Agriculture in Malawi • Contributes over 35% to national GDP, • Employs over 80% of the labor force • Contributes over 80% of the export earnings
REPUBLIC OF MALAWI Ministry of Transport and Public Infrastructure
Safege Consultants for the European Union and the World Bank Ministry of Transport and Infrastructure
Malawi Transport Sector Multimodal Development and Potential PPP Study 1 : Commodities transport demand
Workshop in Lilongwe, 29th of July 2010, Capital Hotel Lilongwe 8/6/2010
1
8/6/2010
2
PRODUCT : TOBACCO SPECIAL CONDITIONS : PERISHABLE
About Tobacco
LOCAL PRICE
$1.75/kg
NATIONAL PART
RECENT PRODUCTION
• Most valuable production in Malawi (230 000 tons in 2009, 2/3 of exports in value) • actual logistics
INTERNATIONAL PRICE PACKING MODE :
M ODE
ROUTES
Road & Sea
BEIRA
Containerised
DURBAN
232 140 TONS WEIGHT
%
DESTINATION
70%
Central Region
69641,30
30%
Kasungu,Dowa Poland
GROUPING PT
TIME (days)
Germany Beira Route
Auction floors
35 US$79/t/k m
50 US$79/t/k m US$107/t/k m
The Netherlands Durban Route
35 US$120/t/km US$72/t/k m 35 US$120/t/km US$72/t/k m
Spain
45 US$120/t/km US$80/t/k m
Egypt
30 US$120/t/km US$75/t/k m 25 US$120/t/km US$70/t/k m
Austria
30 US$120/t/km US$75/t/k m
Liwonde
Factories (Processing) Lilongwe or Limbe Fumigation containerization
INTERNATIONAL PART
US$70/t/k m US$85/t/k m
The USA Belgium
Southern Region Turk ey
Lilongwe (50%) Limbe Mzuzu
Sea freight Sea freight
35 US$79/t/km
Dedza
Mangochi
Secondary auction floors Warehousing of wet Tobacco in railway stations Intermediate buyers to collect, group and sell
$/T/Km
Road to fob Road to fob
Mchinji
Mzimba
Satellite depot
COST $/TON
Lilongwe,
Rumphi,
Collection of bales
279 TONS
EXPECTED PRODUCTION 2020 ORIGIN
162498,70
Northern Region Russia
Fertilizers Green leaves
$
BALES
40 US$120/t/km US$120/t/k m
PACKING MODE
CONTAINERS 40' high cube containers
232 140 TONS
RECENT EXPORTS M ODE
CORRIDOR WEIGHT
Road & Sea
BEIRA
Containerised
DURBAN
%
DESTINATION
GROUPING PT
Germany
Beira Route
162498,70
70%
Central Region
69641,30
30%
Kasungu,Dowa Poland
Break Bulk to Joburg Where it is fumigated and sealed in containers for Durban
279 TONS
EXPECTED EXPORTS 2020 ORIGIN
Lilongwe,
The USA
Dedza
Belgium
Mchinji
TIME (days)
COST $/TON
$/T/Km
Road to fob
Sea freight
35 US$79/t/km
US$70/t/k m
35 US$79/t/k m
US$85/t/k m
50 US$79/t/k m US$107/t/k m Durban Route
35 US$120/t/km US$72/t/k m
The Netherlands
35 US$120/t/km US$72/t/k m
Northern Region Russia
45 US$120/t/km US$80/t/k m
Rumphi,
Spain
30 US$120/t/km US$75/t/k m
Mzimba
Egypt
25 US$120/t/km US$70/t/k m
Southern Region Turk ey Mangochi
30 US$120/t/km US$75/t/k m
Austria
40 US$120/t/km US$120/t/k m
Liwonde
NOTES:
Export (June to november)
8/6/2010
Nacala Beira
Durban 3
Dar Es Salam
Tobacco exports in 2009 232 000 tons
Mtwara
Criteria for exports
Rumpi Mzimba
Kanona
4
Processing and packaging
Conditions At Port
Time of arrival
Pricing of land leg
Long Term contracts
Current Choice of corridor
Tobacco (1st Logistic Chain)
Green leaves in Bulk Fumigation at Joburg then sent to Durban
Very important
Less that sea leg
X
Road to Joburg
Tobacco (2nd logistic Chain)
