Sena railroad in Mozambique needs over US$200 million

14 August 2007

Maputo, Mozambique, 14 Aug – The Sena railroad will need an additional investment of US$200 million to guarantee the transport of coal from the Moatize mining project, according to Mozambican newspaper Notícias.

The Sena line links the railroad stations of Dondo, in Sofala province to the coal town of Moatize, in Tete, and includes the branch lines of Inhamitanga/Marromeu and Mutarara/Vila Nova da Fronteira, with an overall length of 652 kilometers.

When the reconstruction of the line is concluded, which is expected to occur in May 2009, Brazilian company Companhia do Vale do Rio Doce (CVRD) plans to transport 10 to 15 million tons of coal per year by rail.

To that amount coal from other companies also interested in Moatize will be added. These companies are currently in negotiations with the Mozambican government and also plan to transport their coal using the Sena railroad.

According to figures supplied by Adelino Mesquita, the executive director of reconstruction work on the Sena Line, current work, budgeted to cost US$175 million, will ensure transport of a total of 6 million tons per year.

As well as the additional investment in the railroad to allow it to deal with cargo, the paper said it was also necessary to build a new coal terminal at the port of Beira and to drag the access channel for 60,000 ton ships. (macauhub)