Agencia de Informacao de Mocambique (Maputo)
24 October 2009
Maputo — The Nacala port and rail system in northern Mozambique is to benefit from investment of 1.6 billion US dollars to enable it to handle coal exports from Moatize in the western province of Tete.
The agreement to this effect was signed in Nacala on Friday by Mozambican Transport Minister Paulo Zucula, the chairperson of the Mozambican group Insitec Investments, Celso Correia, and the chairperson of the Brazilian mining giant Vale, Roger Agnelli.
Vale is one of the two companies that have been granted mining concessions in Moatize (the other is the Australian company Riversdale). Insitec is the largest shareholder in the Northern Development Corridor (CDN), the consortium that operates the Nacala port and railway.
The huge investment envisaged has been dubbed "Nacala XXI", and has become necessary because the Sena line between the Moatize coal basin and the port of Beira will not be able to handle all the coal exports once the mines are running at full capacity in a few years time.
Vale and Riversdale have both been looking at alternative ways of moving the coal, including shipping it down the Zambezi river on barges.
Vale has now reached the conclusion that it makes economic sense to use Nacala, often regarded as the best deep water port on the east African port. Unlike Beira, Nacala does not require dredging and can take ships of any size.
This, however, will require building a new railway to link Moatize to the Nacala corridor. About 100 kilometres of the new line will cross southern Malawi. The existing Nacala-Malawi line will be strengthened, and by the end of the project will be able to move 20 million tones of cargo a year.
Presenting the project at the Nacala ceremony, the Insitec general manager, Giva Rehamtula, said that "Nacala XXI" is a partnership between the government, Vale and Insitec to develop the Nacala Corridor which has been under negotiation for more than a year.
"The objective of this project", he said, "is an integrated logistics system between Mozambique, Malawi and Zambia, using the singular advantages of Nacala port via a competitive rail system".
The investment in port and railway infrastructure and equipment, and in training and management, he added, will allow CDN to act as a lever in developing strategic sectors of the Mozambican economy.
Currently the port is severely underused, only handling 950,000 tonnes of cargo a year, while the railway only moves 250,000 tonnes.
Rehamtula stressed that the Nacala Corridor is not competing with the Beira Corridor, but complementing it in handling the mineral wealth of the region.
Over 200 kilometres of new railway will be required, linking the Sena line to the Nacala Corridor via Malawi. The current port facilities will be expanded, and a new multi-use terminal will be belt in the adjacent district of Nacala-a-Velha.
Rehamtula said that the product will stimulate development of the area that falls within the influence of the Nacala Corridor. It will increase Mozambique's Gross National Project, improve the balance of trade, generate sustainable jobs, and create a supporting fabric of local businesses.
"We want to improve the quality of life wherever the trains go", he declared.
Malawi's commitment to the project was shown by the presence at the event of its Transport Minister, Kumbo Kachali.
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