by Ports.Co.Za

African development

Chinese eye coal terminal and railway to Beira

Chinese eye coal terminal and railway to Beira
china.jpg

China’s Kingho group has revealed plans to build a second coal terminal at the Port of Beira, along with a new railway to the coalfields near Moatize in Tete Province.

Details were announced by Qing Huahuo, Kingho’s chairman during a meeting with Mozambique president, Armando Guebuza, who was on a week-long visit to China when he met Qing Huahuo in Shanghai.

Guebuza is reported to have taken with him more than a hundred development projects with the intention of finding public and private investors.

According to Mozambican news agency AIM the chief executive of the Kingho group visited  Mozambique in 2012. At that time the railway project was discussed, which revealed plans to build a new railway from Moatize to Beira via Chimoio in Manica Province .

This is a more direct route than the existing railway that dates back to Portuguese rule and which runs north of the Zambezi River until it crosses the river at Sena, which gave the railway its name. From Sena the existing railway runs south to Dondo on the Beira – Zimbabwe railway, not far out from Beira.

The proposed railway would run in much the same direction as the main road from Tete to Bandula, near Chimoio.

No details of the terminal at Beira have been given, although AIM described it as a new port but this may have been a translation error.

 

Vale cuts its production estimate by 30%

In a related matter Vale Moçambique has reduced its projection for coal exports from Mozambique in 2013 by 30%, from 4.9 million tons to 3.4 million tons, the company’s mining operations director, Altiberto Brandão has announced.

Vale Moçambique was forced to declare force majeure in February after flooding interrupted deliveries of coal to the Port of Beira along the Sena Railway, leaving the mining company unable to meet contractual obligations.

Deliveries have also been affected by the generally suspect state of the Sena railway and other inadequate infrastructure. Nevertheless, Brandão was confident enough to say that production in 2014 would total 6.4 million tons, increasing to 9.2mt in 2015. Vale was meanwhile investing in increasing production capacity to 11 million tons.

 

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