Operator of Mozambique’s Nacala Port plans to benefit from trade with China

12 December 2006

Maputo, Mozambique, 12 Dec – The operator of Mozambique’s Nacala port plans to build Africa’s largest trans-shipment terminal with a capacity to process 3 million tons of regional cargo per year, the company’s director said.

Fernando Couto, the chief executive of Corredor de Desenvolvimento do Norte (CDN) the concession-holder which manages Nacala Port and the railway linking it to Malawi, said that the group hoped it could benefit from increasing trade with China and India.

Couto also said that CDN was in talks with the Mozambican government and later planned to find partners for the project, which is expected to cost US$150 million, including reconstruction of the railway line.

Estimating that construction could begin within two years and take another two, Couto said that the volume of cargo processed could change from the current 30,000 tons per year to 3 million tons.

The entire project relies on the reconstruction of the railway line linking Nacala to the north-western interior of Mozambique and Malawi.

Couto said that reconstruction of the 1,600-kilometer line would cost US$50 million on each side of the border.

US government agency Overseas Private Investment Corp has granted US$32 million, which has made it possible for state company Portos e Caminhos de Ferro de Moçambique to begin work on the Mozambican side. (macauhub)