN THE SECTOR................................ 54
Annex 4: TRANSPORT PROBLEM TREES ...................................................................................................................... 56
ANNEX 5: ORGANISATIONAL CHARTS ......................................................................................................................... 59
ANNEX 6: IMPLEMENTATION TIMELINES ................................................................................................................... 61
ANNEX 7: PROGRAM LOGIC FOR TRANSPORT PROJECT INTERVENTIONS (TO BE ADDED AFTER COMPLETION) ...... 64
ANNEX 8: CONDITION OF THE RAIL WAY LINE ............................................................................................................ 65
ANNEX 9: TRANSPORT COSTS AND OTHER RELATED INFORMATION ......................................................................... 73

vi

ACRONYMS AND ABBREVIATIONS

AHC

Asset Holding Company

CDN

Corredor de Desenvolvimento do Norte

CEAR

Central East African Railways

CBNRM

Community Based Natural Resource Management

COMESA

Common Market for Eastern and Southern Africa

DHRMD

Department of Human Resource Management and Development

EIRR

Economic Internal Rate of Return

ENPV

Economic Net Present Value

ESIA

Environmental and Social Impact Assessment

EU

European Union

GDP

Growth Domestic Product

HDM

Highway Development and Management

ICB

International Competitive Bidding

IDA

International Development Agency

IRI

International Roughness Index

JICA

Japanese International Development Agency

MCA

Millennium Challenge Account

MCC

Millennium Challenge Corporation

MCCL

Malawi Cargo Center Limited

MGDS

Malawi Growth and Development Strategy

NRM

Natural Resources Management

NPV

Net Present Value

MSR

Multi Sector Regulator

MTPW

Ministry of Transport and Public Works

NWDP II

National Water Development Project Phase 2

PPIAF

Public-Private Infrastructure Advisory Facility

RA

Roads Authority

RAP

Resettlement Action Plan

RSA

Republic of South Africa

RSP

Road Sector Program

SADC

Southern Africa Development Community

TAZARA

Tanzania and Zambia Railways

TransRA

Transport Regulatory Authority

TOC

Train Operating Costs

USA

United States of America

VOC

Vehicle Operating Costs

VOT

Value of Time

WB

World Bank
vii

UNITS OF MEASURE
eCO2

Emissions of Carbon Dioxide

Gram

km

Kilometer

MK

Malawi Kwacha

NOx

Nitrous Oxide

PM2.5

Particulate Matter > 2.5

US$

United States Dollar

viii

EXECUTIVE SUMMARY
The Millennium Challenge Corporation is a United States Government Corporation designed to assist
some of the poorest countries in the world address poverty through the promotion of sustainable
economic growth. Established in January 2004, the Millennium Challenge Corporation is based on the
principle that aid becomes more effective when it reinforces good governance, economic freedom and
investments in people. Based on these principles, a country becomes eligible for compact assistance if
evidence shows that each country passes all the three categories.
As for Malawi, Government passed on all three categories and became eligible for compact assistance
on 20th December 2007. The compact program is a five year agreement between the MCC and an
eligible country that funds specific projects targeted at reducing poverty and stimulating economic
growth. In a bid to facilitate this process, the Malawi Government through the Millennium Challenge
Account Malawi Country Office developed a compact agreement with the US Government which is
expected to be implemented from August 2011 to July 2016.
The projects being proposed under the USA Malawi Government Compact Agreement include the
following: Energy Generation and Supply; Transport Infrastructure Development; and Governance
projects. The process of selecting these projects was based on a growth diagnostic study that identifies
major constraints affecting each developing country. In Malawi, the study revealed that among all
themes analyzed, infrastructure still remains the major constraint affecting progress on reducing
poverty and attaining sustainable economic growth. Furthermore, the constraints were analyzed by
different stakeholders who identified the major problems affecting each constraint. In August 2008, the
Government of Malawi conducted consultative meetings with all major stakeholders in each sector to
identify the main problems that contributed to the exacerbation of each constraint identified. The
stakeholder consultations were further utilized to identify project concepts that would address the
problems in the selected sectors. The transport project concept paper has, thus, benefited from this
process and below is a summary of the major interventions that the transport concept paper will
address.
TRANSPORT PROJECT RATIONALE
High transportation costs are largely caused by inefficiencies of operations, inadequacy of infrastructure
and damage to transport infrastructure due poor construction and ineffective drainage systems. These
affect the smooth movement of goods and services in Malawi. Since most transport investments are
public goods, these infrastructure investments cannot be addressed by the free movement of market
forces (that is, private sector interventions) as they require large capital investments and addressing
externalities such as environmental problems. This can only be addressed by Government.
The rationale of the transport project concept paper is to improve operational efficiencies in the
transport sector by improving infrastructure and operational constraints identified by stakeholders
affecting both road and rail transport sub-sectors. These investments are earmarked to improve the
macroeconomic and sectoral policy (or regulatory) setting expected to create a conducive environment
for private sector led growth.

ix

For transport infrastructure, the focus is to have better domestic and regional interconnectivity of the
population to key road corridors within and out of Malawi and further facilitate improved mobility and
accessibility of rural communities to goods and services at low costs. In order to improve operational
efficiencies in the transport sector, the concept paper proposes the introduction of a Transport
Regulatory Authority who will be responsible, among other things, of ensuring the efficient, effective
and viable operation of transport options in the country particularly for road, rail and marine transport
infrastructure.
DESIRED LONG-TERM SECTOR OBJECTIVE
The long-term compact goal for Malawi is to promote economic growth and reduce poverty through
increasing competitiveness of agricultural and manufactured products by improving mobility and
accessibility. This goal is in line with the Malawi Growth and Development Strategy (MGDS) and the
Millennium Challenge Corporation (MCC) goals.
Specifically, the sector objective is to ensure more reliable, efficient and affordable transport options
available to producers and consumers in the country. The impact of such interventions will reduce
transportation costs for users by reducing travel time and access to markets (both national and
international).
At the microeconomic level, increased access to markets is expected to increase productivity,
diversification and returns to farmers and businesses through increased farmgate prices and inputoutput linkages. This is expected to increase economic agents disposable incomes thereby increasing
access to other socioeconomic services such as better health and education facilities, improved
livelihood and improved food security.
At the macroeconomic level, the increased production volumes and diversification are expected to
increase real Growth Domestic Product and, thus, real Growth Domestic Product per capita for Malawi
thereby realizing the long-term compact goal of poverty reduction and economic growth.
EXPECTED PROJECT OUTCOMES
In order to facilitate this process, the program logic has identified four outcomes that will lead to the
realization of the transport sector objective and contribute effectively to the compact goal. The
identified outcomes include the following:
i)

Improved efficiency and reliability of exports and imports on rail transport to ports of Nacala and
Beira;
ii) Increased access of rural communities to major trading centers and national transport network;
iii) Improved regulatory environment and enforcement of regulations in the transport sector; and
iv) Improved natural resources management of catchment areas around transport infrastructure
facilities.
The table below shows the program logic depicting the economic rationale of improving transport
infrastructure in Malawi.

Compact Goal: Economic growth and poverty

reduction thru increased competitiveness of
agricultural and manufactured products
Transport Objectives: More reliable, efficient and
affordable transport options available to producers
and consumers

Outcome 1: Improved
efficiency and reliability of
exports and imports on rail
transport to ports (Nacala
and Durban corridors)

Outcome 2: Increased
access of communities
to major trading centers
and national transport
network

Outputs
1. Rehabilitated &
Efficient Nacala Corridor
2. Rehabilitate rail fleet

Outcome 3: Improved
regulatory environment
and enforcement of
regulations in the
transportation sector

Outputs:
1. Rehabilitate MzuzuNkhata Bay main road
2. Upgrade Lirangwe Machinga feeder road
3. Upgrade Linthipe Lobi feeder road
4. Upgrade Cape
Maclear - Monkey bay
feeder road

Outcome 4: Improved natural

resources management of
catchments areas around
infrastructure facilities

Outputs:
1. Establish an operational
Transport Regulatory
Authority
2. Set up an Asset Holding
Company
3. Training on institutional
management and transport
sector reforms

Outputs :
1. Strengthened capacity to
formulate and enforce NRM
legislation.
2. Revised and harmonised
NRM policies.
3. Improved extension services
4. Improved livelihoods
through sustainable NRM
business enterprises

DESCRIPTION OF PROJECT OUTPUTS AND SPECIFIC ACTIVITIES

The proposed project outputs are outlined based on each outcome envisaged. The outputs include the
following:
A). Improved efficiency and reliability of exports and imports on rail transport to ports of Nacala and
Beira:
i) Track renewal of 588 km railway tracks which comprise of:
a) 487 km from Mchinji-Lilongwe-Salima-Nkaya-Nayuchi railway; and
b) 101 km from Nkaya-Nayuchi railway towards the Mozambican border.
ii) Acquisition of locomotives and rolling stock.
B). Increased access of rural communities to major trading centers and national transport network:
i) Upgrading and construction of roads that will address a backlog of improvement works on key
secondary roads linking to the primary network joining the five (5) corridors (main roads, rail and
water transportation systems). The selected feeder and main roads include the following:
a) Rehabilitation of the Mzuzu-Nkhatabay main road (47.0 km);
b) Construction of the Lirangwe-Machinga rural feeder road (74.4 km) in the southern region
linking to the Nacala and Durban Corridors;
c) Construction of the Linthipe-Lobi Rural Feeder Road (27.0 km); and
d) Construction of the Cape Maclear-Monkey bay rural feeder road (18.25 km).
C). Improved regulatory environment and enforcement of regulations in the transport sector:

xi

a) Policy and institutional management, which will be managed by the Ministry of Transport and
Public Works (MTPW) and the Roads Authority; and
b) Transport sector reforms, which will be managed by the MTPW under the guidance of the
Privatization Commission.
D). Improved natural resources management of catchment areas around transport infrastructure
facilities.
i) Strengthened capacity to formulate and enforce NRM legislation;
ii) Revised and harmonized NRM policies;
iii) Improved silt management systems; and
iv) Improved livelihoods through sustainable NRM business enterprises.
TOTAL ESTIMATED COSTS
The projected costs for the transport project concept paper are estimated to cost US$229.0 million for
the five (5) year implementation period. The costs are disaggregated as follows:
Outcome 1:
Outcome 2:
Outcome 3:
Outcome 4:

Improved efficiency and reliability of exports and imports on rail transport to ports of
Nacala and Beira
Increased access of rural communities to major trading centers and national
transport network
Improved regulatory environment and enforcement of regulations in the transport
sector
Improved natural resources management of catchment areas around transport
infrastructure facilities
Sub Total
Physical Contingency (20%)
Price Contingency (5%)
Engineering and Supervision Costs (5%)
TOTAL PROJECT ESTIMATED COSTS

$122,681,600
$39,820,800
$9,661,024
$4,000,000
$176,163,424
$35,232,685
$8,808,171
$8,808,171
$229,012,451

CONCLUSION
The transport sector project concepts are expected to overcome major infrastructure problems faced in
transporting economic goods and services in the country. The creation and sustenance of a continuous,
reliable, efficient and affordable transportation system is expected to increase competition in transport
service delivery thereby increasing the contribution that the manufacturing sector makes towards
exports and increased employment. Once these transport investments are developed, the private sector
is expected to contribute significantly towards Malawis economic growth and development through the
manufacturing sector by ensuring that real Growth Domestic Product growth rate averages 6% per
annum. The magnitude of the contribution from these investments is envisaged to increase the level of
public assets available to the poor for their economic welfare enhancement, empowerment and food
security.
The economic contribution of road transport infrastructure investments are diverse and are expected to
contribute to the reduction of the number of people living below the poverty line by more than 8.0%
and decrease those under extreme poverty based on consumption by a projected rate of 5.0%.
Furthermore, this is expected to contribute to increasing Malawis GDP or income per capita from
US$170 to an average of US$450 (MGDS selected output, outcome and impact indicators).
xii

I.
1.1

PROJECT RATIONALE AND DESCRIPTION

COUNTRY AND SECTOR ISSUES

Malawi is one of the Sub-Saharan African countries that is densely populated with a population
of about 13, 066, 320 people (Population and Housing Census Preliminary Results, 2008)
spreading over an area of 118, 484 km2. Socio-demographic indicators for Malawi indicate that
the proportion of people below the poverty line is 40% (Welfare Monitoring Survey, 2007)
whereas 17% of the countrys population is below the average minimal level of dietary energy
consumption.
Malawi is served by four transport modes namely road, rail, lake and air transport which
consists of a road network with an estimated distance of 15,451 km; 797 km of railway track
from Mchinji border with Zambia to Nsanje boarder with Mozambique and further to the east
from Nkaya to Nayuchi (Entre Lagos) at the Mozambican border; 5 (major) harbors on Lake
Malawi that handle cargo mainly from Mtwara in Tanzania; and 5 commercial airports (two
major international airports in Lilongwe and Blantyre) including 33 aerodromes.
Transport infrastructure plays a major role to the Malawian economy in terms of distribution of
exports and imports. The major trading blocs for Malawi comprise of the European Union (EU),
Southern African Development Community (SADC), the Common Market for East and Southern
Africa (COMESA) and the United States of America (USA). The EU is the key export destination
for Malawi accounting for 35% of Malawis exports, followed by SADC (29%) of which 16%
goes to the Republic of South Africa (RSA) COMESA (19%), USA (9%) and rest of the world
(ROW) accounting for 9%. Malawis major imports come from SADC (55%) particularly from the
RSA which accounts for 37% of Malawis imports. Imports from the EU account for 17% and
COMESA account for 11% of the imports to Malawi1. Food items including agricultural and
manufactured products constitute the bulk of imports from RSA. Annex 1 outline trends of
Malawi exports and imports to major trading blocs, selected countries and the rest of the
world.
Furthermore, figure 1 shows the countrys major international corridors that lead to the ports
of Nacala and Beira (Mozambique), Dar-es-Salaam (Tanzania), and Durban (RSA) on the Indian
Ocean coast. The Durban corridor is currently the main road transportation corridor handling
about 53% of Malawis international cargo whereas the Beira and Nacala corridor handles 22%
and 19%, respectively. The road-railway Dar-es-Salaam corridor and the TAZARA corridor
handle about 5% whereas the Mtwara corridor handles less than 1%. TERA International Group
(2005) grade Durban, Beira and Dar-es-Salaam corridors as being reliable and efficiently
operated transit routes for Malawi. The most reliable of the three routes, though the longest
route, is the Durban corridor due to adequate infrastructure facilities, good storage facilities,

These calculations are obtained from the SADC Trade data obtained at www.sadctrade.org/tradedata

frequent ship calls and efficient documentation handling2. The Nacala route, on the other hand
has a poor rating due to perennial flooding and poor infrastructure at the port making it the
most unreliable route.
Figure 1: Malawi Transport Corridors

See TERA International Group report (2005), p. 37

1.1.1

High Transportation Cost as a Constraint to Economic Growth in Malawi

The state of Malawis national transport infrastructure is characterized by inadequate road

networks, unexploited and inadequate access to ports, inadequate air links, and inadequate
freight and rail capacity. The inadequacy of linkages, inefficiencies and utilization between
existing transportation infrastructure has resulted in high costs of transportation in Malawi. At
national level, an analysis of transport costs (cost of insurance and freight) paid by exporters
and importers in Malawi has been rising over the years averaging 29% since 1994 (see figure 2).
Though Government undertook several macroeconomic and structural reforms in the 1990s to
promote competition and improve the management and financing of transportation
infrastructure, transport costs in Malawi continue to be high (TERA report, 2005).
Figure 2: Correlation between Rising Road Freight and Shipment Costs
100%

market share

80%
y = 0.0024x2 - 0.0656x + 0.7475
R = 0.6112

60%

40%
1984

1988

1992

1996

2000

2004

20%
y = -1E-05x4 + 0.0007x3 - 0.016x2 + 0.1196x + 0.0946
R = 0.64
0%

Year
Shipment as %age of Export Value

Road Freight Moved

Rail Freight Moved

Poly. (Shipment as %age of Export Value)

Poly. (Road Freight Moved)

To substantiate TERA International Group (2005) argument, figure 2 shows the positive
correlation between shipment costs and increases in road freight at national level since 19843.
The projected trend line shows that in the 1980s, both shipment costs and road freight were
falling exponentially until 1997 when they began to rise. In addition, between the periods 1984
to 1992, the 16-year old civil war in Mozambique that commenced in 1977 led to the decline of
the use of rail transportation and at par with cargo volumes moved by road. When the war
ended in 1992, cargo volumes that used the rail system rose again and enjoyed a high market
3

Shipment Costs includes receipts and payments which cover freight, insurance, handling and other distributive
services performed by residents of Malawi (receipts) on merchandise and other movable goods acquired and
owned by non-residents. On the debit side (payments), shipment costs cover the same services but performed by
non-residents of Malawi on movable goods acquired and owned by Malawi residents (Malawi Balance of
Payments, 1987). The data is obtained from Malawi Statistical Yearbooks from 1984 to 1993 and from table 3 of
the Balance of Payments Account for Malawi from 1994 to 2006. Freight data by mode are obtained from Annual
Economic Report series for the same period.