Fumigation at the factory Limbe or Lilongwe In 1000 kg sacs then containerised
Good storage and handling facilities Idem
X
Road to Beira Nacala rail corridor
Exports Chipata
Nacala Moatize Tete Chiwawa Nsanje Port Liwonde Mangochi
Malawi is 60% dependent on tobacco exports for its non aid foreign earnings. The expected growth rate for 2020 is not that great due to Anti Smoking lobby in Western markets. Malawi has diversified into other major cash crops such as Sugar,Tea,Cotton, Coffe and pulses The discovery of Uranium in Karonga at Kayerekera will also boost the economy. Mining already in progress and exports comenced in December 2009
Criteria of choice of an export transport chain for Tobacco
Mbeya
Luzaka
8/6/2010
Harare 162,000n ton (70%)s
Chinde
Very important
Beira 69,641 tons(30%)
8/6/2010
Joburg
Durban
Germany, Poland, USA, Belgium, Russiia, Spain, Egypt, Turkey
Conditions of a possible transfer to Nacala’s corridor (in 2015)
Germany, Poland, USA, Belgium, Russiia, Spain, Egypt, Turkey
5
8/6/2010
Railway in good conditions between Lilongwe and Nkaya
Use of railway from Auction Floor to factories
Use of Nacala Rail Corridor
6
Dar Es Salam
Tobacco exports in 2020 279 000 tons : Possible scheme
About Tea and coffee
Mbeya
Mtwara Rumpi Mzimba
Kanona
Nacala
Chipata
2nd major cash earner for Malawi, after tobacco and registered tremendouth growth Good production necessitates good rains Very small volume (52600 tons in 2009 and expected 60000 tons in 2010) Localized in Tylolo and Mulanje area (East of Blantyre) and around Nkata Bay Actual logistics
• • • • •
(70%)
Moatize
Luzaka
Tete
Germany, Poland, USA, Belgium, Russiia, Spain, Egypt, Turkey
Chiwawa
Harare
Liwonde Mangochi
Conditions
Joburg
8/6/2010
Use of Nacala Rail Corridor
Beira
(30%)
Use of railway from Auction Floor to factories
Railway in good conditions between Lilongwe and Nkaya
Durban
Germany, Poland, USA, Belgium, Russiia, Spain, Egypt, Turkey
7
PRODUCT : TEA
$
INTERNATIONAL PRICE
NATIONAL PART
PACKING MODE :
Containerised packed in paper sacks EXPECTED PRODUCTION 2020
52 559 TONS
RECENT PRODUCTION MODE
ROUTES
WEIGHT
%
ORIGIN
Road
Mulanje Tholo to Blantye
Tylolo, Mulanje
Road
Nkhata Bay
Northern Region
to Blantye
Nkhata Bay
Criteria for exports/imports
Processing and packaging
Conditions At Port
Time of arrival
Pricing of land leg
Long Term contracts
Choice of the corridor
Tea
Packed in paper sacks then containerized
Good storage
Very sensitive
Not important
?
Not transfer to rail to be expected
8/6/2010
8
Tea Exports 52559 tons in 2009
SPECIAL CONDITIONS : SUBJECT TO INFECTION
LOCAL PRICE
DESTINATIONGROUPING PTTIME (days)
5255 tons (10%)
Mbeya
68 330 TONS
Mtwara
COST $/TON$/T/Km
Nkhata Bay Kanona Chipata
Nkahta Bay PACKING MODE
Rail
Nacala
Road
Beira
Road
Durban
Road Road
Johannesburg Beira Mombasa
WEIGHT
Nacala
CONTAINERS
52 559 TONS
RECENT EXPORTS CORRIDOR
Dar Es Salam
Kenya
US$254.09/kg
Southern Region
INTERNATIONAL PART
MODE
70% Durban (fumigation in Joburg) 10% Mombasa 10% Johannesbourg (regional market)
Treatment in Blantyre Processing and packing in paper sacks
Leaves collection Chinde
??
