Portuguese-Chinese consortium builds railway and port in Mozambique

A contract to build a railroad and a deepwater port in Mozambique has been awarded to a 50/50 consortium made up of Portuguese group Mota-Engil and China Civil Engineering Construction (CCEC), said the chief executive of the concession company.

José Pires da Fonseca, CEO of TML – Thai Mozambique Logistics, told Portuguese weekly newspaper Expresso the contract was worth US$2.3 billion and had been “awarded in a tender by the first Portuguese-Chinese consortium set up to carry out an international project.”

This work will take 36 months to build a 500-kilometre railway, linking the coal mines of Moatize to the port of Macuse, in Zambezia province, located 1,600 kilometres north of Maputo.

“The railway line should start operating in 2021,” said Pires da Fonseca, admitting that “initially the port of Macuse should process about 30 million tonness of coal, increasing to 100 million tonnes in the fourth phase.”

Pires da Fonseca told the newspaper that customers buying this coal from Moatize are steel mills in India, Japan and China and others, which are companies that manage thermal power plants, are located in India, Thailand and China.

The consortium of Mota-Engil with CCEC won this tender against competing proposals from Brazilian construction company Andrade Gutierrez, the China Railway Construction Corporation (CRCC) and China Harbour Engineering Company, and from Turkish company Yapi and Korea’s GS.

The shareholders of TML – Thai Mozambique Logistics are Italian Thai Development, with 60% of the capital, Mozambican port and rail company CFM with 20% and the Zambeze Integrated Development Corridor (Codiza), with the remaining 20%. (macauhub)