share until the Chiromo Bridge collapsed in 1997. Ever since, cargo volumes have been
declining and road usage has been increasing together with shipment costs. One of the major
reasons is due to the long distance covered by road haulers from Durban port to Blantyre
(2,340 km); from Beira port through Tete to Blantyre (825 km) and Dar-es-Salaam to Lilongwe
(1,667 km) that depend on trucks to transport most of Malawis exports and imports (see
figure 1)4. The market share of road haulers (both domestic and international freight) as of
2006 was 53% of the total exports and imports in Malawi as compared to 45% for rail and 2%
moved by lake services. Furthermore, TERA (2005) also attribute the rise of transport costs in
part as a result of Malawi being landlocked with a small market size. This is further
substantiated by the continued inefficient operational environment faced by both domestic
and international haulers despite Malawi liberalizing the transport sector since the 1990s.
On the other hand, since the rail sub-sector is (and was) capable of transporting large volumes
of goods at a low price, on time and using a shorter route as compared to other transport
corridors in Malawi, the functionality of the rail transport system is of vital importance to
Malawi. This becomes important when we consider terms of trade and competitiveness of
agricultural products with Malawis trade counterparts within (intraregional trade) and outside
the region (interregional trade). Furthermore, it is estimated that rail transportation is
approximately 20% more cost-effective than road transportation (Malawi Constraints Analysis
Final Report, 2009). Therefore, upgrading and reviving rail transportation is important for
Malawis economic development to reduce transportation costs in the country.
In a recent study by Munthali, Lall and Wang (2008)5, local transport costs, on the other hand,
are also high and are affected by isolation from main markets due to poor condition of existing
transport infrastructure (feeder roads and trunk roads, rail and marine infrastructure). The
study claims that households located too far way from markets (mainly urban centers or cities)
are highly affected by the poor condition of existing transport infrastructure, decreases
effective crop market demand and the input output linkage in Malawi. In this case, travel
time to markets is an important element of any farmers or business production function and
distance to the market determines the type of goods to be produced.
Another study done by Hydratec Consortium (2006) also stated the importance of improving
accessibility of rural areas. They argue that the improvement of feeder roads enhances
agricultural productivity in Malawi that leads to increased farmgate output prices by decreasing
transport costs to major market centers. This arises since competition becomes limited for
locations that are isolated by increasing the margin or premium charged for intermediaries.
Increasing accessibility in rural areas, therefore, decreases farmgate input prices and increases
farmgate yields. Since 85% of Malawis population live in the rural areas and where many of the
agricultural activities are being carried out, improving access (mobility and connectivity) for

See Malawi Transport and Road Sector Project Formation Study Report, p. 31. The rail distance from Beira port to
Blantyre is 575 km while from Nacala port to Blantyre is 815 km.
5
Spatial Dimensions of Growth: Maximising Impacts of Public Investments in Malawi

rural communities is of vital importance for Malawi to reduce poverty as well as promote
sustainable economic growth.
Jacoby and Minten (2008) also looked at methods of measuring the benefits of lower transport
costs in Madagascar and argued that a road that essentially eliminates transport costs would
boost incomes of the remotest household and have the most gain from improved access. They
argue that for households facing transport costs of about US$75 per ton (or US$0.075 per kg)
their non-farm earnings would increase by 50% if a rural road is constructed. This is the case
since non-agricultural earnings decline with remoteness as the larger part of the earnings are
paid for transport costs to a nearby market. As a result, those near a market place will pay less
for transport and grow less-valued crops such as fruits and vegetables as compared to those
isolated that grow high-valued cash crops such as tobacco, rice, etc., to curb the effect of high
transport costs. In this case, the effective price for any commodity is given as:
v~ v
where v farmgate price
distance covered
transport cost or premium charged per km, and
v~ competitive market price of commodity x

(1)

Therefore, the longer the distance, the lower will be the earnings at the farmgate to cover
transportation costs to the market. This becomes worse when the road is unpaved especially in
rainy seasons as the premium paid for transport becomes high as compared to a paved road.
Jacoby and Minten (2008) conclude that for remote households that are poorer, a policy of
building rural roads can have desirable distributional properties.

1.2

SUMMARY OF PROBLEMS
TRANSPORTATION IN MALAWI

FACED

BY

ROAD

AND

RAIL

High transportation costs in Malawi are a function of a set of problems and constraints faced by
each mode of transport that is, road, rail, marine and air. All modes are faced with
inefficiencies emanating from administrative and technical problems. The transport project
concept paper will, however, focus on two transportation modes vis--vis: road and rail
transportation. During the stakeholder consultations, a summary of problems were identified
by various stakeholders. Below is a description of the problems identified for both road and rail
constraints.
1.2.1

Road Transportation Constraints

The stakeholder analysis identified a poorly functioning road system as the main constraint
affecting the smooth operation and utilization of roads in Malawi. The major contributors to
the whole process include, among other things: poor condition of feeder roads; limited

planning and maintenance capacity; non-adherence to strategic plan priorities; low

sustainability of trunk roads; and inadequate road network.
Road transportation in Malawi accounts for more than 50% of Malawis domestic cargo
transportation. Malawis roads fall into five (5) classes of main, secondary, tertiary, district and
urban roads (see table 1 below). In addition to these classes, nonstandard roads are estimated
to cover a distance of approximately 10,000 km. Of the total road length, paved roads
constitute 26% (4,038 km) of which 70% comprise of main roads and 19% are urban roads
and 74% are unpaved roads. District roads serve as feeder roads connecting to main roads as
well as community roads.
6

Table 1: Road Classification by Class

Road Class
Paved Roads
Total
Composition
Length
Ratio (%)
Main
2,809
70%
Secondary
407
10%
Tertiary
44
1%
District
8
0%
Urban
770
19%
Total
4,038
100%
% of Total
26%

Unpaved Roads
Composition
Total Length
Ratio (%)
548
5%
2,718
24%
4,077
36%
3,491
31%
579
5%
11,413
100%
74%

Total
Composition
Total Length
Ratio (%)
3,357
22%
3,125
20%
4,121
27%
3,499
23%
1,349
9%
15,451
100%

The existing road density is considered good by regional standards. According to the
international roughness index (IRI), only 79% of paved roads are in good condition with an IRI
of less then 4; 19% of paved road network in fair condition with an IRI of 4 6; and only 2% of
the paved road network with an IRI of more than 6. However, all unpaved roads are in bad
condition and become inaccessible during the rainy season. For the entire unpaved road
network, 14% of the roads have an IRI of less than 7; 46% with an IRI of 7 9; and 40% has an
IRI of more than 9.
Table 2: International Roughness Index for Malawis Road Network
Conditions of Paved Roads
Conditions
IRI
Composition Ratio
Good
<4
79%
Fair
46
19%
Poor
>6
2%

Conditions of Unpaved Roads

IRI
Composition Ratio
<7
14%
79
46%
>9
40%

The increasing flows of traffic, largely from heavy vehicles, have significantly damaged most of
the paved road surfaces in the country. This has been expounded by the poor planning and
forecasting of traffic volumes for both existing and new roads affected by inadequate budget
allocation for both rehabilitation and maintenance from public resources. This is further
exacerbated by poor natural resources management that damage road infrastructure in some

6
7

Source: Malawi Transport and Road Sector Project Formation Study Report
Ibid

cases due to surface runoff, erosion and flooding resulting from poor land use in catchment
areas.
Table 3 shows the agencies responsible for maintaining the existing road network in Malawi.
The Roads Authority is responsible mainly for main, secondary and district roads and obtains
their financing from the Road Fund (fuel levy and road transit charges). Community and urban
roads are mainly the responsibility of District Assemblies and obtain their resources from the
Ministry of Local Government and Rural Development, which are often inadequate to carry on
operation and maintenance works. The Roads Authority sometimes assists Town Assemblies in
the maintenance of some urban roads.
Table 3: Road Maintenance Responsibilities by Institution

Class

New Class (km)

Organization In Charge of Maintenance

Financial Resources/Funds

Main
Secondary
District
Community
Urban

4,006
4,249
8,095
7,019
1,560

Roads Authority
Roads Authority
Roads Authority
Assemblies
Roads Authority or Assemblies

Road Fund
Road Fund
Road Fund
Central Government and Local Revenue
Road Fund and/or Local Revenue

The Malawi Government, after realizing the need to address transport infrastructure
constraints, will in the medium-term emphasize on improving road, rail and water transport
infrastructure to ensure that alternative transport modes are improved (MGDS, 2006-2011). By
this it aims to reduce lead times on exports; decrease costs on domestic trucking; lower costs
on cross-border and transit trade with neighboring countries. Furthermore, it aims to lower
costs of reaching domestic, regional and international markets; and improve the mobility and
connectivity of rural producing communities to markets. The lack of development of unpaved
roads particularly in the districts and rural areas has made accessibility to major public areas
like hospitals, schools and markets difficult and too costly for beneficiaries.
1.2.2

Rail Transportation Constraints

Stakeholder consultations concluded that the rail system in Malawi, in spite of providing the
shortest exit route for Malawian commodities, was unreliable and inefficient. The major
constraints identified include, among other things: inadequate rail coverage within the country;
poor asset management and maintenance by the concessionaire; poor condition of Nacala
port; and weak regulatory environment.
The rail routes in Malawi comprise of two single-track routes, namely: i) the south-west border
route (Beira or Sena Corridor); and ii) the Nkaya-Nayuchi route (Nacala Corridor). The rail
routes are all located in the southern and central regions of the country and are owned by the
central government. The south-west boarder route has a total length of 696 km and runs north
from Mchinji west to the border between Malawi and Zambia in the Central Region through
8

Ibid

Salima, Blantyre, Chiromo, and Marka in Nsanje (the border post with Mozambique) to Beira
(see figure 1).
As is evident from table 4, the first few years that the Central East African Railways (CEAR) took
over operations of the railway in 1999 resulted in an increase in the amount of freight being
handled for at least the first four years. The current cargo transportation volume by rail
remains at an average of 321,000 metric tons per year. As of 2007, the average cargo
transported through rail declined by 33% compared to the cargo in 1999. The volume of cargo
has on average decreased by 2.0% per annum since 1999 and this has been largely due to the
shifting of cargo from rail to road transportation due to rail inefficiencies and collapse of key
infrastructure such as bridges. The inefficiencies are largely due to frequent flooding
accentuated by runoff and siltation due to poor land use and management practices in
catchment areas resulting in line closures, lack of adequate cargo handling equipment at the
port of Nacala and lack of operating locomotives.
9

Table 4: Total Traffic Moved by Rail since 1999 (Tons) and Rail Market Share
Cargo Volumes (000 tons)
1999
2000
2001
2002
2003
2004
2005
Exports
39
101
136
94
83
88
61
Imports
109
155
140
186
150
135
110
Local
197
250
172
183
40
17
23
Total
344
506
448
463
273
240
194
Annual Growth Rate
47.0%
-11.5%
3.4%
-41.0%
-12.1%
-19.1%
Rail Market Share as a %age of Total Exports and Imports (000 tons)
Total Exports
389
430
378
505
460
500
Total Imports
578
652
1,778
1,070
1,212
1,141
Total
967
1,082
2,156
1,574
1,672
1,641
Rail Market Share
26%
25%
13%
15%
13%
10%

2006
57
114
20
191
-1.6%

2007
94
122
15
231
20.9%

417
1,119
1,536
11%

Figure 3 below outlines the current rail network that is functional in Malawi. The Beira rail
route, however, has remained closed ever since floods destroyed a 350-m stretch south of
Chiromo in 1997 (see figure 3 where the rail link meets the Shire River at Makhanga). When the
route was operational, it became the shortest access route to Beira port from the main
commercial city of Blantyre (575 km) as compared to 825 km by road via Tete in Mozambique
(see figure 1).
Key constraints affecting rail transportation on the Beira route originated from the collapse of
the Chiromo Bridge in 1997 and the railway bridge on the Rivirivi River in 2003. Though the
latter was restored in 2005, the Chiromo Bridge needs to be replaced in order to restore the
rail network to Beira port. The main disadvantage of Beira Port is the restricted access due to
siltation of the 27 km long access channel, which causes operational difficulties. However,
improvements on the Beira corridor in Mozambique with funding from the European Union
(EU) and the rehabilitation works by the Mozambican concessionaire up to Sena border post
with Malawi (Nsanje), on the other hand, makes the Beira rail route more reliable for Malawi.
9

Source: Central East African Railways Annual Reports and www.sadctrade.org/tradedata

Furthermore, on the western boarder with Zambia, the Zambian Government is extending the
rail connection from Chipata to Mchinji border. Once this route is rehabilitated, it will become
the shortest access route for cargo volumes coming from the central and northern regions in
Malawi and eastern Zambia to the sea and thus making rail transportation a viable transport
option for Malawi.
Figure 3: Malawi Rail Routes

On the other hand, the Nkaya-Nayuchi route on the Nacala corridor has a total length of 101
km and branches off towards the east of the country from Nkaya (about 90 km north of
Blantyre city) and passes through Liwonde to Nayuchi at the border post with Mozambique
(see figure 3). From Nayuchi, the Nacala port connects Malawi to the Indian Ocean passing
through Entre Lagos, Cuamba and Nampula in Mozambique. However, the 77-km rail section
from Entre Lagos to Cuamba is in a bad state and the concessionaire in Mozambique Corredor
de Desenvolvimento do Norte (CDN) is currently carrying out spot-rehabilitation works of
which 12 km of rail track has been rehabilitated10. It is expected that by September, 2009 the
rehabilitation of the 77 Km would have been completed.

10

A detailed analysis of the condition of existing infrastructure along the Nacala and Beira corridors can be found
in TERA International Group Report (2005), pp. 20-24

It usually takes between six (6) to seven (7) hours to travel this section by train at an average
speed of 15-20 km/hr and during the rainy season train services are suspended as the rail
tracks become submerged under water. The return trip from Nacala port would usually take 8
10 days as compared to the normal lead time of 2 days. This is further substantiated by the
frequent flooding and inefficiencies of the Nacala port that has reduced customer confidence
on using this route11. However, improving the 101 km section from Nkaya to Nayuchi, which is
part of the entire rail network in Malawi, is of importance internationally as well as
domestically as it will increase access to the rural communities within this region to markets
within Malawi due to the agronomic and cash crop potential of the area12.
The condition of the rail is divided into six sections depending on the year each section was
built. The first section is the Marka (Border) to Limbe railway line which was built in 1908. This
section joins the Sena (Beira) railway line in Mozambique and is approximately 209 kms from
the border to Limbe. The condition of the rail is in a bad state and has 30kg rail with steel
sleepers. The Chiromo Bridge is on this section that was washed away in 1997. The second
section is from Limbe to Salima that was built in 1932 and has major problems with alignment
and most of the rails are different where in some sections it has 40kg, 37kg and 30kg rails. The
third section is the Nkaya to Nayuchi (border) railway line which was built in 1970 and
comprises of 40kg rails with concrete sleepers. The fourth section is the Salima to Kanengo
railway line which was built in 1978. Though this section has 40kg rails with concrete sleepers,
the alignment is difficult. Lastly, the Kanengo to Mchinji border with Zambia was built in 1981
and has 40kg rails with concrete sleepers13.
The entire rail track system, which has not been maintained for many years, is now badly in
need of a major overhaul if present services are to be continued. Consequently, with the
current state of the rail track system, there are many speed reductions on the line due to the
poor state of the track. If substantial rehabilitation works are not carried out on the line
including replacing the Chiromo bridge, it is expected that cargo volumes will continue to fall
and for the remaining sections that are operational more speed reductions and load
restrictions will continue to be enforced to avoid the risk of derailments.
In addition, worn out railheads and reduced track stability will result in increased wheel
maintenance thereby increasing the operation and maintenance costs for the operator.
Furthermore, all locomotives operated by CEAR are old and dilapidated and this has increased
operation and maintenance costs for the concessionaire. The frequent suspension of rail
services as a result of the poor state of infrastructure, natural hazards as well as poor
regulatory environment has affected rail operations (cash flows and revenues). On the
regulatory front, the Ministry of Transport and Public Works (MTPW) ran a concession for 10
11

Ibid
Figure 5 in section 2 highlights the agronomic and cash crop potential areas in Malawi and the 101 km rail track
passes through one of the highest quintiles.
13
The complete requirements and costing for the railway line in Malawi were assessed by GOPA Worldwide
Consultants between February and April 2009.
12

10

years without a formal 5-year review or renegotiation. A TRC Global Management Solutions
Report carried out in 2007 identified difficulties and relationship strains between MTPW and
the concessionaire (CEAR) due to a weak regulatory oversight in place affected by a poorly
structured contract.