Blantyre plant
Trucks
Nsanje Port
EXPECTED EXPORTS 2020
%
ORIGIN
DESTINATIONGROUPING PTTIME (days)
Moatize
Luzaka
68 330 TONS
Tete
COST $/TON$/T/Km
Tyolo
Transit Time Road freight to ports Sea freight to destination 0%
Nsanje Port
US$36
5255,9
10%
70% The Uk
36791,3
70%
5255,9
10%
South Africa Holland
5255,9
10%
Kenya
US$79
30% South Asia 54% The Uk 46% USA
Harare US$75.4
5255 tons (10%)
US$79
US$98
US$126.9
US$75.4
US$79
US$107
US$93 US$79
0 US$72
Tyolo
Mulanje
Chinde 36,791 tons (70%)
Beira
US$160.7
36,791 tons (70%) UK (70%), South-Asia, Holland NOTES:
8/6/2010
Tea is the second major cash earner for Malawi to tobacco and has registered tremendous growth. 70% of tea goes via Durban port, 10% via Mombasa port ,10% via Beira and 10% is sold to Johannesburg in Republic of South Africa. Major buyers of tea in order of merit as per 2008 statistics are as follows: UK, RSA,Kenya,USA,Pakistan,Holland, Botswana and Canada 2010 crop is projected at 60000 metric tonnes due to good rains. The Chperoni rains will have an impact as well.
Joburg 9
8/6/2010
South Africa
Luchenza warehouses Road with escarpment
Railway from Chiromo To Luchenza, Limbe, Nacala
Transport by dedicated lorries of raw cane . 6 km from the mill: MK 450 per ton . 40 km from the mill : MK 1000
Nchalo Sugar factory and estate Local Markets : Central and Northern Regions
Dwanga Sugar Mills
Nchalo Sugar Mills
Improvement : dedicated railway line to allow cheeper transport of raw cane Improvement : Replacement of the Chimoro bridge and rehabilitation of the railway between Limbe and Bangula
8/6/2010
Southern region Transportation problems For Sugar
Road to Bangula station
Exports : Zambia, Tanzania, Rwanda, RDC Chiromo bridge to rebuild
Trucks 16,8 to 20% of total cost
Nchalo (Chiwawa District
How to better capture possible improvements
Road to Beira
• One of the major production in Malawi in volume (350000 tons in 2009) corresponding to 3.5 million tons of sugar cane. • 2nd major export in volume (280 000 tons of sugar in 2009) • 3rd cash earner for Malawi • Actual and expected logistics
Nkhotakota (Central Province
10
UK (54%), South Asia (46%)
Rail to Nacala
About Sugar
Location of production
Durban
197 km
Luchenza Warehouse
954 km
Truck
Train
47 km
954 km
Nacala
Bangula warehouses
Bangula – Nsanje abandoned rail Dedicated railway line to allow a cheeper transport of raw cane
Train
Containers
Train
Nacala
11
8/6/2010 Distance between the railways Aprox. 50km
Nsanje linked by road only
Replacement of the Chimoro bridge and rehabilitation of the railway between Limbe 12 and Bangula
Road to the lake in a swamp
PRODUCT : SUGAR SPECIAL CONDITIONS : NONE
LOCAL PRICE
$
INTERNATIONAL PRICE PACKING MODE :
NATIONAL PART
Poor embankment, out of the estate
RECENT PRODUCTION MODE
ROUTES
Road
Poor lake service, no Ro-Ro
Dwanga Sugar factory and estate
Road
WEIGHT
%
ORIGIN
$
C0NTAINERISED packed in 1000kg bags EXPECTED PRODUCTION 2020
280000 TONS
DESTINATION GROUPINGTIME PT (days)
Nchalo in Chik wawa
Southern Region
to Blantye
Nchalo in Chik wawa
Dwangwa
Northern Region
to Blantye
Dwangwa in Nk hota k ota
TONS
364000 COST $/TON
$/T/Km
Railway to Nacala and LilongweZambia in Chipoka
INTERNATIONAL PART
PACKING MODE
RECENT EXPORTS
Northern region Transportation problems For Sugar
CONTAINERS
packed in 1000kg bags EXPECTED EXPORTS 2020
280000 TONS
MODE
CORRIDOR
WEIGHT
Rail
Nacala
140000 Mt
%
ORIGIN
DESTINATION GROUPINGTIME PT (days)
(South Mw) Dwangwa (C/Mw) Road
Beira
126000 Mt
45% Chik wawa (South Mw) Dwangwa (C/Mw)
Road
Other
14000 Mt
5% Chik wawa (South Mw) Dwangwa (C/Mw)
NOTES:
8/6/2010
13
Dar Es Salam
Sugar exports (actual)
$/T/Km
50% EU
35
US$36
US$80
40% USA
50
US$36
US$107
10% Far East
45
US$36
50% EU
35
US$79
US$80
40% USA
50
US$79
US$107
10% Far East
45
US$79
US$98
3% DR Congo
12
US$126.9
US$170
1% Egypt
30
US$79
US$70
2% local
1
US$79
US$107
US$98
Sugar is the THIRD major cash earner for Malawi and has registered tremendous growth. EU ans The US increased the quota for Malawi sugar as one way of promoting trade with the third word countries such as Malawi. This is an indirect way of providing aid to the developing countries. The quota and demand for Malawi sugar has increased substantially.
