South African-based Comazar, in which state-held Transnet owns 31,6%, has been selected to administer the 106-year-old railway line that runs from Addis Ababa to Djibouti in east Africa, the Chinese news agency Xinhua reported on Monday.
Citing sources close to the Ethio-Djibouti Railway Company, the agency reported that Comazar will be authorised to operate the railway for the coming 25 years. This is after it defeated the Indian company RITE in a fierce bid battle.
The sources said the winner would be made public after the railway company’s board approves it, adding that further negotiations will be held between the board and Comazar.
Over the years, the 1 000km railway was jointly managed by France — later Djibouti — and Ethiopia. In recent years, the railway failed to give efficient and effective services to travellers.
Comazar has been active in at least 15 African countries — including Cameroon and Madagascar — and has established relations and partnerships with both African and international investors, as well as with commercial banks and international lenders.
While upbeat about the South African railway operator’s prospects of landing the contract, Comazar CEO Eric Peiffer told I-Net Bridge that the authorities were yet to announce who the successful bidder was and added that the operator was still awaiting formal communication to that effect.
“The project is still being evaluated but we are confident we’ve put together the best bid,” he added.
The railway operator is 4,5%-held by management, Bolloré Group of France has 17% while 47% is in the hands of Sheltam, which is in turn 50%-owned by Johannesburg-listed Grindrod. — I-Net Bridge