1.3

PROJECT RATIONALE

High transportation costs in Malawi are largely caused by inefficiencies of operations and
inadequacy of infrastructure within the country. This has affected the smooth movement of
goods and services. Since most transport investments are public goods, these infrastructure
investments cannot be addressed by the free movement of market forces (that is, private
sector interventions) as they require large capital investments and addressing externalities
such as environmental problems. This can only be addressed by Government.
The rationale of the transport project concept paper is, therefore, to contribute to the
establishment of high quality freight and passenger services and improve operational
efficiencies in the transport sector by improving infrastructure and operational constraints
identified by stakeholders affecting both road and rail transport sub-sectors. These investments
are earmarked to improve the macroeconomic and sectoral policy (or regulatory) setting
expected to create a conducive environment for private sector led growth. The project will
make use of both new regulatory structures such as the creation of the TransRA responsible for
economic regulation and existing regulators such as the Water Resources Board who are
responsible for social regulation (social, health and environmental regulation)14.
For transport infrastructure, the focus is to have better domestic and regional interconnectivity
of the population to key road corridors within and out of Malawi and further facilitating
improved mobility and accessibility of rural communities to goods and services at low costs. In
order to improve operational efficiencies in the transport sector, the concept paper proposes
the introduction of a Transport Regulatory Authority (TransRA) who will be responsible, among
other things, of ensuring the efficient, effective and viable operation of transport options in the
country particularly for road, rail and marine transport infrastructure.

1.4

DESIRED LONG-TERM SECTOR OBJECTIVE

This section provides the program logic for the proposed transport sector interventions. The
long-term compact goal for Malawi is to promote economic growth and reduce poverty
through increasing competitiveness of agricultural and manufactured products by improving
mobility and accessibility. This goal is in line with the Malawi Growth and Development
Strategy (MGDS) and the Millennium Challenge Corporation (MCC) goals.

14

There are a number of regulatory bodies in Malawi responsible for various sectors in the country. The relevant
regulators in the transport sector will be identified once the Catchment study is finalised.

11

Specifically, the sector objective is to ensure more reliable, efficient and affordable transport
options available to producers and consumers in the country. The impact of such interventions
will reduce transportation costs for users by reducing travel time and increasing access to
markets (both national and international).
At the microeconomic level, increased access to markets is expected to increase productivity,
diversification and returns to farmers and businesses through increased farmgate prices and
input-output linkages. This is expected to increase economic agents disposable incomes
thereby increasing access to other socioeconomic services such as better health and education
facilities, improved livelihood and improved food security.
At the macroeconomic level, and as if led by the invisible hand, the increased production
volumes and diversification are expected to increase real Growth Domestic Product (GDP) and,
thus, GDP per capita for Malawi thereby realizing the long-term compact goal of poverty
reduction and economic growth.
Figure 4: Transport Program Logic
Compact Goal: Economic growth and poverty
reduction thru increased competitiveness of
agricultural and manufactured products
Transport Objectives: More reliable, efficient and
affordable transport options available to producers
and consumers
Outcome 1: Improved
efficiency and reliability of
exports and imports on
rail transport to ports
(Nacala and Durban
corridors)

Outcome 2: Increased
access of communities
to major trading centers
and national transport
network

Outputs
1. Rehabilitated &
Efficient Nacala Corridor
2. Rehabilitate rail fleet

Outcome 3: Improved
regulatory environment
and enforcement of
regulations in the
transportation sector

Outputs:
1. Rehabilitate MzuzuNkhata Bay main road
2. Upgrade Lirangwe Machinga feeder road
3. Upgrade Linthipe Lobi feeder road
4. Upgrade Cape
Maclear - Monkey bay
feeder road

Outcome 4: Improved
natural resources
management of catchments
areas around infrastructure
facilities

Outputs:
1. Establish an operational
Transport Regulatory
Authority
2. Set up an Asset Holding
Company
3. Training on institutional
management and transport
sector reforms

Outputs :
1. Strengthened capacity to
formulate and enforce NRM
legislation.
2. Revised and harmonised
NRM policies.
3. Improved extension
services
4. Improved livelihoods
through sustainable NRM
business enterprises

12

1.5

EXPECTED PROJECT OUTCOMES

In order to facilitate this process, the program logic has identified four outcomes that will lead
to the realization of the transport sector objective and contribute effectively to the compact
goal. The identified outcomes include the following:
i) Improved efficiency and reliability of exports and imports on rail transport to ports of
Nacala and Beira;
ii) Increased access of rural communities to major trading centers and national transport
network;
iii) Improved regulatory environment and enforcement of regulations in the transport
sector; and
iv) Improved natural resources management of catchment areas around transport
infrastructure facilities.

1.6

DESCRIPTION OF PROJECT OUTPUTS AND SPECIFIC ACTIVITIES

The proposed project outputs are outlined based on each outcome envisaged. The outputs
include the following:
A). Improved Efficiency and Reliability of Exports and Imports on Rail Transport to Ports of
Nacala and Beira:
i) Rehabilitation of 588 km railway tracks which comprise of:
a) 487 km from Mchinji-Lilongwe-Salima-Nayuchi railway including the rehabilitation of
the washed out railway bridges;
b) 101 km from Nkaya-Nayuchi railway towards the Mozambican border; and
ii) Acquisition of locomotives and rolling stock.
B). Increased Access of Rural Communities to Major Trading Centers and National Transport
Network:
i) Upgrading and construction of roads that will address a backlog of improvement works
on key secondary roads linking to the primary network joining the five (5) corridors
(main roads, rail and water transportation systems). The selected feeder and main roads
(see annex 2) include the following:
a) Rehabilitation of the Mzuzu-Nkhatabay main road (47.0 km);
b) Construction of the Lirangwe-Machinga rural feeder road (74.4 km) in the southern
region linking to the Nacala and Durban Corridors;
c) Construction of the Linthipe-Lobi Rural Feeder Road (27.0 km); and
d) Construction of the Cape Maclear-Monkey bay rural feeder road (18.25 km).
C). Improved Regulatory Environment and Enforcement of Regulations in the Transport
Sector:
i) This will include:
a) Policy and institutional management, which will be managed by the Ministry of
Transport and Public Works (MTPW) and the Roads Authority; and
13

b) Transport sector reforms, which will be managed by the MTPW under the guidance of
the Privatization Commission.
D). Improved Natural Resources Management of Catchment Areas Around Transport
Infrastructure Facilities.
i) This will include:
a) Strengthened capacity to formulate and enforce NRM legislation;
b) Revised and harmonized NRM policies;
c) Improved extension services; and
d) Improved livelihoods through sustainable NRM business enterprises.

1.7

DETAILED PROJECT OUTPUTS

1.7.1

Rehabilitation of the Rail Transportation Network

The overall objective of rehabilitating and upgrading of the rail transportation system is to
increase competition in the sector and open up Malawi to cheaper alternatives of transporting
bulky agricultural and manufactured goods both into (imports) and out (exports) of Malawi.
The poor state of the railway infrastructure has diverted the distribution of goods and services
that were once transported by CEAR to road truckers. The priority investments are, therefore,
important to bring back the credibility and reliability of transporting large volumes of cargo to
the sea. Major investments include: i) rail track renewal and bridge rehabilitation of the Nacala
Corridor which comprise of 588 km of rail tracks from Mchinji Border to Nayuchi in the Central
Region and from Blantyre (Limbe) in the southern region; and iii) the acquisition of locomotives
and rolling stock.
The rehabilitation of the entire rail infrastructure will include the overhaul of the infrastructure
components (rails, sleepers, fastenings, ballast and replacement of old tracks) and the
consolidation of the stationary feeble ground of the substructure. The works required for the
project can be summarized as follows: reinstatement and improvement of drainage along
track; replacement of track material and correlation geometry; concrete or steel re-sleepering;
replacement of rails; remedial work on contaminated ballast; replacement of fastenings; and
insertion of tampon layers on stationary feeble ground of the substructure. Annex 7 outlines a
detailed analysis of the existing condition of the railway line and what needs to be replaced to
improve the efficiency and effectiveness of railway transportation within Malawi. Two surveys
were conducted by CEAR in 2008 to establish the condition of the railway infrastructure and
recommended a thorough rehabilitation of the railway network within the country.
1.7.2

Improving Rural Accessibility

Priority investments for infrastructure development under road transportation program will
include improving accessibility and connectivity of rural communities to the main transport
network system comprising of rural and trunk roads. Three (3) feeder roads, one from each
region, have been identified based on the areas economic potential that link to the main
14

transport grid and one (1) main road identified for upgrading and rehabilitation. The new roads
to be constructed are expected to increase the percentage of paved roads to 27%.
15

Table 5: Road Classification by Class with Project Implementation

Unpaved
Road Class Paved Roads
Roads
Composition
Composition
Total Length
Total Length
Ratio (%)
Ratio (%)
Main
2,809
68%
548
5%
Secondary
527
13%
2,598
23%
Tertiary
44
1%
4,077
36%
District
8
0%
3,491
31%
Urban
770
19%
579
5%
Total
4,158
100%
11,293
100%
% of Total
27%
73%

Total
Total Length
3,357
3,125
4,121
3,499
1,349
15,451

Composition
Ratio (%)
22%
20%
27%
23%
9%
100%

These comprise of i) the Lirangwe-Machinga rural feeder road (74.4 km) joining the rural
communities of Zomba, Machinga and Blantyre to the rail network (Beira Corridor) and Durban
Corridor; ii) the Linthipe-Lobi rural feeder road (27.0 km) in the central region joining the rural
communities of Dedza, Ntcheu and Lilongwe to the Durban Corridor; iii) the Mzuzu-Nkhatabay
main road (47.0 km) connecting farmers within the area to Lake Malawi and the corridors; and
iv) construction of the Cape Maclear-Monkey bay rural feeder road (18.25 km) that is mainly
used for tourism and link to the Monkey bay port.
1.7.3

Improved Regulatory Environment and Enforcement of Regulations in the

Transport Sector

1.7.3.1 Sector Management

The aim of this sub-component is to provide capacity building and institutional support to the
MTPW, Roads Authority (RA), Road Infrastructure Training institutions and District Assemblies
in managing and implementing transport sector projects. Key implementers in the sector
comprise of staff (both at national and district levels) at MTPW (through departments of roads,
marine, rail, and planning) and RA (central roads, urban and district roads, procurement, and
planning) that have the technical personnel to supervise the projects. Capacity building will
play a key role under sector management particularly in areas of policy review, procurement,
maintenance, monitoring and evaluation, and institutional building by ensuring that social and
economic regulatory issues are addressed in the sector. Additionally there is need to enhance
capacity through procurement of equipment to support Road Infrastructure Planning and
Testing.

15

Ibid

15

1.7.3.2 Transport Sector Reforms

In 2001, the Government of Malawi commissioned a study, through the Privatization
Commission, on harmonization of the legal and regulatory framework in Malawi. One of the
recommendations was the establishment of three (3) multi-sector regulatory authorities in the
country covering the following infrastructure sectors: transport, communication, water and
energy. The establishment of a Transport Regulatory Authority (TransRA) that would oversee
the regulation of road, marine and rail transport networks in the country was one of the
regulators to be established. It was realized that though the MTPW was in a position to act as a
regulator, there was no evidence of anyone mandated to keep an independent oversight to
concessionaires or to ensure that Public Private Partnership (PPP) parties meet their
contractual obligations.
The TRC Global Management Solutions Report (2007) on the establishment of multi-sector
regulatory authorities stated that in order for MTPW to push for PPPs in all sub-sectors, it was
important that independent regulations and dispute procedures were in place before
concession contracts were signed and operational. The role of TransRA in this case would be to
facilitate economic as well as safety regulations for all transport modes. In addition, TransRA
will assist MTPW in assessing and regulating to rationalize the cost of transporting goods
thereby contributing effectively to the sectors overall objective.
As such, the major investments in this sector will involve:
a) The creation and development of an appropriate legal and regulatory framework including
a regulatory institution that will be involved in defining road, rail and marine tariff setting
and adjustment rules and monitor and reinforce quality of service of concessionaires;
b) Preparation and review of the current institutional framework and governance system to
encourage performance agreements between concessionaires and Government (this will
involve setting up an Asset Holding Company);
c) Preparation of a longer-term reform option that involves PPP transactions; and
d) Stakeholder consultations and consensus building of the envisaged reform plan.
1.7.4 Improved Natural Resources Management of Catchment Areas around Transport
Infrastructure Facilities

Many catchment areas in Malawi are experiencing varying levels of environmental degradation
problems which are contributing increasing surface runoff and siltation resulting in damage to
transport infrastructure such as roads, bridges, culverts and other structures. Annex 4 outlines
some of these problems and key to them is inappropriate land use and management practices
in catchment areas where transport infrastructure is located. Other problems include weak
enforcement of NRM legislation, conflicting NRM policies, lack of alternative and affordable
sources of energy, population pressure and lack of coherence in the institutional arrangements
to effectively coordinate and implement NRM programs. All these problems promote

16

deforestation and soil erosion resulting in increasing runoff, flooding and sedimentation which
damage transport infrastructure.
Although site specific interventions to address the NRM problems shall be determined after a
catchment management study, it is envisaged that required investment should include the
following:
1.7.4.1 Revised and Harmonized NRM Policies

A number of Natural Resources Management (NRM) sector policies have been developed and
are being implemented in Malawi to promote sustainable development through the sound
management of the countrys natural resources. These include the forestry, fisheries, water,
land use and management, national parks and wildlife and energy policies. However, it has now
been realized that there are significant gaps, duplications, errors and omissions, conflicts and
inconsistencies between some of these policies. These irregularities make implementation and
enforcement efforts on the policies very difficult necessitating regular reviews and
harmonization.
1.7.4.2 Strengthened Capacity to Formulate And Enforce NRM Legislation

Weak enforcement of NRM legislation is leading to unsustainable use and management of

natural resources in many areas in Malawi. For example, degradation of many catchment areas
and river banks could be attributed to weak enforcement of relevant sections of the forestry,
land use and water legislations.
1.7.4.3 Improved Extension Services

Inappropriate land use and management practices taking place in many parts of the country
could be attributed to inadequate extension services offered to farmers. Capacity building will
improve the ability of the extension staff to provide better and improved services.
1.7.4.4 Improved Livelihoods through Sustainable NRM Business Enterprise

Over dependence on natural resources as a source of income is linked to the rapid degradation
of environment and natural resources base in Malawi. Promotion of sustainable economic
diversification through income generation activities and public-private sector partnership
technologies will reduce pressure on natural resources.
The outputs designed to achieve outcome 4 are expected to cost a large sum of money and will
require the contribution of many development partners. MCC contribution to this amount will
initially be US$ 4.0 million and shall be determined after a catchment management study.

17

1.8

ESTIMATED COSTS

The MCA-Malawi compact program for the transport sector is a five (5) year compact
agreement. For the transport sector, the total estimated project cost amounts to US$229.0
million with a grant-financing from the Millennium Challenge Corporation (MCC) that will assist
the Government of Malawi to improve the efficiency and competitiveness of the transport
network system in the country. The preliminary total cost estimates for the project are based
on current market prices and are broken down as follows:

18

Table 6: Preliminary Cost Estimates for Priority Investments in the Transport Sector
Cost Item
Outcome 1: Improved efficiency and reliability of exports and imports on rail transport to ports of Nacala
and Beira
Output 1: Track Renewal from Mchinji to Nayuchi & Blantyre to Nkaya - 588 km
Kanengo to Mchinji (Border)
Salima to Kanengo
Nkaya to Salima
Limbe to Nkaya
Nkaya to Nayuchi (Border)
Sub Total
Output 2: Bridge Rehabilitation - Renewal & Replacement
Kanengo to Mchinji Border
Salima to Kanengo
Nkaya to Salima
Limbe to Nkaya
Nkaya to Nayuchi (Border)
Sub Total
Total on Railway Tracks Renewal & Rehabilitation
Output 3: Locomotives
Acquisition of 3 new locomotives
Rehabilitation of 10 locomotives
Total on Locomotives
Total for Outcome 1
Outcome 2: Increased access of rural communities to major trading centers and national transport
network
Civil Works
Civil Works for Mzuzu-Nkhatabay Road (47.0 km)
Civil Works for Lilangwe-Namatunu - Changalume - Machinga (74.38 km)
Civil Works for Linthipe-Lobi Rural Feeder Road (27.0 km)
Cape Maclear-Monkey bay Turnoff Rural Feeder Road (18.25 km)
Subtotal on Technical Works
Total for Outcome 2
Subtotal on Outcome 1 & 2
Outcome 3: Improved regulatory environment and enforcement of regulations in the transport sector
Project Administration (1%)
Training on Institutional Management and Transport Sector Reforms
Setting up of TransRA (Operating and Capital Costs)
Creation and Adoption of Appropriate Regulatory Frameworks (Bills and Regulations)
Preparation and Review of Current Institutional Framework and Governance System
Preparation of Longer-term Reform Option that involves PPP Transactions
Stakeholder Consultations and Consensus Building
Total for Outcome 3
Outcome 4: Improved natural resources management of catchment areas around transport
infrastructure facilities
Site specific outputs shall be determined after the Catchment Management Study
Sub Total on Outcome 4
Subtotal on Outcome 1, 2, 3 & 4
Physical Contingency (20%)
Price Contingency (5%)
Engineering and Supervision Costs (5%)
Total Project Estimated Costs

Estimated Cost (US$)

$2,017,600
$16,572,800
$55,724,800
$24,230,400
$776,000
$99,321,600
$120,800
$211,200
$7,773,600
$3,071,200
$183,200
$11,360,000
$110,681,600
$10,800,000
$1,200,000
$12,000,000
$122,681,600

$20,680,000
$11,900,800
$4,320,000
$2,920,000
$39,820,800
$39,820,800
$162,502,400
$1,625,024
$2,500,000
$4,400,000
$96,000
$800,000
$80,000
$160,000
$9,661,024

$4,000,000
$4,000,000
$176,163,424
$35,232,685
$8,808,171
$8,808,171
$229,012,451

19

II.