By 2010, we anticipate the sugar production figures to hit record 364000 metric tonnes. It is a furute growth area for the Malawi economy. 8/6/2010
Mbeya
Mtwara
Mtwara
Dwenga
Kanona
Dwenga
Kanona
Chipata
Chipata
Nacala Dwenga
Moatize
Luzaka
Nacala Dwanga
140000 t (50%)
Chiwawa
Moatize
Luzaka
Tete
364, 000 t (50%)
Tete Chiwawa
EU (50%), USA (40%) Far East (10%)
Nsanje Port
Harare
Conditions
126000 t (45%)
Chiwawa
Chinde
Chinde Replacement of Chiromo bridge railway rehabilitation between Bangula and Limbe
Chiwawa
Beira 12000 t (5%)
Joburg
EU (50%), USA (40%) Far East (10%)
Nsanje Port
Harare
8/6/2010
14
Dar Es Salam
Expected Sugar exports in 2012-2015 Use of Lake service and Nacala Corridor
Mbeya
TONS
364000 COST $/TON
Transit Time ( days) Road freight to ports Sea freight to destination 50% Chik wawa
Beira New containers boats or barges Lake service in use
EU (50%), USA (40%) Far East (10%)
Durban
15
Joburg
8/6/2010
Durban
16
PRODUCT : COTTON SPECIAL CONDITIONS : NONE
About Cotton and Garnments
LOCAL PRICE
• •
$
INTERNATIONAL PRICE
NATIONAL PART
RECENT PRODUCTION
• •
0.33/KG
Cotton is grown up in the same places than sugar (along the Shire River) and around Salima Cotton production may be extended through the green belt program and the development of Chikwawa Region Low density => the road transportation is competitive Major challenge due to a sharp fall of prices in 2008/2009 season (minimum price set up by GOM of 60 MKw/kg but traders were buying 25 MKw/kg
27 560
Far East (China) South East Asia
Treatment
Conditions At Port
Time of arrival
Pricing of land leg
Cotton
Bagged in hessian sacks of 120kg each
Good storage
Not sensitive
Important
8/6/2010
Long Term contracts
$/T/Km
Southern Region
to Blantye
Chik wawa & Balak a
%
DESTINATION
Balak a,Salima
Central Region
to Blantye
Salima & Ntcheu
RECENT EXPORTS MODE
CORRIDOR
Road
Beira
Road
Processing and packaging
GROUPING PT
Chik wawa
27 560 WEIGHT
COST $/TON
PACKING MODE
CONTAINERISED Bagged in hessian sacks of 120kg each 38 580 EXPECTED EXPORTS 2020
TONS
ORIGIN
GROUPING PT
Cost$/t/km
TONS %
TIME (days)
DESTINATION
TIME (days)
COST $/t/km
Transit Time
Cotton collection
Criteria for exports/imports
TONS
ORIGIN
TONS
ROUTES
Road
INTERNATIONAL PART
40% Beira 60% Durban ..% Johannesbourg)
Trucks
CONTAINERISED Bagged in hessian sacks of 120kg each EXPECTED PRODUCTION 2020 38 580
MODE
Road
WEIGHT
$
PACKING MODE :
Durban
11024 16536
40% 60% 0%
70% Far East ( China)
50
US$79
30% South Asia
45
US$79
US$98 US$92
54% Far East ( China)
50
US$126.9
US$98
46% South Asia
45
US$126.9
US$92
N/A
US$93
0
Road
Johannesburg
0% South Africa
NOTES:
Cotton is another key export commodity for Malawi.The crop has faced a major challenge recently due to sharp fall of prices in in 2008/09 season. The government set a minimum price of 60Mw Kwacha per kg BUT the traders were buying at 25 Mw kwacha per kg. This discouraged the farmers and coupled with dry spell the crop production for 2010/11 season has fallen by 50%. The World Bank and Cotton Development Trust have come in and planned to increase production for the future. Price at 50Mk/ kg for 2010/11 season equivalent to 30 US cents per kilogram.
