Minerals power northern Mozambican rail

Three major rail projects in northern Mozambique are in varying stages of development. All are being undertaken in order to move millions of tons of coal from the Tete province through to the ports. First to be refurbished is the Sena line from the Moatize coal basin to the port of Beira. It has a design capacity of 6.5 million tons a year (mtpa). The line is shared by the three main mine operators: Vale 61.5% (4 mtpa), Rio Tinto 30.8% (2 mtpa) and Beacon Hill 7.7% (0.5 mtpa). There are plans to increase capacity to 12 mtpa, but the current port infrastructure cannot handle more than 6.5 mtpa. Due to come on stream in December is the Nacala line, which will link the coalfields to Vale’s newly constructed port facility in Nacala-a-Velha along 912 km of track. The line is planned to carry more than 11 million tons a year (mtpa) by the end of 2015, growing to 13 million tons in 2016 and 18 mtpa in 2017. Concerns that Brazilian miner Vale will restrict other miners from using the line it paid for has led to investigations into a third 525-km line, from Moatize to the port of Macuse. Plans for the greenfield rail and port development are at an advanced stage. Thai Mocambique Logistica signed two concession agreements to build the rail line and new port facility in December 2013. If built to plan it will have a capacity of 25 mtpa by 2018. The cost is estimated at US$3.5 bn. Thai Mocambique Logistica consists of Italian Thai Development Company 60%, CFM (State-owned Mozambique rail and port company) 20% and CODIZA (Zambezia Integrated Development Corridor) 20%.