PROJECT CONTEXT AND DEVELOPMENT PLANS

2.1

SECTOR DESCRIPTION

In 2005, the Government of Malawi developed the Malawi Growth and Development Strategy
(MGDS) through a participatory process that is expected to be implemented from 2006 to
2011. The aim of the strategy is to spearhead both economic and social developments in the
country. The focus of the MGDS is to revive the Malawian economy through an emphasis on
strategies that will contribute to sustainable economic growth and infrastructure development.
These strategies target the creation of wealth and reduction of poverty that Malawi has faced
for several decades. The strategy has also earmarked the private sector as the driving force
towards transforming Malawi from a predominantly importing country to a net-exportoriented nation. To achieve this goal, five themes and six-key priority areas have been
identified, which are expected to promote immediate economic growth within the MGDS
medium-term plan (2006-2011).
Transport infrastructure development is one of the key priority areas indentified under the
MGDS and plays an important role in facilitating agricultural growth in Malawi. Figure 5
illustrates the agronomic potential areas as well as areas where major cash crops are produced
(tobacco, tea, sugar and cotton). The main road and rail transport networks pass through these
agricultural areas thereby facilitating the smooth distribution of goods and services to key
markets both within and outside of Malawi.
Figure 5: Agronomic Potential, Cash Crop Areas and Road Network in Malawi

20

2.1.1

Role of the Transport Sector in the Overall Economy

Road and rail transport infrastructure in Malawi is mainly used to transport key commodities to
markets in cities and other major export destinations within Sub-Saharan Africa and the world.
For example, tobacco growers situated in the Central Region, transport their tobacco to
Lilongwe city where the Tobacco Auction Floors are situated. The mode of transportation is
usually through road and rail transportation. The rail transportation system runs from Mchinji
to Nsanje and pose as a good network to transport bulky products to the nearest ports of Beira
and Nacala.
Investment in the transport infrastructure such as roads and rail has a direct impact of linking
production and markets as well as improving access to social services. It is widely
acknowledged that improved transportation links reduces transport costs and leads to creation
of marketing networks. As analyzed under section one, high quality and availability of transport
facilities provide social benefits through improved access to social and economic services such
as education, health and markets by facilitating mobility especially for rural communities.
On the other hand, the social, economic and development polices stipulated in the MGDS are
further exemplified in the National Transport Policy. The national transport goal is to ensure
the provision of a coordinated transport environment that fosters a safe and competitive
operation of commercially viable, financially sustainable, and environmentally friendly
transport services and enterprises.
2.1.2

Role of Government and the Private Sector

Government policy through the MGDS clearly stipulates the role of Government and the
private sector. By adopting the key strategies outlined in the MGDS, Government will ensure
that a favorable macroeconomic environment is created for private sector development. As
such, Government will continue to focus on policy formulation and addressing key
infrastructure constraints and good governance that have been reported to contribute towards
improving key macroeconomic variables such as a stable and appropriately valued exchange
rate, a sustainable government budget deficit, low inflation and interest rates, and a favorable
average real GDP growth rate.
The private sector, on the other hand, has been earmarked to play a vital role in improving the
manufacturing sector particularly in agro-processing by adding value to key crops such as tea,
tobacco, sugar and cotton. The private sector will also be involved in promoting potential
growth sectors in the country such as tourism and mining sectors which are expected to
contribute positively to real GDP growth by a projected average of 8% by 2011 for tourism and
10% annually for the mining sector and reduce poverty by creating employment for many
Malawians16.

16

Projections based on MGDS calculations.

21

2.1.3 Linkages of Concept Project to Economic Constraints Analysis, Sector Analysis and
Public Consultation Process

The structure of the transport project concept paper is based on the constraints and problem
tree analysis which identified transport infrastructure as a limiting factor towards reducing
poverty and sustaining economic growth in Malawi. The compact goal, sector overall objective,
project outcomes and key outputs were all identified from the public and stakeholder
consultations conducted between September and December 2008. These public consultations
identified the key problems faced in the transport sector that results in high transportation
costs for users. The public consultations identified a poorly functioning road system, unreliable
and inefficient rail network and the unexploited potential of marine transportation as one of
the major drivers of high transportation costs in the sector.

2.2

GOVERNMENT STRATEGIES AND PLANS FOR TRANSPORT

INFRASTRUCTURE DEVELOPMENT

The MGDS has prioritized transport infrastructure development as one of the key priorities to
improve infrastructure services in the country. The medium-term strategy earmarks improving
two major networks in the country, namely: road and rail transportation.
2.2.1

Road Transportation

The long-term goal is to ensure that road transportation costs are reduced in order to
contribute positively to economic growth. In the medium-term framework of the MGDS (20062011), it is expected that road interventions will contribute to reduced lead time on exports,
decreased cost of domestic trucking, lower costs of cross-border and transit trade, lower cost
to reach domestic, regional and international markets and improved mobility and connectivity
of rural communities to markets.
Key strategies under this sub-component include:
1) Providing adequate network of roads based on appropriate standards through
rehabilitation and upgrading of all weather roads to meet sub-regional agreed standards
for Sub-Saharan Africa;
2) Undertaking routine road maintenance to clear backlog through use of modified
Performance-Based Term Maintenance Contracts;
3) Building the capacity of local private sector to construct quality roads;
4) Replacing timber-deck bridges with concrete decks;
5) Maintaining urban and rural road networks;
6) Upgrading all unpaved roads from fair to good condition;
7) Involving the private sector in the monitoring and operations of road transport services;
8) Implementing appropriate road user charges;
9) Harmonizing the countrys highway code, road signs, signals and axle-load regulations
within the region;
22

10) Improving information coordination on the flow of regional and international cargo
through the development of private sector freight forwarding companies;
11) Creating one stop border post on all major transport corridors to allow for the smooth
flow of traffic and developing an integrated approach to road safety;
12) Improving policy and regulatory framework to decrease costs and increase operational
efficiency in the transport sector i.e., cabotage rules, taxation, administrative barriers,
etc.; and
13) Improving the management of priority catchment areas around transport infrastructure
facilities and facilitating implementation of any mitigation measures as may be
determined in EIA and other studies17.
2.2.2

Rail Transportation

The long-term goal is to ensure that Malawi has an efficient, affordable and effective rail
network that eases pressure from the road network and provides alternative means of
transporting both people and large volumes of cargo. In the medium-term, it is expected that
the rail sub-sector will be well managed, financially viable and sustainable thereby promoting
accessibility, affordability and reliability of movements particularly for bulky goods.
Key strategies under this sub-sector include:
I.

II.

Improving operational efficiency and commercial viability of the existing railway

infrastructure and levels of service to all users including people with disabilities at an
affordable cost; and
Promoting railway safety and environmental protection through sustainable management
practices in catchment areas around rail infrastructure such as bridges and culverts and
other environmentally sensitive areas18.

2.2.3 Linkages of the Transport Sector Concept Project to other Concept Projects
Submitted to MCC

The transport sector project concept paper has a direct linkage with the energy sector concept
paper as they all contribute to the same compact goal of promoting economic growth and
poverty reduction through increasing competitiveness of agricultural and manufactured
products. Improving transport and energy constraints will significantly impact on poverty
reduction and growth as both constraints are identified key priority areas affecting poverty
reduction and attaining sustainable economic growth as envisaged by the MGDS (2006-2011),
the Malawi Constraints Analysis report (or Growth Diagnostic Study) and the Millennium
Challenge Corporation goals.

17

Details of activities under this strategy will be available in the report of the catchment study, but for additional
activities see the MGDS (2006-2011)
18
Ibid

23

2.2.4

Reducing Environmental Damage

For both road and rail transportation, reducing environmental damage will play a significant
role in reducing surface runoff and flooding resulting in reduced wash away of structure.
Measures for achieving this include the following:
2.2.4.1 Charcoal Making and Trading

Selling of charcoal has increased significantly in recent years, estimated at an average of 230
thousand tons/year, up from 140 thousand tons/year in 1990s. Valued at ....., . . Charcoal
production is wasteful as traditional kilns are only 10% efficient and therefore a large volume of
wood is required to make a small quantity charcoal. Only a small percentage (20-30%) of the
economic chain benefits the producer, the rest enters the informal economy of middlemen and
retailers, and as a result, government loses out on tax earnings. There is need to promote
alternative and affordable sources of energy in order to reduce the increasing environmental
damage caused by charcoal making and trading.
2.2.4.2 Siltation and Flooding

In 1994, the cost of environmental degradation in Malawi was approximately US$245 million,
an estimated 11.5 % of GDP. Today, given that environmental conditions have deteriorated
further, the cost is probably higher. Siltation from cultivated areas is compounded by
inappropriate farming practices and inadequate extension messages. Addressing this problem
effectively calls for extensive reform in the protection and management of land use systems
and improvement in the enforcement of environment and natural resources management
laws. It also calls for improved extension services in some parts of the country particularly in
environmentally sensitive catchment areas in which vulnerable road infrastructure facilities are
located. (See Annex 8 for a list of bridges on the rail line vulnerable to frequent washaway).
2.2.4.3 Public Awareness

This is an important element in the promotion of sustainable land use and management
practices in catchment areas to reduce environmental damage. Special training in Community
Based Natural Resources Management and other conservation technical skills should be
provided, through academic institutions and NGOs, to farmers and other service providers.
There is also need to sensitize the general public on available alternative energy sources
(energy efficient stoves, solar panels, briquettes, etc) that should be promoted to reduce
deforestation and soil erosion which lead to increased surface runoff and flooding.

24

2.3

DESCRIPTION OF RECENT, ON-GOING OR EXPECTED INVESTMENTS IN

THE SECTOR

There are several developments that are being undertaken in Mozambique on the Beira and
Nacala Corridors.
2.3.1 Rehabilitation of the Nacala Corridor
On the Nacala Corridor, the following are being undertaken;
a). Rehabilitation of the section between Cuamba and Entre Lagos by the Concessionaire,
CDN. It is expected that the rehabilitation will be completed by September, 2009.
b). Construction of Construction of sugar terminal at the Port
c). Construction of the Liquid Bulk Storage Facility at the Port.
d). Construction of a Grain Terminal at the Port.
e). Acquisition of cargo handling equipment for the Port
f). Acquisition of new locomotives and wagons by CDN.
In addition British Petroleum (BP) Southern Africa intends to rehabilitate existing fuel terminals
at the Nacala Port. BP would like to switch from Dar-es-Salaam and Beira to the Nacala corridor
for most of their fuel imports into Malawi.
On the Beira Corridor, there are several improvements that are being made. These include the
following:
a). Acquisition of dredgers to improve access of the Beira port
b). Construction of storage facilities
2.3.2 Rehabilitation of the Sena Railway Line
The Concessionaire in Mozambique (CCFB) is currently rehabilitating the Beira rail line from
Dondo to Mutarara. The remaining section of 44Km from Mutarara to Villa Nova which borders
with Malawi is expected to be completed by September 2009.
Annex 3 outlines other recent and on-going investments that are currently being implemented
in the transport sector, categorized by program component and implementing agency.

25

III.
3.1

INVENTORY OF EXISTING PREPARATORY WORK

SECTOR STUDIES AND/OR PLANS

3.1.1 The Transport Sector Strategic Plan (Under Review)

Brief Description
The medium-term expected outcomes for the sector, as stipulated in the MGDS, include the
following:
i) Improved mobility and accessibility of the population to key road corridors within Malawi
and out of Malawi and facilitate the continued development of the countrys rural areas;
ii) By 2011, 71% of the road network will be in good condition, 18 % in fair condition with
only 11 % in poor condition;
iii) Provide a well-managed, viable and sustainable railway system that promotes accessibility
and safe, affordable, reliable movement of goods and people including the disabled; and
iv) Inland shipping network is active in local and international shipping, trade and tourism in a
safe manner while protecting the environment.
The guiding principles in this sector are driven by the sectors strategic plan which is under
review. The earlier version of the strategic plan was from 2002 to 2005. The strategic plan will
be further guided by sector policies such as the National Transport Policy (2005) and other
related acts such as the Road Traffic Act (1997), Transport Services (Railways and Airways) Act
(1997), the Inland Waters Shipping Act (Cap. 71:01), and the Roads Authority and Roads Fund
Administration Act (No. 3 & 4 of 2006).
3.1.2 Road Sector Program (2006 -2011)
In 2007, the Malawi Government, through the Ministry of Transport and Public Works (MTPW)
prepared a Road Sector Program (RSP) for the purpose of assessing the current road situation
in the country and to propose a road maintenance program for implementation within the
MGDS period (2006 2011). The RSP is a long term road infrastructure investment plan. It is
based on Government policy direction and has short- and medium-term (annual) maintenance
programmes.
Agency or Contractor that Completed the Work: WSP International Management Consulting
Source of Funding: European Union
Date Completed: 2007

26

3.2

ECONOMIC STUDIES

3.2.1 Spatial Dimensions of Growth: Maximizing Impacts of Public Investments in

Malawi
This is work-in-progress financed by the World Bank which aims to contribute to the debate on
transport costs in Malawi. The study provides new empirical evidence based on a special
commissioned survey of transport providers and spatial analysis of Malawis transport network.
The study also recognized the fact that information on road network quality, traffic demand
and transport prices were hard to come by making it difficult to separate the effects of road
densities versus quality and organization of the transport sector.
The main findings of the study include the following:
i) Infrastructure quality as well as market structure of the trucking industry are important
contributors to regional differences in transport costs.
ii) International and domestic transport markets are segmented.
iii) Rural transport costs can be lowered if government considered options of encouraging
the development of domestic small vehicle transport sector.
iv) To enhance agriculture led growth, public investments in transport infrastructure
should be prioritized towards improving feeder roads that connect rural areas offering a
combination of rich natural and economic geographies to major domestic and
international markets.
v) For manufacturing to take-off, infrastructure investments should support emerging
clusters in the countrys main urban agglomerations i.e., Blantyre and Lilongwe.
vi) Transport improvements in regions with good agronomic potential will also help
poverty reduction.
Agency or Contractor that Completed the Work: Somik V. Lall (World Bank Washington),
Hyoung Gun Wang (World Bank Washington) and Thomas Munthali (World Bank
Malawi Country Office)
Source of Funding: IDA (WB)
Date Completed: Work-in-progress
3.2.2 Transport Cost Study
In 2005, the Government of Malawi through the Ministry of Transport and Public Works - Road
Maintenance and Rehabilitation Project (ROMARP) conducted a transport cost study with
funding from the World Bank. The aim of the study was to determine the factors leading to
high transport costs in Malawi. The study, therefore, recommended several measures that can
be implemented to reduce transportation costs. These included, among others, improving
coordination through introducing private-public-partnerships (PPPs), and improving transport
information systems.
27

Agency or Contractor that Completed the Work: TERA International Group

Source of Funding: IDA (WB)
Date Completed: April 2005
3.2.3 Feeder Roads Feasibility Study
The Government of Malawi, with funding from the European Union, undertook a Feeder Roads
Feasibility Study in 2005/06. The objectives of the study were, among others, to prioritize road
works interventions needed on rural secondary, tertiary and district feeder roads, based on
economic and social criteria. Among the findings, the study revealed important links between
feeder roads and agriculture. The study concluded that improving their condition will:
a). Increase farm gate output prices by decreasing transport costs to the major market
centers in which market prices are established.
b). Decrease farm gate input prices for the same reasons as in i) above.
c). Increase yields through agricultural extension activities such as agricultural knowledge
and increasing accessibility to the hinterland.
Agency or Contractor that Completed the Work: HYDRATEC Consortium
Source of Funding: European Union
Date Completed: June 2006

3.3

SUPPORTING TECHNICAL DATA

3.3.1 HDM-4 Transport Database

In 2005, the Ministry of Transport and Public Works installed new software that collects road
infrastructure data. The HDM-4 database can be used to analyze the economic potential of new
road infrastructure in Malawi and calculates ENPV and EIRR based on direct user benefits,
direct economic or social benefits and indirect benefits.
Agency or Contractor that Completed the Work: Roads Authority (RA)
Source of Funding: Government of Malawi and World Bank
Date Completed: Continuous

