Mozambique-South Africa rail upgrade enters second phase in July

Mozambique is preparing to begin the next stage of a major railway expansion project linking the country to neighboring South Africa, reinforcing one of Southern Africa’s most important trade routes. 

State-owned ports and rail operator Portos e Caminhos de Ferro de Moçambique (CFM) said the second phase of the double-tracking of the Ressano Garcia line will start in July with an investment of about $160 million. 

The rail corridor connects Maputo to South Africa and serves as a key route for the movement of minerals, agricultural products and other goods between the two countries. 

CFM said a contractor for the project is expected to be announced in July. The company described the upgrade as a critical step toward improving cargo movement along the Maputo Corridor and strengthening the region’s logistics network.

The latest investment comes as Mozambique seeks to modernize its transport infrastructure while recovering from severe floods that disrupted rail operations earlier this year.

Capacity expansion to support trade 

According to CFM, the first phase of the project increased annual carrying capacity on the Ressano Garcia line from about 13 million tonnes to 24 million tonnes. 

The company said the improvement has helped strengthen Mozambique’s position as a regional logistics hub and highlighted the importance of the railway to trade between Mozambique and South Africa. 

The second phase is expected to further ease the movement of freight through the Maputo Corridor, one of the busiest transport links in Southern Africa.

Flood damage highlights infrastructure risks 

CFM said recent floods brought operations on the Limpopo line, the country’s second-most important railway, to a halt for nearly three months. 

The disruptions affected about 130 trains and caused losses estimated at $12 million.

The company said the experience showed that alongside expanding capacity, Mozambique must also invest in infrastructure that can better withstand extreme weather events. 

Despite the flood damage, rail traffic continued to recover after the post-election protests that affected operations in 2025.

Passenger and freight volumes rise 

Data from the Ministry of Transport and Logistics showed passenger traffic nearly doubled in the first quarter of 2026 to 151,400 passengers, up 95 percent from the same period last year. 

Freight volumes also increased, with 3.6 million tonnes of cargo transported during the quarter, a 14.9 percent rise from a year earlier. 

Mozambique plans to invest 14 billion meticais ($193 million) by 2030 to expand rail infrastructure and acquire new coaches, wagons and locomotives to support growing demand for passenger and freight services.