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Raft of projects generates optimism

17 Oct 2024 - by -
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The logistics industry in Mozambique is set for significant growth, especially as more projects come online. According to Andreas Kuzza, senior management advisor at Manica, the company has already experienced a surge in activity, driven by port developments across the country which are boosting transit cargo volumes. “There’s a significant increase in transit cargo, with a lot of commodities from South Africa now finding their way through Maputo,” he told Freight News. The growth is bolstered by a substantial investment drive in port infrastructure, which he believes will have long-term benefits for the logistics sector. “Geographically, it makes sense to use Mozambique, given its strategic position along the southeastern coast. It is a natural gateway for regional and international trade, particularly for landlocked neighbouring countries seeking efficient routes to global ma rke t s."Kuzza highlighted that the anticipated revival of the onshore LNG project at Afungi by Total was a key focus for the logistics industry. “While teams are on-site and preparatory work is under way, the situation remains uncertain until the force majeure is lifted—it’s still very much a waiting game,” Kuzza explained. In the meantime, Pemba port is expected to see a significant increase in activity as more companies choose barging over the riskier overland routes.The logistics sector is also closely monitoring developments in other major projects, such as the Temane power plant, which is 92% complete and aims to convert Mozambique's reliance on charcoal to LPG gas. Additionally, the first wind park in Namasha is in the planning stages, and a new 1.2-gigawatt gas-fired power plant in Matola is set to commence, with a regasification unit to be installed. Renewable energy projects are also increasing across the country. While the Guambe solar power plant has just been commissioned, several more are in the pipeline.The country is also moving ahead with the Goba wind power plant near Namashe, in the southern province of Gaza. While the EPC has not been announced as yet for this project it could see as many as 40 wind turbines go up. There are also hydropower projects such as the one planned for Nampande that bode well for the logistics sector.Kuzzo said it was not just projects but also an increase in mineral volumes that was positive. “We are seeing more graphite movements, with substantial reserves in the country, while there has been an increase in the volumes of lithium moving out of Zimbabwe in particular.”Corridors like Beira that connect Zambia and the DRC to the eastern seaboard remain busy, with the demand for critical minerals only increasing globally.Asked about challenges, Kuzza pointed out that infrastructure, such as inadequate road and bridge capacity, continued to be significant hurdles. “Moving heavy equipment is difficult due to the condition of roads, and the bridges have very limited capacity,” he said.Looking ahead, Kuzza remains optimistic. Mozambique is a resilient country with a 2 500-kilometre coastline, rich in resources, and while challenges remain, there are also plenty of opportunities,” he said. LV

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Mozambique 18 October 2024

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