Malawi’s Ministry of Transport and Public Works has signed a memorandum of understanding with China’s Xiao Xiang Investment to expand Lake Malawi’s shipping fleet and develop new port infrastructure in Salima.
The agreement, signed in Lilongwe, covers the construction of four vessels – two for dry cargo, one fuel tanker and one passenger ship – alongside a new port facility at Chipoka.
Principal Secretary in the Ministry of Transport and Public Works, Bright Kumwenda said the timing of the project was crucial because Malawi Passenger Service’s flagship passenger vessel, the MV Ilala, is aging and needs major works.
He said the arrival of modern ships would allow the Ilala to be taken out of service for rehabilitation without disrupting lakeshore communities that rely on passenger transport.
“This will strengthen water transport, support cross-border trade, and make it easier for our agricultural and mineral products to reach markets,” Kumwenda said.
He noted that the MOU also aims to reduce Malawi’s dependence on road freight by strengthening water transport, which he said would lower logistics costs, ease pressure on the M1 highway and open up cheaper trade routes across the region.
Xiao Xiang Investment managing director Chen Cheng said the MOU is intended to address Malawi’s transport challenges and lower the overall cost of doing business.
He said the company plans to build additional tankers and freight vessels and upgrade inland lake ports, including the Chipoka ferry terminal, to improve the efficiency and volume of transportation.
Cheng said freight shipping would strengthen Malawi’s freight corridor links to ports in Tanzania and Mozambique, while water transport would also reduce damage to the M1 caused by heavy trucks and help keep services running during the rainy season.
JN/APA