CFM running passenger services at a loss

Maputo, 17 Mar (AIM) – Mozambique’s publicly-owned port and rail company, CFM, loses annually about 4.5 million US dollars as result of its policy of subsidizing passenger transport on the Limpopo, Goba, and Ressano Garcia lines, in the southern region.

These are the lines to Zimbabwe, Eswatini and South Africa. Passenger services on these lines run at a heavy loss.

According to Emídio Bata, the CFM director in the southern region, interviewed by AIM, the amount paid by passengers covers only 15 per cent of the current cost of the service, and the remainder is covered by the company as part of its social responsibility.

“CFM subsidizes 85 per cent of the passenger service”, he said. “Annually, in the Southern region, we accumulate approximately 4.5 million US dollars in losses. This means that passenger rail transport in Mozambique should be understood primarily as a social contribution, and not as a profit-oriented activity. We don’t look at profit. So, in fact, it’s a huge loss for the entire southern rail system”.

Bata explained that the current fare does not even cover fuel costs, “but the company believes it is crucial to maintain the service, given its social impact and contribution to reducing the difficulties faced by the population.”

“In addition to long-distance services, CFM also provides intercity connections, linking Maputo to Matola-Gare, Boane and Marracuene, thus ensuring the movement of thousands of people”, he said.

The director added that recently demand for passenger rail transport has been growing, forcing the company to redouble its efforts to meet the demand, helping to alleviate the mobility difficulties of thousands of citizens who use the service every day.

“Our commitment and challenge is to find ways to allocate more resources so that we can provide this essential service to our population with the necessary convenience, safety, and efficiency. This is a complex challenge given the increasing costs that this operation entails, but we must not shirk our responsibility in this area of public service”, he said.

Over the past two years, he said, CFM has made significant investments in modernizing the railway system, notably acquiring new equipment to improve the transport of people and goods.
(AIM)
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