* And to upgrade inland lake infrastructure at Chipoka port in Salima
* The partnership directly tackles Malawi’s over-reliance on road transport for moving goods
By Patience Longwe, Malawi News Agency (MANA)
Ministry of Transport & Public Works has signed a memorandum of understanding (MoU) with Chinese firm, Xiao Xiang Investment, to expand Lake Malawi’s fleet and infrastructure.
The deal will see the construction of four vessels — two for dry cargo, one fuel tanker, and one for passengers — alongside a new port facility at Chipoka in Salima.
At the signing ceremony at Capital Hill in Lilongwe, Xiao Xiang Investment Managing Director, Chen Cheng, said the partnership will help to address Malawi’s transport challenges and lower the cost of doing business.
Cheng said the company will support Malawi’s integrated transport system by building new oil tankers and freight vessels, and by upgrading inland lake ports including the Chipoka ferry terminal.
He added that construction of tankers will better serve National Oil Company of Malawi (NOCMA) and Petroleum Importers Limited (PIL) companies “greatly improving the efficiency and volume of transportation while reducing cost”.
Construction of freight ships will directly open Malawi’s freight corridor to the ports of Tanzania and Mozambique as the shipping service will also reduce damage to the M1 Road from heavy trucks and ensure uninterrupted operations even during the rainy season.
Cheng added that the cooperation will go beyond vessels to include logistics storage parks; skills training for Malawians in road, rail and port management; and support for community projects along transport routes.
He stressed commitment to green and compliant infrastructure using low-carbon processes, saying: “This MoU is a new starting point for cooperation, not the end.
“In the near future, we will form joint teams to advance project due diligence, overall planning, programming, and investment and financing proposals.”
Chen Cheng then expressed confidence that under the belt and road initiative, the transport partnership will become a benchmark for China-Malawi cooperation and help Malawi realise its dream of prosperity.
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On the part of the Malawi Government, Secretary for Transport & Public Works, Bright Kumwenda, said the timing could not be better as the country’s flagship passenger ship, MV Ilala, operated by Malawi Passenger Service, is aging and due for major works.
He noted that bringing in modern vessels will allow authorities to take Ilala out of service for rehabilitation without disrupting lakeshore communities that depend on it.
Kumwenda added that the partnership directly tackles Malawi’s over-reliance on road transport for moving goods: “Once operational, the new ships and port are expected to cut logistics costs, ease pressure on the M1 highway, and open up cheaper trade routes across the region.
“This will strengthen water transport, support cross-border trade, and make it easier for our agricultural and mineral products to reach markets”, stated Kumwenda.
Artistic impression of Mbamba Bay Port on Tanzania side of Lake Malawi which is under rehabilitation to benefit Malawi
Current construction that has reached 60% completion
The development comes as Tanzania is in the process of rehabilitating its Mbamba Bay Port situated north of Lake Malawi called Nyasa district into a modern facility whose economic activities is targeted to benefit neighbouring Malawi and Mozambique.
A report last week by that country’s online media, Daily News, quoted transport minister Makame Mbarawa as saying the two neighbouring countries are expected to benefit significantly from increased economic activities.
Among the expected developments linked to the port is the introduction of MV Njombe vessel services, which will be transporting coal to Malawi.
However, just days later, Malawi’s marine law enforcement detained and the MV Njombefor sailing on Lake Malawi without notifying the authorities of its presence and attempting to dock at Monkey Bay.
MV Njombe that sailed off from Mbamba Bay Port destined for Mangochi two weeks ago without notifying Malawian authorities
After inspection of the coal cargo, it was released after verifying that the 1,100 metric tonnes of coal it was carrying was destined for Portland Cement in Balaka.
A fortnight ago, Minister of Transport & Public Works, Jappie Mhango announced in Parliament that the Government is pursuing the acquisition of new vessels to replace the ageing MV Ilala as part of efforts to modernise water transport on Lake Malawi and reduce the cost of doing business.
Mhango disclosed government is engaging National Bank of Malawi, which expressed its willingness to support the acquisition of two new vessels, while discussions are also underway with other investors interested in investing in Malawi’s water transport sector.
The Minister noted that MV Ilala, which has been operating on Lake Malawi since 1951, has served the nation for 75 years and has outlived its operational lifespan.
M.V. Illala
He said replacing the vessel is a priority under Government’s broader strategy to modernise the country’s water transport system.
Mhango further emphasised that increasing the use of rail and water transport for cargo movement will lower transportation costects, reduce pressure on the road network, and enhance the efficiency and sustainability of the country’s logistics system.—Editing and additional reporting by Duncan Mlanjira, Maravi Express
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