28

3.4

PRELIMINARY STUDIES

3.4.1 Malawi Transport and Road Sector Project Formation Study

In 2007, the Malawi Government with assistance from the Japanese International Development
Agency (JICA) conducted a transport and road sector project formation study that looked at all
key transportation modes in the country and identified the major constraints facing each
transportation mode. The purpose of the study was to look at the status quo of major
transportation and traffic infrastructure (main roads, major secondary roads, railways, lake
transportation and airports) by analyzing existing materials and additional field studies. These
constraints have been utilized to describe the extent of the problems faced in the transport
sector. Furthermore, the study collected information that would contribute to the design of
programs based on JICA support schemes (technical cooperation on projects, development
research, general grant aids, and use of volunteers from Japan).
Agency or Contractor that Completed the Work: Construction Project Consultants Inc., Mitsui
Consultants Company Limited, OAFIC, Nippon Koei Company Limited, Task Associates,
Yachiyo Engineering Company Limited, JICA-Malawi
Source of Funding: JICA Malawi
Date Completed: 2007
3.4.2 Establishment and Implementation of Multi-Sector Regulatory Authorities:
Draft Final Report
The study was commissioned by Government to assess how Government can harmonize
regulatory frameworks in the country based on the principles of competition policy, regulatory
practices and associated institutional arrangements across Malawis key infrastructure sectors
(energy, communications, water and transport). The study also evaluated the pros and cons of
accomplishing these objectives through the merger of existing regulators to create one or more
multi-sector regulatory bodies (MSRs).
One of the recommendations made was to create the Transport Regulatory Authority
(TransRA). The study was, therefore, required to: i) finalize the organizational design of each
MSR and assist with staffing process; ii) define staffing roles and internal regulatory processes;
iii) draft an appropriate legal framework; and iv) assist with the establishment of an Appeals
Tribunal.
Agency or Contractor that Completed the Work: TRC Global Management Solutions, LP
Source of Funding: PPIAF under World Bank for NWDP II
Date Completed: September 2006

29

3.4.3 Design and Preparation of Tender Documents for the Chiromo Washaway
Replacement Structure
The study was commissioned by the National Roads Authority in 2002 with the aim of assessing
the hydrological, hydraulic and engineering problems for both road and rail infrastructure at
Chiromo caused by flooding of the Shire River upstream of the railway embankment extending
from Bangula to Makhanga. The objective of the study was to formulate solutions through
developing preliminary and detailed designs that were supposed to be carried out to address
the problem and the preparation of tender documents for International Competitive Bidding
(ICB).
Agency or Contractor that Completed the Work: Civil and Planning Partnership
Source of Funding: National Roads Authority
Date Completed: May 2002
3.4.4 Status of the Malawi Railways and Overall Reinvestment Scheme
The study was commissioned by the European Union in February 2009 through GOPA
worldwide consultants. The objective of the study was to assess the status of the railways in
Malawi particularly the viability of rehabilitating the Nacala corridor. The study revealed that
the railway in Malawi was old and required track renewal in some sections and network
rehabilitation of bridges, substructures and drainage. Preliminary costs estimates were
calculated and have been used to form the basis of the railway project proposals in the concept
paper.
Agency or Contractor that Completed the Work: GOPA Worldwide Consultants
Source of Funding: European Union
Date Completed: April 2009

3.5

FULL FEASIBILITY STUDIES

Full feasibility studies for road and rail transport projects have not been conducted.

3.6

DETAILED BUDGETS

Total estimated costs for the different outcomes are based on current market prices. Other
estimated costs such as for outcome three (3) are based on the Multi-Sector Regulatory Study
which was conducted in 2007.

30

3.7

ENVIRONMENTAL AND SOCIAL IMPACT ANALYSES

All the roads and rail way projects have been screed to determine if environmental and social
impact studies will be required and the status is provided in section (v). Environmental and
Social Impact studies, if required, will be conducted during the time feasibility studies for
projects in the compact are conducted.

3.8

RESETTLEMENT ACTION PLANS (RAPs):

Some projects in the transport sector will require Environmental Management Plans and
Resettlement Action Plans particularly for the rail transportation projects which currently face a
lot of encroachments. In addition, some portions of the road projects also include
encroachments within the road infrastructure right of way. These will be prepared when
feasibility studies for the projects are conducted.
Agency or Contractor that Completed the Work: To be Confirmed
Suggested Source of Funding: 609(G)/PPIAF
Date Completed: Yet to be completed

3.9

GENDER ANALYSES:

The Government of Malawi through the MGDS recognizes the role gender plays in the
development of a country. The current policy is to ensure that the participation of women in
key decision making positions increases to an average of 50%. The Department of Human
Resources Management and Development (DHRMD) has developed guidelines on gender
mainstreaming that will facilitate gender activities in the public sector. The aim of the
guidelines is to accelerate the process of mainstreaming gender in human resources
considering its crucial role in Malawis development process. However, no studies have been
undertaken to assess the extent of gender participation. A gender analysis study will need to be
carried. The GoM will submit a request for MCC funding under 609(g) for a study on the impact
of the concept projects on gender issues.

3.10 PUBLIC CONSULTATIONS

The Millennium Challenge Account (MCA) Malawi Country Office Secretariat conducted a
series of public consultations to identify the key problems affecting infrastructure services in
the country. The Growth Diagnostic Study (or Constraints Analysis) identified infrastructure as
the dominating factor affecting poverty reduction and sustainable economic growth in Malawi.
The consultative process commenced in August 2008 and was completed in December 2008.
These consultative processes included rural consultations.

31

The MCA Malawi Country Office conducted two national stakeholder consultative meetings,
40 technical consultative meetings, 7 rural consultative meetings. The key stakeholders
consulted include Government, District Officials, Chiefs and rural communities, Clearing and
Forwarding Agents Association, Road Transport Associations, Farmers Associations, Central
East African Railways and the Civil Society. For the transport sector, high transportation costs
was identified as the binding constraint to poverty reduction and sustainable economic growth
as a result of a poorly functioning road systems, unreliable and inefficient rail system, and an
unexploited marine transportation system.
Agency or Contractor that Completed the Work: MCA Malawi Country Office Secretariat
Suggested Source of Funding: Malawi Government
Date Completed: December 2008

3.11 PLANS FOR ADDITIONAL STUDIES TO DEVELOP CONCEPT PROJECT

3.11.1 Information Gaps

The development of the transport project concept paper faced a number of data inadequacies
particularly in developing the program logic in terms of identifying project indicators. The MCA
Malawi Country Office Secretariat team is currently reviewing the information gaps for the
baseline information. The Mzuzu Nkhatabay road and the Cape Maclear Monkey bay rural
feeder road which have complete feasibility and ESIA studies. The other two roads will require
full feasibility and ESIA studies to be conducted which are proposed to be funded under the
609 (G).
Furthermore, in order for the regulatory outcome to become effective, it is proposed that the
financing of the drafting of the transport regulation bill should be financed through the 609 (G).
Once this activity is completed, the implementation of the regulatory outcome will be smooth
with backing from parliament.
On the other hand, the calculation of economic rates of return and net present values for road
transport projects lacks some data on identifying the impact of private sector involvement and
developer contributions along the proposed infrastructure projects. These are known impact
areas are important to assessing the full impact of road transportation projects to both poverty
reduction and economic growth. Furthermore, the constraints analysis identified sales losses
and frequent use of generators as the major costs associated with unreliable electricity and
thus poses considerable savings once the energy sector becomes more reliable. A study is,
therefore, required to indentify these contributions which will subsequently be part of the
monitoring and evaluation component of the project.

32

3.11.2 Catchment Study

Improved natural resources management of priority micro-catchments offers the best practical
option to sustain the transport sector investments especially in areas where transport
infrastructure facilities are located. Realizing the dynamic nature of the catchments, this shall
be achieved through a comprehensive study and analysis of biophysical baseline data, socialeconomic and human influences in the catchment areas. This will allow for an integrated and
more holistic approach to the NRM problems leading to the development and implementation
of site specific interventions in the priority catchments.
One micro-catchment shall be selected either in the Shire river systems or in the Lake Malawi
river systems. Drivers, problems, effects and impacts of unsustainable management practices
shall be determined. The final recommendations and conclusions of the study shall be the basis
for restoration, monitoring and sustainable management of natural resources in selected
catchment areas in which transport projects supported by MCC shall be implemented.

33

IV.

PROJECT BENEFITS AND BENEFICIARIES

The road and rail transportation interventions are expected to increase efficiency and
competition among rational economic players in the transport sector by ensuring reduced and
competitive transportation costs within the country and the region. The economic and social
benefits that come with transportation projects are vast and the project concept paper could
not consider each and every benefit but to base the analysis on key direct user and economic
benefits. Though key social (or external) benefits such as health and property benefits are
important, they have been excluded from the analysis due to the possibility that they can be
generated from other uses (such as a water project or increase in income leading to increase in
property values).
Furthermore, the lack of data in key sections of the beneficiary analysis is also a constraint and
the analysis was unable to estimate key parameters such as accident costs, user charges,
private sector provider impacts and other developer contributions. However, this will depend
on the results of the baseline survey to be conducted in identifying these contributions. The
lack of market prices on environmental impacts such as air pollution has necessitated
evaluating environmental effects based on a qualitative analysis. However, a calculation of the
NPV of the environmental effects is calculated and will be presented in the report.
Since each transport project is located in different locations and geographical areas, each
project was considered separately to calculate individual ENPV and EIRR based on the
surrounding population and economic activities in their surroundings. The next section
highlights the major contributions that each project will make towards sustainable economic
growth and poverty reduction in the country.

4.1

KEY ASSUMPTIONS UNDERLYING ESTIMATES OF INCREMENTAL COSTS

AND BENEFITS

The calculation of incremental economic costs and benefits is based on effective demand,
direct user benefits and direct economic benefits.
4.1.1 Key Economic Analysis Assumptions for the Calculation of Incremental Economic
Benefits

General Assumptions
1) The future development of traffic flows for both road and rail projects depend on the
general economic development of the country. On the economic front, it is assumed that
the average annual traffic growth (for both passengers and freight) is 6% per annum, which
is the predicted average real GDP growth in Malawi and the Sub-Saharan region (MGDS,
2006-2011).

34

2) Taxes related to beneficiaries are kept at the present level of 16.5% and fares as well as
value of time calculations follow the development in GDP.
3) The projections are based on constant 2008 Malawi Kwacha to the US Dollar exchange rate
projected at MK140.00/US$.
4) Road construction costs are estimated at US$200,000 per km and US$60,000 for rail
rehabilitation.
5) Physical contingency is estimated at 20% of all construction costs. In addition, price
contingency is estimated at 5% of total project costs.
6) A project life-span of 20 years is assumed for road transport projects and 30 years for rail
transport projects, with an additional five-year investment period.
7) In terms of investment costs, the MCC will finance all project costs. It will also finance
capacity building activities and project management.
8) The number of beneficiaries is simulated based on population density per district using data
from the 2008 Population and Housing Census preliminary report. Immediate beneficiaries
are assumed to live within a 5 km radius for road transportation projects.
9) The minimum wage in Malawi is assumed to be MK200/day or US$1.43/day19.
10) Average hours of work are assumed to be 8.5 hours per day and the minimum wage per
hour is US$0.1681/hour.
11) Benefits start accruing from year five (5) for roads and year seven (7) for rail transportation.
Road Transportation Assumptions
12) Value of Time (VOT) estimates are based on work- and non-work time. The latter is
assumed to be 25% of the work-time20. Based on assumption 5) and 6) above, non-work
time is given as US$0.042/hour.
13) Vehicle Operating Cost (VOC) savings are calculated based on various feasibility studies
conducted by the Roads Authority in Malawi and depends on the type of vehicle 21.
14) It is assumed that a time saving on a new road transport project is thirty (30) minutes (0.5
hours) per one (1) hour traveled on an unpaved road. Also we assume that it will take
roughly two (2) hours to travel 60 km on an unpaved road and one (1) hour on a paved
road.
15) Based on rational utility maximization theory, it is assumed that the surplus time may go
towards income generating activities for this segment of the population (53%)22. Total
hours saved for each road segment in this case is equivalent to its distance (e.g., for MzuzuNkhatabay road with a 47.0 km, users save 47 minutes per trip).

19

Average wage per individual is based on the Public Works Program implemented by the Ministry of Transport
and Public Works.
20
Value obtained from a study conducted by Goodbody Consultants (2004).
21
Roads Authority
22
According to the PHC (2008) those eligible to work represent 53% of the population.

35

Rail Transportation Assumptions

16) Quantified benefits as a result of the project include the following items: benefit in value of
time costs; benefit of train operation costs (TOC); benefit of maintenance costs; and benefit
of accident costs.
17) Current operational speeds along the project section are 20 km/h for both freight and
passenger trains. The objective of the project is to increase the operational speeds to an
average of 60 km/h for passenger trains and 50 km/h for freight trains.
18) Market prices for road and rail transportation are obtained from base rates calculated by
the Malawi Cargo Center Limited (MCCL).
19) Projected growth rate of cargo for rail is at 6% per annum with project scenario (see
assumption 1). Accrued benefits from cargo in year 7 are based on predicted average cargo
volumes for 2016 without project scenario.
20) Transport impacts on the environment particularly from road savings are also calculated for
three major air pollution contributors particulate matter emissions (PM2.5), nitrous oxide
(NOx), and emissions from carbon dioxide (eCO2). Base emission factors are obtained from
an international survey that gives commuter challenge emission calculations as follows:
PM2.5=0 g/km, NOx=1.1467 g/km and eCO2=224.84 g/km23.

4.2

ECONOMIC ANALYSIS RESULTS

4.2.1 Economic Activities for Road Transport Projects

4.2.1.1 Mzuzu Nkhatabay Road
The road passes through an important agricultural area where different types of crops are
grown. These include coffee, tobacco, maize, cassava, rice and bananas. It also forms part of
the main corridor connecting the northern region to the Dar-es-Salaam corridor. The road is
situated in Nkhatabay district which has a population of 213,779 and a population density of 53
per square kilometer. The rural population in Nkhatabay has the highest poverty rate of 54%
whilst 23% are ultra poor (Welfare Monitoring Survey, 2007).
4.2.1.2 Lirangwe Machinga Rural Feeder Road
This road is situated in Zomba district with an estimated rural population of 583,167 and a
population density of 230 per square kilometer. This is mainly an agricultural area that grows
crops such as tobacco, cotton, maize, sorghum sweet potatoes, pigeon peas, rice and cassava.
The average number of people below the poverty line is currently estimated at 50% while 20%
are ultra poor (Welfare Monitoring Survey, 2007). The lack of appropriate road infrastructure
encourages smallholder farmers to cultivate subsistence crops in order to sustain themselves
during periods of need (usually from November to February).
23

Data retrieved from the Commuter Challenge website.

36

4.2.1.3 Linthipe Lobi Rural Feeder Road

The road is located in Dedza district which has an estimated population of 623,789 and a
population density of 172 per square kilometer. The main agricultural crops grown within the
project area include tobacco, maize and millet. About 44% of the rural population are poor and
14% ultra poor (Welfare Monitoring Survey, 2007).
4.2.1.4 Cape Maclear Monkey bay Rural Feeder Road
The road is located in Mangochi district which has a population of 803,602 and a population
density of 128 per square kilometer. The main economic activities for the rural population are
mainly fishing but in other parts they grow agricultural crops such as tobacco, groundnuts and
cotton. The area is also a key tourism site that includes sanctuaries, safaris, game lodges and
wildlife tours. About 48% of the population in the district are poor while 19% are ultra poor.
4.2.2 Economic Activities for Rail Transport Projects
The railway infrastructure in Malawi passes through key agricultural areas (see figure 5)
connecting two major cities of Blantyre and Lilongwe. The central region is mainly the
backbone of tobacco growing whereas tea, coffee and cotton are mainly grown in the southern
region. Malawi used and still uses the railway to transport bulky commodities to the sea.
Malawi usually exports, among others, tobacco, tea, sugar, coffee, cotton and pigeon peas
through Nacala (rail) and Beira (road) ports and imports fertilizers, fuel and general cargo
through Nacala. Currently Beira handles over 60% of Malawis cargo and it is expected that
traffic will be diverted to Nacala once the route is functional.
Rail transportation is also an important mode of transport for rural farmers who usually use the
train to move their farm produce to main markets in the cities or trading centers. Such
commodities include tomatoes, pigeon peas and other vegetables. In 2006, CEAR recorded
approximately 480,000 passengers moved largely from smallholder farmers. Since 2000, CEAR
moved over 250,000 tons of local products to main markets locally but has been experiencing
reduced usage by the locals to transport their commodities using rail transportation.
4.2.3 Road and Rail Transportation Results
4.2.3.2 Road Transportation
Table 7 is a summary of the calculated ENPV and EIRR for road transportation. All road projects
have significant economic net present values (ENPV) and economic internal rates of return
(EIRR) above the 12.5% hurdle rate for Malawi. The Mzuzu Nkhatabay high volume road has
an ENPV of US$150.8 million and an EIRR of 57.2%. The Lirangwe - Namatunu Machinga rural
feeder road has a calculated ENPV of US$57.7 million with an EIRR of 43.5%. The Linthipe Lobi
rural feeder road has a calculated ENPV of US$8.6 million with an EIRR of 29.2%. Lastly, the

37

Cape Maclear Monkey bay rural feeder road has an ENPV of US$5.6 million with an EIRR of
29.4%.
4.2.3.3 Rail Transportation
The ENPV and EIRR for rail transportation are calculated based on value of time (VOT) and Train
Operating Costs (TOC). This is assumed to improve once the rail track is more reliable to
transport bulky commodities in and out of the country. The total economic benefits for both
freight and passenger services show that the ENPV is US$232.7 million with an EIRR of 25.5%.
Table 7: Calculated ENPV and EIRR for Road and Rail Transportation
Project Type
Mzuzu - Nkhatabay Road
Lirangwe Machinga RFR
Linthipe - Lobi RFR
Cape Maclear RFR
Rail Transportation

4.2.4

Calculated ENPV (12.5%)

EIRR
Calculated ENPV (12.5%)
EIRR
Calculated ENPV (12.5%)
EIRR
Calculated ENPV (12.5%)
EIRR
Calculated ENPV (12.5%)
EIRR

100%
$150,811,998
57.2%
$57,699,344
43.5%
$8,555,313
29.2%
$5,649,229
29.4%
$232,696,586
25.5%

Certainty Equivalent
90%
85%
$134,020,860 $125,625,292
53.9%
52.2%
$50,945,385
$47,568,405
40.9%
39.6%
$7,342,580
$6,736,213
27.4%
26.4%
$4,842,865
$4,439,682
27.5%
26.5%
$200,630,933 $184,598,107
24.1%
23.4%

75%
$108,834,154
48.5%
$40,814,447
36.8%
$5,523,481
24.4%
$3,633,317
24.4%
$152,532,455
21.9%

Transportation Impacts on the Environment

Transportation impacts on the environment have been assessed for rail transportation. The air
pollution savings of the diverted traffic from road to these networks has been calculated. Table
9 is a summary of the net present values (NPV) for each emission factor for rail transportation
mode:
Table 8: Summary of Environmental Impacts for Rail Transportation Networks
Project Type
Emission Factor
Unit
NPV

Rail Transportation

NPV (PM2.5)

kg/km

NPV (NOx)

kg/km

44

NPV (eCO2)
NPV (Total on Emissions)

kg/km
kg/km

8,720
8,764

For rail transportation, it is assumed that the savings from heavy goods vehicles on an annual
basis commuting on roads has an NPV of 44 kg/km of NOx and 8,720 kg/km for eCO2. Total
emissions saved are, therefore, 8,764 kg/km on all emission factors.

