CFM loses US$45 million a year due to Vale Moçambique leaving Sena Line

17 January 2018

Mozambique’s state-owned port and rail manager CFM will lose out on billing about US$45 million per year due to Vale Moçambique’s decision to concentrate coal transport operations on the Nacala railway line, the chief executive of CFM-Centro, Augusto Abudo, told Rádio Moçambique.

Vale Moçambique, which has a coal mine concession in Moatize, Tete province, announced last December that it would stop using the Sena line and the port of Beira to carry coal in 2018, and would focus its operations on the Nacala logistics corridor.

The subsidiary of the Brazilian group Vale intends to increase the 12 million tons of coal exported in 2017 to around 17 million to 18 million tons, which can be transported by the Moatize rail link to the deepwater port of Nacala.

The Sena line and the coal terminal at the port of Beira have a capacity to process about 20 million tons per year, but the port access channel can only accommodate ships of up to 40,000 tons, while the port of Nacala can receive ships with a gross tonnage of up to 180,000.

Abudo also announced that CFM is looking for an entity to finance the modernisation of the Machipanda line, estimated to cost US$150 million, which will be the subject of a public tender to select a contractor.

The Machipanda line, linking the port of Beira to Zimbabwe, has the capacity to transport 1.5 million tons per year, but the political and economic crisis in that neighbouring country has mean that the transported cargo is less than 200,000 tons. (macauhub)