Nacala Logistics counts the cost of Covid

Nacala Logistics, which manages the Nacala port and rail link from Tete province, recorded a net loss of US$23 million in the second quarter due to the impact of Covid-19, according to the company. A statement from the company said that the drop in results was due to the reduction in the volume of coal and general cargo transport in the period. During the second quarter the line carried 1.2 million tons, a reduction of around 48% compared to the same period in 2019.“The operating and financial results for the second quarter demonstrate precisely the impact that Covid-19 has had on the company,” the statement says. “In addition, financial obligations contributed to the negative result.” The company was formed in April 2020 through the merger of the names of the different companies providing services on the 912-km Nacala Corridor from Vale’s Moatize mine in Mozambique’s Tete province through Malawi to Nacala. Announcing the merger, Nacala Corridor board chairman Wellington Soares said the integrated brand had been created in order to boost and promote the commercial relationship between the Mozambican companies of the Nacala Corridor, in particular the Northern Development Corridor (CDN) and the Nacala Integrated Logistics Corridor (CLN) and Central East African Railways (CEAR) and Vale Logistics Limited (VLL) of Malawi, as well as with users of their services. CDN is responsible for the development of the port of Nacala. During the second quarter the line carried 1.2 million tons, a reduction of around 48%.