4.3

POSSIBLE MONITORING INDICATORS FOR PROJECT OUTCOMES

Annex 6 outlines the summary contents of possible monitoring indicators for the compact goal,
project objective, project outcomes, outputs and activities using the program logical
framework analysis.
38

4.4

DESCRIPTION OF TARGET BENEFICIARIES

Currently, transport projects are envisaged to target mainly rural communities and existing and
potential businesses in the country. Due to lack of data on farming families in each district that
are within the project area, a simulation is made to estimate the number of people living along
or within the vicinity of each road project area. This calculation is based on population densities
for each district obtained from the latest Population and Housing Census for Malawi carried in
2008.
Beneficiaries for rail transportation are based on passenger and cargo volumes projections for
each transportation mode obtained from the operators. However, it is difficult to separate
business categories due to lack of data.

4.5

ANTICIPATED CHANGES IN AVERAGE ANNUAL INCOME: POOR AND NONPOOR BENEFICIARIES

The transport sector project concepts are expected to overcome major infrastructure problems
faced in transporting economic goods and services in the country. The creation and sustenance
of a continuous, reliable and efficient multi-modal transportation system is expected to
increase competition in transport service delivery thereby increasing the contribution that the
manufacturing sector makes towards exports and increased employment. Currently, the
manufacturing sector is small and output has stagnated over the past years due to these major
infrastructure constraints.
Once such key investments are developed, the private sector is expected to contribute
significantly towards Malawis economic growth and development through the manufacturing
sector by ensuring that real GDP growth rate averages 6% per annum over and beyond the
MGDS implementation period (2006-2011). The magnitude of the contribution from these
investments is envisaged to increase the level of public assets available to the poor for their
economic welfare enhancement, empowerment and food security.
The economic contribution of road and rail transport infrastructure investments are diverse
and are expected to contribute to the reduction of the number of people living below the
poverty line by more than 8.0% and decrease those under extreme poverty based on
consumption by a projected rate of 5.0% by 2011. Furthermore, this is expected to contribute
to increasing Malawis GDP or income per capita from US$170 to an average of US$450 by 2011
(MGDS selected output, outcome and impact indicators).

39

V.

ENVIRONMENTAL AND SOCIAL RISKS

5.1

ENVIRONMENTAL IMPACT ASSESSMENT REGULATORY FRAMEWORK

The Malawi government adopted both the Environmental Policy and Environmental
Management act in 1996 to provide guidance and set standards for the development of sector
policies in environment and to promote the sustainable use and management of the
environment and the conservation of natural resources.
Among other provisions, the Act established the Department of Environmental Affairs as the
government watchdog to coordinate implementation of environment and natural resources
programs in Malawi through the National Council for the Environment (NCE) and the Technical
Committee on the Environment (TCE). The Council is composed of sector representatives and
acts as the advisory body to the Minister while the Technical Committee gives technical advice
and information to enable the NCE to give informed advice to the responsible Minister.
The Act also provided for the EIA process which requires that potential environmental
consequences of major development projects be identified and considered before project
activities are undertaken. To facilitate this process, EIA guidelines were prepared and adopted
in Malawi in 1997.
The Environmental Policy was revised in 2004 and provides for the establishment of an
autonomous Environmental Protection Agency (EPA) because there are limitations for the
Department of Environmental Affairs, which is legally mandated to coordinate environmental
matters, to compel fellow departments to comply with relevant NRM policies and legislation.
The EPA will have adequate political visibility and authority to compel compliance and
enforcement with applicable NRM laws and policies. The Environmental Management Act has
been revised and provides a legal framework for the establishment of the Environmental
Protection Agency. It is now awaiting government and parliamentary approval.
All the selected road projects were thoroughly screed to determine if Environmental and Social
Impact Analyses were conducted and the status is as follows:

5.2

ENVIRONMENTAL AND SOCIAL IMPACTS FOR ROAD TRANSPORTATION

5.2.1

Mzuzu-Nkhata Bay Road Rehabilitation

The road largely passes through existing route with minor realignments. ESIA was conducted
and an abbreviated Resettlement Action Plan was produced by Henderson and Partners in
November, 2008.

40

5.2.2

Linthipe-Lobi Rural Feeder Road Upgrading

The road is 27 Km long and will pass through at least two major trading centers namely:
Malirana and Lobi, which have permanent structures and settlements. Should there be more
than 50 permanent structures to be demolished; a resettlement Action Plan will be required.
The road may require large quantities of gravel to be hauled from selected sites along the
project because the soils in the area are predominantly black cotton soils that is,
montimorrilonites soils. Major rivers requiring construction of permanent bridges include
Thete, Msundudzi and Linthipe. Proper protection and management of the catchment areas of
these rivers will be necessary to ensure infrastructure sustainability. The road will follow
existing alignment and therefore only an Environmental Management Plan will be required and
not a full Environmental Impact Assessment Study.
5.2.3

Monkey Bay-Cape Maclear Rural Feeder Road

The road will follow the existing alignment. An ESIA was prepared by Gauf, Ingenieure and
Laudon International in October, 2005 under the Lakeshore Infrastructure Support Program.
5.2.4

Lirangwe - Chikwenga - Machinga Road

The road will require considerable amount of gravel but will follow the existing alignment with
minimum impact on building and other infrastructure. An Environmental Management Plan
(EMP) will therefore be required and not a full Environmental Impact Assessment. Preparation
of the EMP for all the road projects will be undertaken prior to the implementation of the
projects to ensure that appropriate mitigation measures are put in place to address
environmental problems arising from civil constructions.

5.3

ENVIRONMENTAL AND SOCIAL IMPACTS FOR RAIL TRANSPORTATION

The project will contribute greatly to easing environmental pressures of road transport since
the railway provides a safe and environmentally friendly means of transport. Currently in
Malawi, road transportation market share exceeds that for rail and the number of heavy goods
vehicles is increasing making it difficult for the current roads to sustain the pressure especially
at peak hours. This results in a poor environmental performance of the transport system of
which section IV has already shown the increasing emissions of NOx, eCO2 and particles.
The potential environmental effects of rail transport for people living in the vicinity of the
railway tracks comprise of noise pollution, vibration, dust, solid and liquid waste. However, the
positive effects of the reduced heavy road traffic should by far outweigh the negative effects of
the increased rail traffic.
During the rehabilitation phase, the project will have no environmental implications related to
the disposal of old equipment as no new structures are built and the alignment is maintained.
Only ballast and re-sleepering material may have environmental implications during the
41

rehabilitation phase. Replaced ballast material cannot be simply disposed of along the railway
lines. Wooden sleepers will be stored at the CEAR storage facility and will be used later for
possible construction of secondary lines. They will not be burnt due to the content of heavy oil.
For areas that will require construction such as the Chiromo Bridge, which has been constantly
affected by flood water or blockade by siltation will require re-alignment. The bank and other
embankments at washed away sites will require large amounts of gravel and catch-water drains
and side drains will need to be reinstated to avoid track wash away and general erosion of the
track formation. In some areas, the rail reserves were invaded by villagers who are cultivating
very close to the tracks and will need to be removed by Government. Environmental and Social
Impact Assessments will, therefore, be required for some projects under the rail transportation
routes.

5.4

WATERSHED MANAGEMENT

The problems of siltation and flooding affecting the transport sector have potentially arisen
from poor protection of the catchment areas in the Lake Malawi and Shire river systems. These
problems are widely linked to changing land use and management practices in the catchment
areas.
It should, however, be noted that improved catchment management policy entails recognizing
that environment and natural resources protection requires political will, stakeholder
commitment and adequate resources. In addition, it must be recognized that the desired
poverty impacts may not be achieved in the shortest possible time. This investment will,
therefore, need to be complimented by activities that enable the establishment of
demand/productive uses, rural uptake and ability to pay.
Catchment protection and improved land use management practices will thus have major
benefits to the transport sector in Malawi through reduction in maintenance costs and other
costs that are currently necessary to ensure the continuous operations of the transport
infrastructure.

5.5

HIV AND AIDS

The rehabilitation of the roads and rail lines may have a bearing on the propagation of
HIV/AIDS and other infectious diseases especially during construction. After rehabilitation,
there may be a possibility of population increase, rural settlement, social infrastructure
(schools, small produce markets, communication facilities, etc.) along the transport
infrastructure. Mitigation measures will be provided in the EIA reports to be produced for the
projects.

42

VI.

PROJECT SUSTAINABILITY

6.1

OPERATION AND MAINTENANCE FINANCIAL

The Malawi Government has an independent institution that oversees operation and
maintenance of all road infrastructures in the country. The Roads Authority is responsible of
such rehabilitation activities and will continue to service all new projects implemented in the
country. Road operation and maintenance works are directly financed by Government through
the Road Fund Administration who are responsible for collecting funds from fuel levy (on
average 13% per liter of fuel) and road transit charges (currently at US$15 per 100 kms).
In addition, rail services in the country are concessioned to private operators who are
responsible for technical and commercial management and operation of freight and passenger
transportation services. Furthermore, the concessionaires are responsible for the operation
and maintenance of concession assets, contractual agreements with customers and collecting
revenues attributable to the transport of freight and passengers services. The establishment of
a Transport Regulatory Authority (TransRA) through the MCC compact will ensure the efficient
operation of both road and rail services in the country through compliance monitoring,
planning and enforcement of rules and regulations.

6.2

OPERATION AND MAINTENANCE INSTITUTIONAL

The existence of a concessionaire for rail transportation is currently under review and will be
efficiently managed when an Asset Holding Company is created and further the TransRA is
established and mandated to oversee the operations of the concessionaire or operator in the
country. Investments to promote private sector participation, which is part and parcel of the
TransRA operations under the MCC project, are expected to increase private sector
involvement in the transport sector.

6.3

TARIFF AND USER FEES

Operation and maintenance expenses for road and rail infrastructure are usually financed
through the collection of road (fuel) levies, road transit charges and concession fees. The
creation of a Transport regulator is envisaged to increase the efficiency of tariff and user fees
collection in the transport sector.

6.4

LEGAL AND REGULATORY ISSUES

Legal and regulatory issues are important for the transport sector for it to be a viable option
and for private players to be involved. This will require a strong regulatory framework that is
able to attract investments into the sector particularly for rail transportation. The current
investments under the MCC project are envisaged to promote such behavior in the sector by
introducing a transport regulator who will be responsible for overseeing operations of
43

concessionaires such as regulating financial resource allocation, operational efficiency, and

user-fee setting and adjustment.
In 2007, the Government of Malawi commissioned a study on the establishment and
implementation of multi-sector regulatory authorities. The study looked at the organizational
design, defined required staffing roles and internal regulatory processes, legal frameworks and
procedures of establishing an Appeals Tribunal for each multi-sector regulatory authority. The
establishment of a TransRA emanates from this report and in order to facilitate this process,
the Ministry of Transport and Public Works are expected to proceed with the preparation of a
law by drafting a bill that will mandate the creation of a Transport Regulatory Authority in the
sector. This bill will be passed by parliament and preparations of such activities are suggested
to be finance through the 609(G). The Ministry of Transport and Public Works will facilitate the
development of terms of references for consultancy services of a Draughts person who will be
responsible for drafting the Transport Regulation Bill.
Land tenure problems for the transport projects will be assessed when conducting the
Environmental and Impact Analysis studies.

44

VII.

IMPLEMENTATION ARRANGEMENTS

7.1

PROPOSED IMPLEMENTATION ARRANGEMENTS ORGANISATIONAL

CHART

The responsibility of implementing transport projects rest with the Ministry of Transport and
Public Works, the Roads Authority and District Assemblies. The Ministry is expected to contract
consultants and contractors to assist with planning, feasibility studies, design, capacity building,
construction supervision services, works and suppliers. Annex 4 outlines the proposed
organizational chart for the Ministry of Transport and Public Works and the Roads Authority.

7.2

DESCRIPTION OF IMPLEMENTING ENTITIES

The Ministry of Transport and Public Works with its departments and agencies will be
implementing the project as follows:
i)

Road Construction and Rural Feeder Roads Program: The Roads Authority (RA)
implements road projects. It hires contractors for the maintenance, construction,
rehabilitation of road projects.
ii) Rail Transportation: The Corridors Secretariat Unit is responsible for the implementation
of railway and other corridor activities. It hires contractors for the actual works.
The institutions outlined above do the monitoring and evaluation of the works being carried
out. The Ministry and its departments have the necessary qualified personnel to oversee the
works. However, cases of roads the works proposed will be conducted in the various districts
and in view of the decentralization policy, the District Assemblies are involved. The roles of the
various entities are described below in detail:
7.2.1 Ministry of Transport and Public Works (MTPW)
The role of the Ministry is to ensure the provision of a coordinated transport environment that
is safe, reliable, cost-effective and environmentally friendly. The Ministry has got several
departments namely; Marine, Roads, Civil Aviation, Road Traffic, and Plant and Vehicle Hire
Organization.
7.2.2 Roads Authority (RA)
The role of the Roads Authority is to provide accessibility by ensuring that the road network is
well developed and maintained up to a standard where all motorized and non-motorized traffic
can reach every society of the country in adequate, safe, reliable, efficient, economic and
environmentally friendly manner at all times of the year.

45

7.3

PAST EXPERIENCE FOR IMPLEMENTING SIMILAR PROJECTS

The Ministry of Transport and Public Works in collaboration with its departments and agencies
have been implementing other similar projects related to the ones being proposed in the
project concept paper. The Roads Authority has implemented donor funded projects such as:
Construction of the Masasa Golomoti - Monkey Bay road (EU), rehabilitation of Lilongwe city
roads (EU) and replacement of M5 bridges (JICA). Furthermore, the Ministry implemented the
Northern Corridor Project that was co-financed by the Government of Malawi in collaboration
with other partners (World Bank, USAID, Netherlands, EU, and Germany). As for the rail subsector, the OPIC loan was used for the rehabilitation of the rail line.

7.4

IMPLEMENTATION TIMELINE

Annex 5 outlines the implementation timeline to complete the four (4) infrastructure outcomes
for road and rail transportation projects, the regulatory and environmental interventions. It is
expected that all projects will be implemented concurrently and will take not more than five
years to complete.

7.5

PLANS FOR LONGER TERM PROJECT ACTIVITIES

The Malawi Government is keen to take over the implementation of such infrastructure
projects and the responsibility of the Ministry of Finance will be to ensure that such projects
are completed even if it goes beyond the five-year compact agreement.

46

VIII.