Choice of the corridor Not an easy market for rail
17
8/6/2010
18
Cotton exports in 2020 Use of train to Nacala Or intermodal to Nsanje, Chinde, Beira ?
Dar Es Salam
Cotton exports in 2009 Use of Roads to Beira and Durban
Mbeya
Dar Es Salam Mbeya
Mtwara
Mtwara
Dwenga
Kanona
Dwenga
Kanona
Chipata
Chipata
Nacala Dwenga
Nacala
Moatize
Luzaka
Dwenga
Tete
Moatize
Luzaka
38,580 t (40%)
Tete
Chiwawa
Chiwawa
Nsanje Port
Harare 38,580 t (40%)
11,024 t (40%)
Chinde
Chiwawa
?
Nsanje Port
Harare
Far East (70%), South Asia (30%)
Chinde
Chiwawa
16,536 t (60%)
Beira
Beira
Far East (64%), South Asia (46%)
Joburg
8/6/2010
Durban 19
Far East (70%), South Asia (30%)
8/6/2010
About Maize • •
• • •
Joburg
Durban 20
About Maize Trends in domestic gaps
Second most important commodity produced by Malawi, in terms of tonnage and first in strategic importance (daily food of all Malawians) 3 to 3.5 million tons per year … with huge silos around Lilongwe and major cities (impossible human consumption : 365x 16000000x 2x 0,2 kg = 2.336 million tons per year …. Even babies in this hypotesis are eating their 0,2 kg portions 3 times per day !!) Malawi could be a major regional exporter (Eastern, East-Central Africa, Kenya, Zimbabwe) Road = unique transportation mode for bulk maize (traditional means) Road = unique transportation mode for processed maize
Possibilities Criteria for regional distribution
Processing and packaging
Points of processing
Time of arrival
Price of transport
Choice of the corridor
Within Malawi
In sacs , limited exports
Blantyre silos Eastwards and Southwards
Not very important
Very sensitive
Distribution around the lake to Northern cities and to Monkey Bay
Reginal exports
In sacs , limited exports
idem
Not very sensitive
Very sensitive
Use of railways (to Zambia, Tanzania, Mozambique, …)
8/6/2010
In February 2008, the price of maize had more than doubled from MWK21 per kg in the previous year (Feb 2007) to MWK43 per kg. From January 2008 to March 2008, the price had increased by 10%, with March representing the peak of the lean season. The maize harvest period which started in March in some parts of the country did not result in the weakening of the prices, as expected. As such, maize prices have kept on an upward trend, currently reaching over MWK60 per kg. The high volatility of prices between the harvest (March – June) and lean season (October – February) is typical of thin Maize markets. Farmers are compelled to engage in distress selling at low prices during the harvest period, only to buy back the maize during the lean season at much higher prices. Over 80% of the smallholder farmers end up being net food buyers.
