SVM sovereign metals limited

Sovereign Metals (ASX:SVM) logistic route for Kasiya confirmed, page-3

  1. 6,752 Posts.
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    This validates my post 6 months ago or so when I was shot down by some whom always know much more. Confirms what is stated:

    1. 90% of freight is trucked from Nacala port.
    2. I stated the railway line is old - damaged and inadequate in places. The current locomotives are 60-70 years old causing:
    3. Breakdowns - delays and theft from opportunists.
    4. The current unreliable locomotives can only haul 40-45 wagons.

    Now why would the operator invest in 4-5 new locomotives that are only 4-5 years old and further invest another 20 million USD I believe it was to upgrade bridges and tracks in parts of the Nacala corridor. For reliability issues of course that will secure increased freight volume but primarily for expectations of the new mines Malawi will open up to. The new locomotives will:

    1. Ensure reliability and scheduled timetables.
    2. With 4-5 new locomotives with capacity doubling the current from 90 to 100 wagons. That is not for tobacco trust me - for minerals.
    3. WHY 4-5 new locomotives? To scale up freight capacity by running 4-5 continuously with rail sidings - terminals to allow passage of hugely anticipated future minerals cargo.
    4. Who will benefit - all Malawians because their needed goods will be cheaper. Mining companies definitely from many construction materials that can not be sourced locally - many pre fabricated overseas components/modules and of course 20-30 years of end product from mines to shipping - that is a substantial company saving from construction through to shipping concentrate in the case of GBE and probably Mkango or processed minerals like Sovereign and Lotus over LOM - just the main internationals at this stage.

    This is huge and no no overstatement - this is huge. Infrastructure such as this is critical to development pathway along with gained efficiencies and cost reductions and of course all Malawians.
 
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