ANNEXES

BIBLIOGRAPHY
Goodbody Economic Consultants (2004), Cost Benefit Parameters and Application Rules for
Transport

Project

Appraisal,

retrieved

from

http://

www.transport.ie/upload/general/5830-1.pdf
Lall, S. V., Wang, H. G. and Munthali, T., Spatial Dimensions of Growth: maximizing impacts of
public investments in Malawi, work-in progress
Malawi Government, Annual Economic Report Series: 1980 2008, Government Print,
Lilongwe
Malawi Government, Competition Issues in the Transport Sector in Malawi: passenger services
and haulage, submitted to the Malawi Competition and Fair Trading Commission,
October 2007
Malawi Government, Establishment and Implementation of Multi-Sector Regulatory
Authorities: Draft Final Report, submitted to the Privatization Commission, September
2006
Malawi Government, Inland Waters Shipping Act (No. 71 of 2001)
Malawi Government, Malawi Growth and Development Strategy: From Poverty to Prosperity,
2006-2011,
Malawi Government, Malawi Transport Cost Study, submitted to the Ministry of Transport
and Public Works, April 2005
Malawi Government, Malawi Transport and Road Sector Project Formation Study Report,
submitted to the Ministry of Transport and Public Works, 2007
Malawi Government, National Transport Policy, 2005

47

ANNEX 1: MALAWI EXPORTS AND IMPORTS WITH MAJOR BLOCS AND COUNTRIES (FORWARD FORECASTING)

EU Imports

500
y = 4E+06x2 - 2E+07x + 2E+08
R = 0.7003

400

Millions

Millions

EU Exports
350

y = 3E+06x2 - 1E+07x + 1E+08

R = 0.8137

300
250

300

200

200

150

100

100

50

0
1998

2000

2002

2004

EU Exports

2006

1998

Poly. (EU Exports)

2000

EU Imports

100
628408x2

- 5E+06x + 4E+07
R = 0.2116

Millions

Millions

2004

2006

Poly. (EU Imports)

US Imports

US Exports
y=

2002

50
y = -192339x2 + 6E+06x - 2E+06
R = 0.8756

40
30
20
10

1998

2000
US Exports

2002

2004

2006

Poly. (US Exports)

1998

2000

2002

US Imports

2004

2006

Poly. (US Imports)

48

RSA Imports

250
y = 2E+06x2 - 6E+06x + 5E+07
R = 0.7899

200

Millions

Millions

RSA Exports

150

600

y = 4E+07x + 7E+07
R = 0.8728

500
400
300

100

200

50

100

1998

2000

2002

RSA Exports

2004

2006

1998

Poly. (RSA Exports)

y=
R = 0.2929

60

2004

2006

Linear (RSA Imports)

SADC (no RSA) Imports

Millions

Millions

3E+07x0.4146

2002

RSA Imports

SADC (no RSA) Exports

80

2000

700
y = 5E+06x2 - 1E+07x + 5E+07
R = 0.8857

600
500

400

40

300
200

20

100
0

0
1998

2000

2002

SADC (no RSA) Exports

2004

2006

Power (SADC (no RSA) Exports)

1998

2000

2002

SADC (no RSA) Imports

2004

2006

Poly. (SADC (no RSA) Imports)

49

ANNEX 2: MAPS SHOWING PROPOSED ROAD TRANSPORTATION SITES IN MALAWI

50

51

52

53

ANNEX 3: DESCRIPTION OF RECENT, ON-GOING OR EXPECTED INVESTMENTS IN THE SECTOR

Scope

Programme

Project Name

Infrastructure
Development

ChitipaKaronga road

Infrastructure
Development

Rehabilitation
of LiwondeNaminga road

Infrastructure
Development

Shire-Zambezi
Waterway
Project

Infrastructure
Development,
Rehabilitation
and
maintenance

Labour
Intensive
Feeder Roads
Programme

Funding Source

Theme

Subtheme/
Priority Area

Geographi
c Region

Sub-SubTheme

Expected Cost (Projection

2011) in K000)

Objective

Output

Activity

To facilitate
trade and
traffic

Accessibility
and mobility
of the
population to
key corridors
improved

Construct and
upgrade road to
bitumen standard

Construct and
upgrade road to
bitumen standard

Infrastructure
Development

Transport
Infrastructure
Development

OPEC Fund

Infrastructure
Development

Transport
Infrastructure
Development

Road
Transport

To facilitate
trade

Accessibility
and mobility
of the
population to
key corridors
improved

MG

Infrastructure
Development

Transport
Infrastructure
Development

Water
Transport

To have a
shorter and
reliable access
to the sea

Reduced
transport
cost

Re-opening of
the Shire and
Zambezi
Waterway

Road
Transport

To improve
agricultural
production and
access to
social services

Mobility and
accessibility
of rural
communities
to goods and
services
improved

Hand reshaping
and grading of
feeder roads

Peoples Republic
of China

MG

Infrastructure
Development

Transport
Infrastructure
Development

Road
Transport

Donor
Projection
(Part I)

Government
Projection
(Part II)

Expected
Completion
Date

Linkages
with
Concept
Project

Project
Preparation

Financing

Implementation

2010

Access and
mobility to
key
corridors
improved

Consultancy

None

Construction

772,800

2010

Access and
mobility
improved

Consultancy

None

Construction

120,000

2009

Efficiency of
key
corridors
improved

Consultancy

None

Hydrographic
studies, EIA,
Feasibility studies

2011

Rural
infrastructur
e improved
particularly
unpaved
roads

1,363,000

Potential Collaboration with Private Sector or Other

Donors

400,000

None

54

Scope

Programme

Project Name

Transport and
Traffic
Services

Rehabilitation
of ports

Infrastructure
Development,
Rehabilitation
and
maintenance

Funding Source

Theme

Subtheme/
Priority Area

Geographi
c Region

Sub-SubTheme

Expected Cost (Projection

2011) in K000)

Objective

Output

Activity

Efficiency of
Marine
transport
improved

Rehabilitation of
port facilities

Marine
Transport

To improve on
productivity
and efficiency
of the services
rendered by
ports

MG

Infrastructure
Development

Transport
Infrastructure
Development

Rehabilitation
of ChikwawaNchalo road

EU

Infrastructure
Development

Transport
Infrastructure
Development

Road
Transport

To facilitate
traffic

Road
network
improved

Rehabilitation of
road,
Replacement of
timber-decked of
bridges

Infrastructure
Development,
Rehabilitation
and
maintenance

Rehabilitation
of MangochiMonkey Bay
road

EU

Infrastructure
Development

Transport
Infrastructure
Development

Road
Transport

To facilitate
traffic

Road
network
improved

Rehabilitation of
road

Infrastructure
Development,
Rehabilitation
and
maintenance

Construction
of BangulaNsanje road

MG

Infrastructure
Development

Transport
Infrastructure
Development

Road
Transport

To facilitate
traffic and
trade

Road
network
improved

Construction of
road to bitumen
standard

Total

MK
US$

Donor
Projection
(Part I)

Government
Projection
(Part II)

Potential Collaboration with Private Sector or Other

Donors

Expected
Completion
Date

Linkages
with
Concept
Project

2011

Efficiency of
Marine
transport
improved

214,540

2010

Access and
mobility
improved

276,880

2010

2010

9,657

80,000

1,854,420

1,382,457

13,246

9,875

Project
Preparation

Financing

Implementation

None

Rehabilitation

Consultancy

None

Rehabilitation

Access
road linking
to port
improved

Consultancy

None

Rehabilitation

Access to
key
corridors
improved

Consultancy

None

Construction

55

Annex 4: TRANSPORT PROBLEM TREES

56

57

Transport NRM Problem Tree

Transport infrastructure washed away annually
and countrywide

Poor/substandard
Construction

Ineffective
consultation
among
relevant
Ministries

Inadequat
e financial
resources

Non
efforcement
of standards

Infrastructure drainage
system ineffective

Lack of
maintenance

Excessive siltation cloging waterways,

dams, river etc

Vandalism

Expansion of agric.
land and settlement

Poor
farming
practices

Inadequate
funding

Conflicting
policies

Inadequate extension
services

Poverty

Inadequate civic
education

Increasing
settlements

Population
pressure

Deforestation

Lack of
enforcement
of
regulations

Expansion of
agric. land and
settlement

Lack of
alternative
livelihoods
(cash)

Charcoal
production

Increasing
energy
needs
especially
charcoal
and
firewood

58

ANNEX 5: ORGANISATIONAL CHARTS

Figure 6: Organizational chart for Ministry of Transport and Public Works

Minister

Principal
Secretary

RA

Senior Deputy
Secretary
Administration
Dept

Accounting
Dept

Planning Dept

IT Dept

HR Dept

Road Traffic
Dept

Civil Aviation
Dept

Marine Dept

Roads Dept

PVHO

Corridors
Secretariat Unit
59

Figure 7: Roads Authority Organizational Chart

Minister
(MTPW)

RA Board

Chief Executive

Operations Dept

Planning

Weighbridges

Procurement

Administration,
HR & PR

Central Roads

Zone Offices

Urban & District

Roads

Finance Dept

Internal Audit

Accounting

Treasury

60

ANNEX 6: IMPLEMENTATION TIMELINES

Figure 8: Implementation Timeline for Road Transportation

61

Figure 9: Implementation Timeline for Rail Transportation

62

Figure 10: Implementation Timeline for Transport Regulator

63

ANNEX 7: PROGRAM LOGIC FOR TRANSPORT PROJECT INTERVENTIONS (TO BE ADDED AFTER COMPLETION)

64

ANNEX 8: CONDITION OF THE RAIL WAY LINE

As highlighted earlier on, the 797 km railway line network in Malawi is composed of three sections:
a). The Salima Mchinji railway line which is 223 km long:
b). The Salima- Blantyre - Nsanje railway line which is 473 km long; and
c). The Nkaya Nayuchi railway line which is 101 km long and extends to Cuamba in Mozambique.
SOUTHERN ROUTE
Marka Border Post - Makhanga line (80.4 km)
Track Geometry
The general alignment of the track both on curves and tangent is satisfactory except for places breached by flood water.
Rails
This section has 30kg/m rails generally in satisfactory condition. Most of the rails are old so there is need for rehabilitation
Sleepers
The general condition of sleepers is fair. Except for bridges and turnouts all the sleepers are of the steel type with clip and
bolt as well as elastic (mostly Pandrol) fastenings. Bridges and turnouts have wooden sleepers. Due to old age of the steel
sleepers and the fact that most wooden sleepers are either missing or rotten an allowance of 15% replacement should be
allowed for, that is, 16,800 sleepers including 2,000 bridge timbers for main line. Also allow 15m3 for turn out wooden
sleepers.
Rail / Sleepers Fastenings
Most rail / sleeper fastenings are intact but due to the old age of the rails and sleepers it is recommended that all
replacement sleepers should have complete set of fastenings.
Ballast
Some sections have stone ballast whereas most of the track has gravel ballast. The condition of the ballast is generally poor
in terms of quantity and quality.
Formation
The formation has generally been eroded by flood water. The bank and other embankments at washed away sites will
require a large amount of gravel to ensure that the design track profile is maintained.
Bridges and Culverts
These are generally in satisfactory condition a part from those affected by flood water. Most bridge timbers are missing so
that their replacement should include fastenings such as coach screws and hook bolts on steel girder bridges.
Drainage
Drainage for the track has generally been neglected. Catch water drain and side drains need to be reinstated to avoid track
wash ways and general erosion of the track formation.

65

Level Crossings
Most level crossings are in poor condition both in terms of track structure at the crossings as well as warning signs on both
road and rail approaches. They need to be rehabilitated.
Stations
All stations building including the yards as well as other associated structures are in poor state. Buildings have been
vandalized and tracks in the station yard have deteriorated due to lack of maintenance. Complete rehabilitation will be
required. Generally turnout sleepers are in a very poor condition and at least the main line turnout sleepers should be
replaced.
Railway Reserve
In general the reserve is overgrown affecting visibility. The reserve were encroached by villagers who are cultivating very
close to the track. In some places there are huts built on the track. All obstructions within the reserve will need to be cleared.
MAKHANGA BLANTYRE SECTION (80.4 209.1 km)
Track Geometry
Generally the track geometry on both curves and tangent track is satisfactory. There are however some sections with poor
alignment. The poor alignments need to be corrected in the normal course of track maintenance.
Rails
The rails in this section are predominantly 30kg/m type which is generally in satisfactory condition except those affected by
wheel burn, burr at rail ends, and mushrooming, side and crown wear of rail head which will need railway replacement.
Sleepers
The sleepers in this section are mostly the 30kg steel type although there are also a few sections with concrete sleepers
adapted to take 30kg rails using shims. Their condition is generally fair although there are some steel sleepers which are
broken or dented and some concrete sleepers damaged due to derailed wheels. Some 2,086 steel sleepers and 300
concrete sleepers complete with fastenings need to be replaced. Most steel sleepers damaged are within Makhanga and
Thekerani section and the defective concrete sleepers are in the Nansadi / Luchenza section.
Rail / Sleeper Fastenings
Most rail / sleeper fastenings are holding. About 496 clip and bolt type are missing mostly in Makhanga Luchenza section.
On the other hand about 3,601 pandrol clips are missing. 2,881 of these clips are for steel sleepers and 720 are for concrete
sleepers. A replacement of 3000 pandrol clips for steel sleepers and 1,000 clips for concrete sleepers should be provided.
Ballast
Similar to the Makhanga Border section there is inadequate ballast both stone type and gravel type. It is recommended
that all sections should have stone ballast.
Formation
The formation particularly on embankments is seriously eroded in many places.

66

Bridges and Culverts

Bridge and Culvert maintenance has generally been neglected in this section. Bridge faults include poor girder positioning,
pier and abutment movement, excessive scour at piers / abutments and sinking track at bridge approaches. Some long
girder bridges have no guard rails and where these are provided they are not installed adequately. Bridges at the following
locations need urgent attention:- Lifuluzi Bridge, Thekerani Bridge, Nzimbiri Bridge, Linguni Bridge, Lelembe Bridge, Mgulula
and Mafisi Bridges. Similarly many culverts need to be attended to in terms of blockade, damage and in a few cases poor
location.
Drainage
Drainage provisions are generally inadequate. There is an urgent need to open up or excavate new catch water drains as
well as side drains throughout the section.
Level Crossings
Most level crossings need to be rehabilitated as indicated for the Makhanga Border section. At least 22 sets of warning
signs for road side and rail side approaches are required. Similarly the flash light systems and some level crossings e.g.
Midima and Chileka roads need regular surveillance as they do not function properly most of the time.
Stations
Apart from Makhanga, Luchenza, Limbe and Blantyre stations all the other stations were abandoned and consequently they
have been vandalized. The station yard lines are also in poor state. When traffic picks up with the opening of Beira Railway
line these dilapidated stations will have to be rehabilitated. Generally turnout sleepers are in very poor condition and at
least the main line turnout sleepers should be replaced
Railway Reserve
The railway reserve is generally overgrown and although some attempt has been made by CEAR to control weed by
chemical spraying a lot more work is required to clear the reserve. Manual bush cleaning and weeding could be more
effective.
NORTH LINE BLANTYRE SALIMA SECTION (209 - 469 km)
Track Geometry
The geometry of the track particularly in the hill section between Blantyre and Lirangwe stations is generally poor. Track
misalignment on curves can be observed at many sites in the form of track buckles due to loose sleeper fastenings, badly
dented steel sleepers, damaged concrete sleepers and slacks. Poor alignment on curves is prominent at many sites. The
track geometry should be corrected after replacing defective components of track.
Rails
The rails in the North line are predominantly BS 60 (or 30kg/m) rail types and generally in satisfactory condition except those
that have been affected by excessive wear and other rail defects. Most rails with excessive wear are on check railed curves
as such the appropriate remedy is replacement. The alternative of transposition would be less reliable on account of the
weakened low leg rail due to check rail bolt holes in web. Inspection results indicate that 60 rails X 12m each need
replacement in the hill section between Blantyre and Lirangwe.
Sleepers
The North line has mostly steel sleepers with Pandrol as well as clip and bolt sleeper / rail fastenings. There are also some
few sections with concrete sleepers. The concrete sleepers are all of the mono block pre-stressed type with Pandrol clips

67

designed for 40kg rail (or BS 80A).In order to adapt these sleepers to carry 30kg rail special shims are used. A significant
number of sleepers of both concrete and steel types have been damaged mostly by derailed trains. Some 8,510 concrete
sleepers and 3226 steel sleepers require to be replaced complete with appropriate fastenings.
Rail / Sleeper Fastenings
The rail / sleeper fastenings in North Section are generally in satisfactory condition except where they are missing or
damage due to derailments. At least 800 clip and bolt types and 1,700 Pandrol type fastenings require to be replaced.
These are in addition to the ones required for sleeper replacements.
Ballast
The ballast in the North line is mostly of the crushed stone type although generally the quantities are inadequate due to
attrition and loss through getting either washed away or scattered by animals and people walking on the track.
Formation
Similar to the South line the formation has been mostly eroded in the North line.
Bridges and Culverts
There are many important bridges which require attention urgently. Shire North Bridge has a total of 40 bridge timbers
decayed. Nadzipula Bridge has 84 bridge timbers decayed. Livulezi Bridge has 79 sleepers decayed. There are many
bridges requiring timber replacements. The substructure at Nanyangu Bridge requires urgent attention.
Drainage
The drainage system for the track is generally inadequate and urgent attention is required to re-open catch water drains as
well as side drains in order to avoid track wash ways.
Level Crossings
Most level crossings need rehabilitation both in terms of the structure and provision of warning signs. 119 rail side signs, 136
roadside signs, 10 checkrail blocks are required to improve the condition of Level Crossings.
Stations
Although the condition of stations and yards is better in the North line than in the South line most of the closed stations are
in poor state and some have been vandalized. If traffic levels improve some of these closed stations will need to be reopened. It is therefore desirable to maintain these stations to avoid expensive complete reconstruction in the future. These
stations could be rented out to responsible people who would be required to safeguard the infrastructure. In terms of
turnouts at stations the main problem is the poor condition of sleepers which in many cases require replacement.
Railway Reserve
Like in the South Line the Railway Reserve in the North Line requires clearing to improve visibility and avoid obstructions to
train movement. Encroachment of the reserve by villagers gardening or erecting structures close to the track is a serious
problem which could be resolved through discussion with local Chiefs in conjunction with Government Officials responsible
for district administration.

