Delays on Mozambique’s Sena line

Mozambique’s much-anticipated
economic boost from the export
of coal mined to the north is
being delayed, according to
national ports and railways
company, CFM.
According to executive board
director, Adelino Mesquita, the
opening of the line to large coal
volumes could be delayed by
another 18 months.
He says another US$200
million is needed to complete the
upgrade of the 673-kilometrelong
Sena line from mines in the
western Tete province owned
by Brazil’s Vale and Australia’s
Riverdale companies through the
port of Beira.
At an estimated 23 billion
tons, it is one of the world’s
largest untapped coal reserves.
According to Mesquita, Vale
and Riverdale have indicated
that they are willing to fund the
completion of the line upgrade.
Both are also investigating
other avenues. Riverdale is
looking at taking the coal down
the Zambezi and transhipping
it onto larger vessels. Vale
plans to build a new railway
from Moatize in northern
Mozambique that will cross
eastern Malawi to the natural
deep-water port of Nacala.
By 2014, Vale’s output is
expected to be 12 million tons of
coal a year.
In the short term, with exports
due to start between now and
September, the company will
have to make use of the existing
line.
It also faces delays in the
upgrading of the Beira quayside
which, according to CFM
chairperson Rosario Mualeia,
will be ready in September this
year.
Earlier this year the
government of Maputo
threatened to fire Indian
consortium RICON, which
should have finished the job
two years ago. After inspecting
the line himself in February,
Mualeia told reporters that “not a
single kilometre” was in a decent
condition.