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Malawi - Railways Restructuring Project (English)

The project outcome was satisfactory, having achieved its main objective of revitalization of the Nacala-rail route, resulting from the railways' privatization, through concessioning. Its sustainability is likely, and the institutional development impact is substantial. Lessons drawn from the project indicate that, in light of the time involved for a concessioning process to be completed, restructuring railways - without long-term investments - can still produce considerable interim, economic benefits, as shown by the successful results of the Malawi Railways, namely, reductions in operating costs, easing the government's financial support, with improved accountability by the newly incorporated railways, and lake service companies. Despite these benefits, improvements in the operational performance were slow, and the targeted international traffic did not materialize, apparently due to the parastatal framework which hinders staff motivation, and commitment. Privatization thus, appears essential to operate financial, self-sustaining entities, but the need for surplus staff to retire/retrench, regardless of its high political, and social cost, remain paramount. The concessioning experience elsewhere, suggests that investments by parastatals, are rarely valued by potential bidders, thus investments should be technically, and financially evaluated, and if possible, prior to concessioning, long-lived investments be avoided.

Details

  • Document Date

    2000/06/28

  • Document Type

    Implementation Completion and Results Report

  • Report Number

    20451

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Malawi,

  • Region

    Africa,

  • Disclosure Date

    2010/06/18

  • Disclosure Status

    Disclosed

  • Doc Name

    Malawi - Railways Restructuring Project

  • Keywords

    accountability,assets,Bank Performance,civil aviation,commercialization,concession agreement,concessionaire,concessions,containers,Corridor,debt,depreciation,domestic traffic,employment,export,fares,financial performance,FISCAL YEAR,framework,freight,freight forwarders,freight traffic,goal,Income,Institutional Development,international traffic,legal framework,locomotives,modes of transport,Operating costs,operating efficiency,operating expenditures,Operating ratio,operation and management,passenger,passenger services,passenger traffic,Ports,Private sector participation,public service obligation,rail,rail infrastructure,rail line,rail link,Railway,Railway Company,Railway concession,railway system,Railways,railways privatization,rate of return,Reference,Regional Office,remote,road traffic,road transport,route,routes,routing,safety,square,strength,technical assistance,track,trade unions,traffic,traffic growth,traffic projections,trains,Transport,trolleys,trucks,vehicles,wagons

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Citation

Malawi - Railways Restructuring Project (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/786481468300594541/Malawi-Railways-Restructuring-Project