68

EAST LINE: NAYUCHI NKAYA SECTION (101 km)

Track Geometry
The East line is a relatively new railway having been opened in 1970 to link Malawi Railways with Mozambique Railways to
the port of Nacala. It has much better track geometry than both the South and North Lines. The Molipa Liwonde Section
has an uneven alignment both vertically and horizontally. The curve needs to be corrected and provided with curve beacons
to facilitate maintenance.
Rails
The rails in the East Line are all BS 80A type (i.e. 40kg/m) Continuously Welded (CWR) and generally in good condition.
However there is some side wear covering a total of 3 km of rail between Nkaya and Lambulira. This wear should be
monitored so that appropriate corrective action should be taken timely.
Sleeper
All sleepers in the East Line are the pre-stressed concrete mono-block type and generally they are in satisfactory condition.
However there are 2,294 sleepers which are damaged mainly due to train derailments. These sleepers should be replaced
complete with suitable Pandrol fastenings.
Rail / Sleeper Fastenings
There are about 270 Pandrol clips missing on this line which will require to replacement. Generally most fastenings are
holding effectively.
Ballast
This line has stone ballast throughout but it is necessary to provide additional ballast in many places where the ballast
profile is poor on account of attrition and scatter by animals and people walking on thetrack.
Formation
There are a number of places throughout the East Line where the formation has been affected by washaways and animals
or people walking on the cresses.
Bridges and Culverts
The bridges on this line are mainly the pre-stressed concrete type, box steel girder type and reinforced concrete types. The
culverts mostly reinforced concrete types and steel pipe types. A part from Rivirivi and Shire (Liwonde) Bridges most bridges
have ballasted decks. Both bridges and culverts are generally in satisfactory condition although the following deficiencies
need to be corrected: - Namanja Lambulira Section pipe culvert at km 31 needs repair. The embankments on bridge
approaches near Mbanila Halt needed to be repaired. In Lambulira Nkaya Section some bridge walk way decks have
been damaged and urgent repairs are required particularly on Rivirivi Bridge.
Drainage
The drainage system for the East Line track is generally satisfactory although side drains in many places need to be cleared
of bush and ensure that storm water goes through appropriate bridges and culverts.

69

Level Crossings
There are many unauthorized level crossings particularly between Lambulira and Nayuchi. A number of level crossings do
not have warning signs. 40 rail side signs, 46 road side signs and 6 concrete crossing blocks need replacement. The
unauthorized level crossings should be blocked or if required they should be properly installed.
Stations
The stations and yards in the East Line are generally in good condition. The closed stations however should not be
completely neglected. Generally turnout sleepers are in very poor condition and at least the main line turnout sleepers
should be replaced.
Railway Reserve
The railway reserve in East Line needs clearing to improve visibility. The poor sections requiring urgent maintenance are
between Nayuchi and Namanja and between Liwonde and Nkaya. Encroachments on the railway reserve must be controlled
to avoid accidents as well as ensuring that drains are not obstructed.
WEST LINE: SALIMA MCHINJI BORDER SECTION (469 696 km)
Track Geometry
The West Line is the most recently constructed railway line having opened for traffic in 1979. The track geometry is therefore
well designed and it is still generally in good condition. However track between km 488 and km 489 as well as km 568 needs
to be realigned.
Rails
The rails in this line are all BS 80A type (or 40kg/m) laid in 48m lengths (L.W.R.). It was initially expected that these long
welded rails would bethermit welded into continuous welded rail (C.W.R.) but this plan was not carried out. The rails are
generally in good condition except for a few locations between Balangombe and Kanengo where there are wheel burns and
in hill section between Nanjoka and Kawula as well as Nankhanga to Kanengo where rail transposition should be done
when necessary. The hill section curves were provided with rail lubricators but these are missing or not functioning. Rail
lubrication should be revived in order to pro long the service life of the rails.
Sleepers
The sleepers are all prestressed concrete type similar to the East Line. 6565 sleepers were observed to be damaged and
these should be replaced complete with fastenings.

Rail / Sleeper Fastenings

The rail / sleeper fastenings in this line are al Pandrol clip type. Most of them were noted as missing and these must be
replaced.
Ballast
Similar to East Line stone ballast is used on the West Line. However the quality and quantity needs to be improved.
Formation
The formation has been eroded at many places throughout the West Line.

70

Bridges and Culverts

Bridges on this line are mostly of composite steel / Reinforced concrete design. Culverts are mostly the steel plate ARMCO
pipe types where the bridges are in generally good condition. Many culverts have been vandalized or stolen. In order to
avoid these problem reinforced concrete culverts need to be considered for replacement. One of the problems on bridges is
the missing of safety refuges on the long bridges. This is a serious situation as these refuges protect maintenance crews
who are working on the bridge while a train is crossing the bridge. Safety refuges should therefore be reinstated.
Drainage
There is need to open up all obstructed drains and provide new drains where required. The blockage of some culverts has
worsened the problem. All efforts should be made to correct the poor drainage situation.
Level Crossings
There are many level crossings with missing warning signs. 144 rail side signs and 152 road signs need to be replaced.
Stations
Station buildings and yards in the West Line are generally in good condition. However the closed stations are deteriorating
and this should not be allowed to continue. Generally turnout sleepers are in very poor condition
Railway Reserve
The railway reserve needs to be cleared in most sections of the West Line particularly within the Salima/Kawula,
Balangombe/Msunga and the Lilongwe / Mchinji Border sections. Encroachments should also be controlled.
PROJECT DESCRIPTION AND MAIN ACTIVITIES
In view of the above situation analysis of the rail infrastructure condition a number of activities will have to be undertaken in
order to improve the condition of the railway line
TRACK REHABILITATION
Component 1: Rehabilitation of the Blantyre Marka Rail way line
There will be need to rehabilitate the railway line between Marka and Blantyre (209 km) including Construction of the Bridge
at Bangula Bank. The scope of work will include Reinstatement and improvement of the drainage along the track;
replacement of track material and correlation geometry ; (a) Concrete/steel resleepering; (b) Rail Replacement; (c) Remidal
work on contaminated ballast.
The main objective of this activity will be to provide rail way access to the port of Beira thereby providing an alternative route
to the port of Nacala.
Component 2: Upgrading of Track on Blantyre - Salima (260 km), Salima - Mchinji (227 km) and Nayuchi Nkaya (101
km) Sections
This will involve reinstatement and improvement of drainage along the track; replacement of track materials and correction
of track geometry which will include concrete / steel resleepering; partial re-railing of sections identified as having smaller rail
section (30KG/meter rail) and remedial work on contaminated ballast.
The main objective of this activity will be to reduce transit times by increasing train speeds thereby improving wagon turn
around. This intervention will also reduce derailments and traffic disruptions apart from reducing the maintenance cost in
short to medium term.

71

Component 3: Drainage Restoration and improvement

This will involve rehabilitation of vandalized culverts on the Salima Mchinji and Nayuchi- Sections and rehabilitation of
bridge sand culverts on the Balaka - Salima sections and the scope of work will entail the restoration of 50 vandalized
culverts on the Salima- Mchinji and Nayuchi- Nkaya sections including provision of protection works. It will also include
maintenance of bridges and culverts.
The main objectives of these interventions are therefore to reduce traffic disruptions resulting from track washaways during
rainy season and reduce speed restrictions on structure resulting from poor condition of the structures.
Component 4: Hydrology study
According to this intervention, the main purpose is to identify bridges and culverts that are currently being threatened by
erosion and develop preliminary list of critical areas that may warrant attention and also make an assessment of the primary
mechanisms of failures at structures and recommend repair /protection works.
This will assist greatly in preventing future traffic disruptions resulting from truck and structure washaways.
Component 5: Procurement of Locomotives
Under this project there is also need to buy more locomotives to increase the number of operating locomotives and increase
the efficiency of the rail line.
PROVISIONAL LIST OF RAIL BRIDGES WITH HIGH RISK OF WASHAWAY
The priority listing of bridges with high risk of washaways is as follows:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)

Shire North bridge

Lifidzi bridge
Nanyangu bridge
Ngoni bridge
Thuta bridge
Maliwati bridge
Kalambo bridge
Chimwala bridge
Nankhokwe bridge
Mphandamadzi bridge
Drainage structures between 316km and 322km
Drainage structures between 269km and 271km

Apart from the Shire North bridge at 275.7km and the drainage structures between 269km and 271km, which are on the
Blantyre Nkaya section, the rest of the bridges are on the Balaka Salima section.

72

ANNEX 9: TRANSPORT COSTS AND OTHER RELATED INFORMATION

Table 9: Transportation Costs for Dry Cargo
General Information
Corridor/
Destination
Durban
Dar-esSalaam

Beira

Nacala

Beira

Vehicle
Type

Average
Speed
(km/hr)

Time
taken
(days)

Border
Times
(days)

Transit Times
Total
Total
No. of
border Transit
Borders
times
Time

Point of
Origin

Distance
(Kms)

Mode

Blantyre

2,340

Road

Truck

50

2.0

Lilongwe

2,650

Road

Truck

50

2.2

Lilongwe

1,667

Road

Truck

50

1.4

Blantyre

1,978

Road

Truck

50

1.6

Blantyre

825

Road

Truck

50

0.7

Lilongwe

1,096

Road

Truck

50

Lilongwe

989

Rail

Locomotive

Blantyre

799

Rail

Lilongwe

951

Blantyre

575

Transportation Costs
Turnaround
(days)

Unit cost
per ton

40
containers

Port
charges

Total
Cost

16

$346

$6,150

$1,100

$7,250

16

$351

$6,250

$1,100

$7,350

$236

$3,900

$520

$4,720

$281

$4,750

$520

$5,520

$110

$1,800

$900

$2,860

0.9

$118

$2,000

$900

$3,000

15

2.7

10

$39

$890

$900

$1,588

Locomotive

15

2.2

$34

$600

$900

$1,505

Rail

Locomotive

50

0.8

$37

$620

$900

$1,562

Rail

Locomotive

50

0.5

$24

$425

$900

$1,335

Sources: Malawi Cargo Centres Limited, Clearing and Forwarding Agents Association and Central East African Railways Limited.
Port Charges include: actual payments to Ports Authority, handling charges, documentation and clearing charges, administration charges, inland container depot charge and shipping line charge.

73

Table 10: Transportation Costs for Liquid Cargo

General Information

Time Taken
Border
Times
(days)

No. of
Borders

Total
border
times

1.4

50

1.6

Truck

50

0.7

Road

Truck

50

0.9

989

Rail

Locomotive

15

2.7

Lilongwe

799

Rail

Locomotive

15

2.2

Blantyre

951

Rail

Locomotive

50

Lilongwe

575

Rail

Locomotive

50

Distance
(Kms)

Mode

Durban

Blantyre
Lilongwe

2,340
2,650

Road
Road

Dar-es-Salaam

Lilongwe

1,667

Road

Truck

50

Blantyre

1,978

Road

Truck

Blantyre

825

Road

Lilongwe

1,096

Blantyre

Beira

Nacala

Beira

Vehicle
Type

Average
Speed
(km/hr)

Point of
Origin

Corridor/Destination

Time
taken
(days)

Total
Transit
Time

Transportation Costs
Turnaround
(days)

Unit
cost
per
ton

40
containers

Port
charges

Total
Cost

$258

$4,600

$520

$5,120

$301

$5,360

$520

$5,882

$129

$2,300

$900

$3,200

$137

$2,450

$900

$3,350

10

$75

$1,335

$900

$2,235

$90

$1,602

$900

$2,502

0.8

$60

$1,068

$900

$1,968

0.5

$85

$1,513

$900

$2,413

Sources: Malawi Cargo Centres Limited, Clearing and Forwarding Agents Association and Central East African Railways Limited.
Port Charges include: actual payments to Ports Authority, handling charges, documentation and clearing charges, administration charges, inland container depot charge and shipping line charge.
Liquid charges are mainly composed of fuel imports. Fuel is imported mainly through Beira and Dar es Salaam(over 90%). Small quantities are imported through Nacala.

74

Table 11: Costs, Transit Times and Other Information before the Project

General Information
Corridor/
Destination
Durban
Dar-esSalaam

Beira

Nacala

Beira

Time
taken
(days)

Border
Times
(days)

50

2.0

Truck

50

2.2

Road

Truck

50

1.4

1,978

Road

Truck

50

1.6

Blantyre

825

Road

Truck

50

Lilongwe

1,096

Road

Truck

Lilongwe

989

Rail

Blantyre

799

Lilongwe
Blantyre

Point of
Origin

Distance
(Kms)

Mode

Vehicle
Type

Blantyre

2,340

Road

Truck

Lilongwe

2,650

Road

Lilongwe

1,667

Blantyre

Average
Speed
(km/hr)

Transit Times
Total
Total
No. of
border
Transit
Borders
times
Time

Transportation Costs
Turnaround
(days)

Unit cost
per ton

40
containers

Port
charges

Total
Cost

16

$346

$6,150

$1,100

$7,250

16

$351

$6,250

$1,100

$7,350

$236

$4,200

$520

$4,720

$281

$5,000

$520

$5,520

0.7

$110

$1,960

$900

$2,860

50

0.9

$118

$2,100

$900

$3,000

Locomotive

35

2.7

10

$39

$688

$900

$1,588

Rail

Locomotive

35

2.2

$34

$605

$900

$1,505

951

Rail

Locomotive

35

0.8

$37

$662

$900

$1,562

575

Rail

Locomotive

35

0.5

$24

$435

$900

$1,335

Sources: Malawi Cargo Centres Limited, Clearing and Forwarding Agents Association and Central East African Railways Limited.
Port Charges include: actual payments to Ports Authority, handling charges, documentation and clearing charges, administration charges, inland container depot charge and shipping line charge.

75

Table 12: Costs, Transit Times and Other Information After Project Implementation
General Information
Average
Time
Border
Corridor/
Point of Distance
No. of
Mode Vehicle Type
Speed
taken
Times
Destination
Origin
(Kms)
Borders
(km/hr)
(days)
(days)
Durban
Dar-esSalaam

Beira

Nacala

Beira

Transit Times
Total
Total
border
Transit
times
Time

Transportation Costs
Turnaround
(days)

Unit cost
per ton

40
containers

Port
charges

Total
Cost

Blantyre

2,340

Road

Truck

50

2.0

16

$346

$6,150

$1,100

$7,250

Lilongwe

2,650

Road

Truck

50

2.2

16

$351

$6,250

$1,100

$7,350

Lilongwe

1,667

Road

Truck

50

1.4

$236

$4,200

$520

$4,720

Blantyre

1,978

Road

Truck

50

1.6

$281

$5,000

$520

$5,520

Blantyre

825

Road

Truck

50

0.7

$110

$1,960

$900

$2,860

Lilongwe

1,096

Road

Truck

50

0.9

$118

$2,100

$900

$3,000

Lilongwe

989

Rail

Locomotive

50

$29

$516

$900

$1,416

Blantyre

799

Rail

Locomotive

50

$23

$409

$900

$1,309

Lilongwe

951

Rail

Locomotive

50

0.8

$31

$552

$900

$1,452

Blantyre

575

Rail

Locomotive

50

0.5

$20

$356

$900

$1,256

Sources: Malawi Cargo Centers Limited, Clearing and Forwarding Agents Association and Central East African Railways Limited.
Port Charges include: actual payments to Ports Authority, handling charges, documentation and clearing charges, administration charges, inland container depot charge and shipping line charge. Using
the existing the existing rates, if the rail infrastructure is improved, there would be a decrease in the rates charged to users. The improvement of rail infrastructure would lead to an increase in speed for
trains and eventually in reduction in transit time. The improvement in speed would result in less operation costs such as crew costs, maintenance costs and depreciation which are time based. The
reduction in operational costs would be passed to users in form of reduced transport rates. The Beira route is currently not operational by rail. Estimated transport costs and transit times were obtained
from the rail concessionaire on the Nacala Corridor, Central East African Railways Limited.

76