Chapter 303
Chapter 303: Lake Malawi Heavy Industrial Zone
The Austrian business delegation had a generally positive impression of Mombasa and East Africa's stability. However, due to skepticism about East African politics, the delegation planned to start by investing in several small factories to test the waters.
Meanwhile, in the south, the area around Lake Malawi was initially planned for Austrian development, but it received little attention. Several factors contributed to this neglect. Firstly, the region was remote, lacking the advantageous location and infrastructure of Mombasa. Secondly, the area didn't possess significant resources to attract investors. Lastly, it focused on heavy industry, contrary to Austrian investors' preference for light industry.
The Hechingen Consortium, now well-funded, took the initiative to invest in the heavy industry around Lake Malawi. Ernst acquired a small steel company in Saarland, Germany, which had gone bankrupt due to the Franco-Prussian War. He also bought a steelmaking plant in Kaffenburg, Austria. These acquisitions formed the East African United Steel Company.
Ernst recognized that steel production was crucial for East Africa's industrialization. He believed that by developing the Lake Malawi Industrial Zone, one-third of the Hechingen Consortium's industries could be transferred to East Africa within three years.
Constantine and Ernst discussed the situation. Constantine mentioned the importance of transportation infrastructure, particularly railways, to facilitate development. He inquired about the progress of the first railway construction, which was experiencing delays due to a lack of technology.
Ernst acknowledged the issues and explained that the Vienna Energy Power Company and Austria were working on the railway, but there were challenges due to insufficient experience in wide-gauge locomotives. He considered adopting established railway standards to expedite progress.
Ernst also mentioned the possibility of using a 760mm narrow gauge railway for coal and iron ore transportation in mining areas. However, most railway standards in East Africa favored gauges of 1435mm and above.
To address this, Ernst sought input on which railway gauge to adopt and listed several common standards: 1435mm, 1524mm, and 1676mm, with variations in some countries. He also mentioned other gauges, such as meter gauge and 1600mm rails.
With the Lake Malawi Industrial Zone's development, East Africa aimed to establish a strong foundation for heavy industry and increase its self-sufficiency in steel production, driving its overall industrial growth and reducing dependence on coastal cities for security reasons.