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New coal port on track – and Covid-19 won’t stop it

13 Aug 2020 - by Liesl Venter
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Despite concerns about the possible impact of Covid-19, construction of a new coal port at Macuse in Mozambique remains on track to start in 2021.That’s according to a spokesman for developers Thai Mocambique Logistica.Rumour has been rife that the project, concessioned in 2013, could experience further delays due to the pandemic and the drop in thermal coal prices around the world.But the developers say that nothing has changed and it’s all systems go for construction to start next year. They believe the new deep-sea port is of vital importance for the logistics of the mining sector in Mozambique as it ensures the opening of the Moatize basin to the international market.“Not only does it unlock the coal basin, but also introduces a more competitive logistics cost compared to more direct competitors such as Australia and Indonesia.”Mozambique has been exporting coal via the ports of Beira and Nacala since 2011. As rail and port infrastructure has improved the country has seen annual exports increase from a mere 0.6 million tons to more than 11 million by 2017.“Infrastructure remains a key constraint for the development of several coal mine projects in the Tete region. At the moment there are three operating mines and several other mine projects waiting to be developed,” says the spokesman. “Considering the operating mines, known projects, and the existing resources, the country has the potential to become one of the world’s top coal exporters.”According to the Mozambican government, developing efficient infrastructure is a key priority and critical to unlocking the value of the country’s natural resources. The goal remains, once infrastructure is in place, to position the country as a key supplier to Asian markets.The Macuse port and rail project represents a total investment of $3.2 billion. The ministry of transport and communications granted Thai Mocambique Logistica the concession in 2013 to build and operate the port and a railway corridor between Chitima, Moatize and Macuse. The railway infrastructure for this 639km stretch of rail will see an investment of around $1.89 billion and connect to the Port of Macuse which will start with an initial capacity of 33 million tons per annum.According to the spokesperson this is extendable to 100 million tons per annum for the transportation of coal and general cargo. Set to be built on the Macuse river, the port will be built in accordance with international maritime standards. While it will predominantly focus on coal it will also have capacity to handle oil and gas as well as containers and other general cargo.Two loading docks for coal that can handle panamax vessels of 80 000 tons will be constructed. A loading speed of 10 000 tons per hour is planned. A coal stock area of 1.2 million tons will be developed alongside the port. A liquid terminal is also on the cards.If construction starts on time and no further delays are experienced the new port is expected to see its first train and vessel arrive by no later than 2023.

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