SOE restoring 'railroad of happiness' in Africa

With many African countries building new railroads and modernizing old railway systems to ensure the efficient transport of goods and raw materials across vast distances, China Railway 20th Bureau Group Corp, which goes by the abbreviation CR20G, will complete the rehabilitation of the Marka-Bangula Railway in Malawi by late 2025.

The Marka-Bangula Railway was largely damaged by floods in 1997, rendering it completely out of service. In January 2023, CR20G, a subsidiary of State-owned China Railway Construction Corp Ltd (CRCC), started restoring the 72-kilometer-long railroad from Marka, the station on the southern border with Mozambique, to Bangula in Nsanje district.

With the targeted completion date set for October 2025, the project plans include constructing 20 new bridges and 121 new culverts, as well as building four stations along the entire line.

The project involves the upgrade and rehabilitation of existing railway lines, with provisions for future electrification upgrades, laying the foundation for the modernization of Malawi's railway network.

Ru Hong, director of the engineering management department of the Marka-Bangula Railway project from Xi'an, Shaanxi province-headquartered CR20G, said the project will facilitate the exchange of passengers and goods between Zambia and the port of Beira, Mozambique, creating a vital sea passage for southern African countries.

Dubbed the railroad of happiness that connects the world by local residents, the railway will support the import and export of cross-border minerals, agricultural products and other resources.

Ru said the completion of the railway will "achieve Malawi and Mozambique railway interoperability" and enable the passage of Malawi's agricultural products and minerals to foreign markets.

The railway will also help Zambia and other landlocked countries transport their resources through Malawi to the seaport, he said.

Since entering Malawi in 2018, CR20G has been fully involved in the country's infrastructure construction, completing several key projects such as the Nsanje-Marka Road and the National Indoor Sports Complex in Lilongwe. These projects have provided substantial support for the southeastern African nation's economic and social development.

The Chinese company has employed more than 5,000 local workers over the past six years. In its three ongoing projects, the ratio of Chinese to Malawian employees is 1:15, and these foreign employees have become the backbone of CR20G's localized development in Malawi.

"Not only the results achieved during China's pursuit of modernization can benefit its African partners, China's development experience and mature modes also pave the way for the countries, helping them achieve faster industrial development with lower cost," said CRCC Chairman Dai Hegen, adding that with the signing of the memorandum of understanding on refurbishing the 1,860-km Tanzania-Zambia Railway, the SOE will ramp up efforts in the railway's construction and operations, and seek a bigger role in the bilateral cooperation between China and African partners.

In addition to connecting landlocked countries to ports and international markets, freight railways are able to enhance trade opportunities and stimulate economic growth by cutting transportation costs and increasing access to foreign markets, said Chen Jianwei, a researcher at the Academy of China Open Economy Studies, which is part of the Beijing-based University of International Business and Economics.

"Developing modern railroad systems can effectively support the mining, agriculture and manufacturing sectors by providing reliable and cost-effective transportation for heavy and bulk goods. This enables the growth of industries that are vital to the economic development of many African countries," Chen said.

Thanks to the tangible growth of the Belt and Road Initiative and demand from many countries for various forms of economic cooperation, China's non-financial outbound direct investment soared 16.2 percent year-on-year to $83.55 billion in the first seven months of this year, data from the Ministry of Commerce showed.

The cooperation under the BRI framework gained steam as ODI in markets participating in the BRI surged 7.7 percent year-on-year to $17.94 billion during the January-July period.

Zhang Xiang, vice-president of the Beijing-based China International Contractors Association, said it has been impossible to overlook the presence of Chinese companies in major road construction projects or power station sites across Africa over the past two decades. They are playing a crucial role in transforming the continent's landscape.

With more than 17,000 employees, CR20G has built a market presence in more than 20 countries, including Angola, Mozambique, Uzbekistan and Mongolia.

Apart from the design and construction of transportation infrastructure, CR20G's business scope includes real estate development, manufacturing, logistics and trade, railway transportation, environmental protection, engineering project inspection, design consulting and training.