South Africa’s Grindrod plans to expand capacity of Matola coal terminal in Mozambique

23 November 2012

South African group Grindrod plans to expand the capacity of the Matola coal terminal in Mozambique, to 7.3 million tons by March 2013, after which it will launch a project to expand capacity to 20 million tons, said a Grindrod Terminals official.

The terminal currently has a capacity of 6 million tons, part of which is used to carry magnetite, said Sean Rowan, who noted the growing importance of the terminal due to congestion of the railway lines that link similar terminals in South Africa.

The new 20 million-ton terminal will be built from scratch, in two phases in 2016 and 2018, and the current terminal will then be used only for magnetite or iron ore.

Speaking to financial news agency Reuters, Rowan said that the final decision on the new terminal would be made by the group’s board of directors by March 2013.

Rowan also said that the group was negotiating with Mozambican state port and railway company Portos e Caminhos de Ferro de Moçambique (CFM) and with South African group Transnet to expand railway lines alongside the new terminal and with the latter group to reduce tariffs for transporting coal to Matola. (macauhub)