6 minute read
Infrastructure Projects
The Maputo-Catembe Bridge
When the Maputo-Catembe Bridge was officially opened on November 10, 2018, it meant more to most Mozambicans than outsiders looking in could know. The project had first been mooted approximately 30 years before, but several years of economic, social and political upheaval meant construction works were always put on hold. For Mozambicians, its arrival stood for a new era of optimism for their country and the end of civil war politics.
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A total of 187 kilometres of road were added at either side of the bridge - the biggest suspension bridge in Africa - making the capital much more accessible than ever before. The bridge and its adjoined road network also cuts the journey time between Maputo and the border with South Africa by 4.5 hours to just 90 minutes. The first direct bus route between Durban and Maputo opened up months after the bridge opened.
The MPDC Master Plan
The bridge, however, is just the centerpiece of a range of large infrastructure projects in Mozambique which will shift its trade potential up a gear. The Maputo Port Development Company (MPDC) was the country’s biggest investor in infrastructure between 2012 and 2016. Its Master Plan envisages $2 billion in logistics infrastructure development, approximately $1 billion of which has already been delivered.
The fact that the MPDC is effectively a joint venture between the Mozambican Railway Company, (Caminhos de Ferro de Moçambique) and several private players in shipping and logistics, means that there’s much more joined-up thinking in infrastructure development in Mozambique than one might expect. Now, the railway company - which has doubled its freight within a year - has a direct interest in the performance of the ports and vice-versa.
The Port of Nacala
The joined-up thinking also means that Maputo is not the only recipient of infrastructure investment funds. In 2018, the government announced a $273 million rehabilitation and modernization of the Port of Nacala in the north of the country. The port, the deepest port in southern Africa, will provide a logistics base for northern Mozambique as well as for its hinterland countries and should be ready in 2021.
The new port will include a coal port terminal and a direct rail link between the port and the mine, located in the province of Tete, over 900 kilometres away. This should allow Mozambique to significantly ramp up its coal exports, which were 11 million tonnes in 2016 and moved to 22 million tonnes in 2017 - even without the rail infrastructure. And with the rail infrastructure in place, in time it can be used for cargo destined for the port other than coal.
Phase II of the Nambungali-Roma road
At the beginning of April 2020, the African Development Bank (AfDB) announced that it had signed a financing agreement for $34 million for the second phase of the NambungaliRoma road. The project forms part of the Mueda - Negomano Road Project, linking Mozambique with neighbouring Tanzania. The project also complements the recently constructed Unity Bridge which crosses the Ruvuma River between the two countries.
Several social projects also form part of the AfDB package, including local employment on the project and improvement of schools and medical clinics along the route. The road promises to be a boon to Mozambique trade with Tanzania. Mozambique’s exports to its neighbour reached nearly $70 million in 2013 before falling significantly to $24 million in 2018. The hope is that the new route can bring this above 2013 levels to a new patamar.
Private Investment: DP World Maputo Expansion
DP World, one of the most highlyregarded logistics operators has begun significant investments in the expansion and modernization of its container terminal at Maputo, bringing it up to the highest standards available in sub-Saharan Africa. These investments directly contributed, in April 2020, to DP World Maputo welcoming the largest vessel ever to the Port of Maputo, Maersk Shipping Line’s Santa Catarina.
The improvements in productivity and customer-centric operations by DP World (and others) at Maputo Port means that welcoming vessels of this size is now a reality. DP World has created a fixed berthing window program, which means that no vessem waiting time can be achieved for every vessel entering the port . What’s more, ships like these with more TEUs mean make trade easier, creating a new paradigm for the country.
Beira Port Expansion
The fishing industry has long been earmarked as an industry which can improve Mozambique’s food security as well as giving it a further export avenue and options for increasing employment. The expansion of Beira Port is central to this industry. Chinese investment in 2017 brought the port to the highest international standards, while further investment in 2019, with a cost of $120 million, doubled the length of the quay and added extensive cold storage.
Refocusing again on cargo, the importance of the Port of Beira was further underlined throughout the Covid-19 epidemic. As other ports closed to cargo, Beria’s cargo throughput has increased. This year, it is expected that it will handle 2.5 million tonnes of cargo. Beira’s traditionally serves Zimbabwe, Malawi and Zimbabwe, all of which can now be reached by road and rail, which means Mozambique may soon begin fish exports to these countries.
It should be noted that the expansion of cargo at Beira has not been at the expense of safety measures. Quite the contrary, in fact. The port has implemented a range of strictly enforced safety procedures - extensive handwashing, wearing of masks at all times and social distancing - as well as allowing 70% of employees to work from home. All of this will be complemented by an online document uploading system, which removes the need for face-to-face contact.
Dredging at Beira Port
For onlookers, it’s usually easier to pay attention to the visual or highprofile projects such as new ports, airports or bridges. But often it’s the projects which don’t get as many plaudits which can make an ever bigger difference. One such example is the dredging of the access channels and maneuvering channels at Beira Port. In July 2020, the second phase of these works commenced and expected to last a year.
The first phase finished early in 2020, having begun in 2018. The total amount being dredged in the second phase is 1.5 cubic metres and the project will be undertaken by the China National Aeronautics and Transportation Administration. Its completion will provide considerably more leeway for larger ships coming into the port. Now ships of 60,000 tonnes can dock at the port at any time, whereas previous to the dredging, the port was restricted to 30,000 tonne ships.
Niassa Highway Project
Further interconnectivity in Mozambique comes with the inauguration of the Niassa Highway at the beginning of 2020. Running over 200 kilometres, the highway links the two major cities in the northern province, Lichinga and Cuamba. More fundamental is the fact that it provides an international-class road between the port of Nacala and Mozambique’s landlocked neighbour, Malawi.
Whereas rail is typically used by larger companies (such as coal producers) to transport their commodities, the introduction of a better road network in Mozambique provides new trade avenues for smaller, independent producers. The project also involved an upgrade of the Lichinga-Massangulo-Muita stretch of road, which cost $105 million and was financed by the Mozambique government, the AfDB and the JICA.
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