Ports and Railways of Mozambique (CFM) is investing $70 million in new locomotives and wagons to increase rail freight capacity, improve efficiency and strengthen Mozambique’s role as a regional logistics hub.

The state-owned rail and port operator has secured financing to buy 10 locomotives and 420 wagons. The African Development Bank (AfDB) is providing $40 million, while Standard Bank of South Africa is contributing another $30 million.

The new equipment will expand CFM’s fleet and allow the company to transport more cargo by rail. This could reduce pressure on roads and improve freight movement along corridors connecting Mozambique with neighbouring land-linked countries.

Under the financing arrangements, CFM will repay about $3.89 million every six months for approximately 18 years.

The rolling stock investment is part of a wider programme to modernize Mozambique’s railway and port infrastructure. In 2025, CFM invested 3.254 billion meticais (€50.4 million), representing 58% of its approved investment budget.

Major projects include the doubling and modernization of the Ressano Garcia railway line, the purchase of additional rolling stock, installation of railway telecommunications systems, rehabilitation of port infrastructure, and modernization of facilities at the ports of Nacala and Beira.

CFM is also rehabilitating the Machipanda railway line in a project estimated to cost $146 million. The project is mainly financed by Standard Bank, BCI and Absa.

The investment in rail capacity comes as Mozambique seeks to improve the performance of its major transport corridors and attract more regional transit cargo.

CFM operates the Ressano Garcia, Limpopo and Goba railway lines in southern Mozambique, the Beira railway system in the central region, and the ports of Nacala, Pemba and Quelimane.

CFM is also preparing to support the expansion of Mozambique’s oil and gas industry.

Its subsidiary, CFM Logistics, established in 2023, is developing logistics services for oil and gas projects. These include opportunities in port infrastructure, maritime services and transportation linked to liquefied natural gas (LNG) developments.

CFM views the development of the Rovuma Basin as an opportunity to diversify its revenue and increase the participation of Mozambican companies in the oil and gas supply chain.

The company expects its involvement in the sector to generate additional revenue, create jobs and support local businesses.

The investment in locomotives and wagons is therefore part of a much broader effort to improve Mozambique’s freight network. Railway upgrades, new telecommunications systems and port modernization are all aimed at making the country's transport infrastructure more efficient and competitive.