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.