China Machinery Engineering and Mota Engil to Build Revived Mozambique Port-RailwayProject

The long-delayed coal port in Macuse, Mozambique, is set to go ahead, with infrastructure do be built by China Machinery Engineering and Mota Engil to Build Revived Mozambique Port Project.

According to Bulk Materials International, construction is set to commence in mid-2024 on 5.3 square kilometres of land earmarked for the project, near the Zambezi River mouth.

Despite diminished interest in Mozambique’s coal industry, Thai Moçambique Logistica (TML)   aims to proceed with its long-term investment, with USD 500 million already secured for the project.

Chinese-funded Moatize-Macuse Logistics Corridor scheduled to launch in 2019

TML obtained a concession from the Mozambican government in 2013 to construct and manage the port and railway, originally aimed at overcoming transport limitations hindering coal industry growth. Delays have occurred due to global constraints on thermal coal demand.

The specific coal types TML plans to handle remain undisclosed, though Mozambique possesses both coking and thermal coal.

The port’s potential extends to timber exports, situated north of Quelimane in Zambézia province.

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TML was initially to operate the project with a 60% stake alongside Mozambique’s Codiza consortium, the country’s freight rail operator, Portos e Caminhos de Ferro de Moçambique.

Plans also include a 525km railway linking the port to Tete Province’s coal mines, with a spur line to Chitima. This route offers a shorter alternative compared with Beira or Nacala ports.

Contracts were awarded to Mota Engil Mozambique and China Machinery Engineering Corporation for railway construction, initially targeting 25 Mtpa capacity, expandable to 100 Mtpa.

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Funding discussions, initially involving Sinosure and Chinese banks for the USD 3.3 B project, likely evolved over the years, indicating increased financial requirements.

 

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