21
Maize local distribution Use of the lake and railway distribution systems
8/6/2010
22
Dar Es Salam
About Cassava
Mbeya
Mtwara
Kanona Chipata
Nacala Moatize
Luzaka
Tete Chiwawa Nsanje Port
Harare Chinde
Push factors to grow cassava . 2002 drought . Withdraw of input subsidy, . Reduced urban purchasing power and dwindling farm sizes. Pull factors . Relative ease of cassava cultivation, . Utility of ‘sweet’ cassava as an uncooked snack food, . Lower price of the raw roots in urban markets compared to maize
Beira
8/6/2010
Joburg
Durban
23
8/6/2010
24
Alternative Supply Channels in Malawi’s Cassava Value Chain
Transportation of Cassava •
From the producing areas to the markets : Land rovers (especially in Lilongwe) and lorries (3, 7 to 10 tons) - return trips from original trips/places. A majority of the traders arrange their own transport. In some cases, especially for smaller markets, a number of wholesalers will hire one vehicle to transport their produce to a given market. Sacs (50 or 90 kg) or bulk in the vehicle. For areas within the vicinity (20-30 kilometers from the city), bicycles are used to transport cassava. These can transport cassava of up to a 50 kilograms bag.
• • • •
The total cassava production figure is based on the 2007 crop estimate from the Ministry of Agriculture of 3,194,994 tons. Out of the total 26,6% is sold of which 80% as fresh cassava
8/6/2010
25
Mbeya
Dar Es Salam
8/6/2010
26
RICE ALTERNATIVE CORRIDORS
Mbeya
Dar Es Salam
main production area
Chipata Salima
efficient lake services allow marketing
Chipoka
Salima
Chipata
Bangula
8/6/2010
Nacala
Bay
Bangula
Moatize Luzaka
Monkey
Chipoka
Nacala
Moatize
Tete
Luzaka
Chinde
Route for Cassava and sweet potatoe Beira
27
Lower Shire
Tete
Chinde
Beira
8/6/2010
28
IM P O R T S S T A TIS TI C S
About Fertilizers
P R O D U C T : F E R T I L I ZE R S S P E C IA L C O N D IT IO N S : N O N E
L O C A L P R IC E
$
50 k g b a g
IN T ER N A T I O N A L P A R T
IN TE R N A TIO N A L P R IC E
P A C K IN G M O D E
$
B A G S or C O N T A IN E R S
50 k il o g ra m b a g s
• • •
Importation of 369,000 tons of fertilizers in 2008, Essential to the development of Malawi’ s agricultural sector Most of fertilizer is imported as a finished product but some importers have blending plants Process and logistics Farmers World
Liwonde
Optichem (production side)
Blantyre
Yara
• •
Blending company
Regional depots
–
8/6/2010
M ODE
C O R R ID O R
R o ad & S e a
B E IR A
C o n t a in e r is e d
D a r e s s a la a m
36 90 00 TO N S W E IG H T
Tra n s p o rte d b / b u lk
%
D E S T IN A T IO N
36 90 00 TO N S
E X P E C T E D I M P O R T S 20 20 O R IG I N
G R O U P IN G P T
T IM E (d a y s )
Tra n s it T im e
C O S T $ /T O N
$ /T /K m
F o b B e ira/ LL
S e a f re igh t
29 52 00 ,0 0
80 %
T o L i lo n g w e
I n d ia / C h in a
F O B B e ira- L L
35
U S $ 9 2 / t/ k m
U S $ 80 /t/k m
7 38 00 ,0 0
20 %
T o B la n t y re
U A E & S a u d i / A ra b ia
F O B B e ira- B t
35
U S $8 5/t/ k m
U S $6 5t/k m
FO B Dar - LL
30
U S $ 12 0/t /k m
U S $6 5t/k m
Distribution From Liwonde
Blantyre and Lilongwe
From Blantyre and Lilongwe Traders and agents are selling fertilizers to farmers
Imports from South Africa (Joburg), through Beira, Dar Es Salaam (Farmers World) Improvements to reduce the cost of imports for the farmers : –
R EC E N T IM P O R TS
N A T IO N A L P A R T
P A C K IN G M O D E :
R EC E N T C O N S U M P T IO N
Buy fertilizers in bulk ...with bulk handling on railway as it is cheaper and bagging in Malawi is not expensive but time consuming Obtain a more balanced flow of goods (buffer stock in advance of the season and planning fertilizer subsidy program in advance to get better prices.
29
M ODE
R O U TE S
8/6/2010
BA GS
TO N S W E IG H T
%
E X P E C T E D C O N S U M P T I O N 2 02 0 O R IG I N
D E S T IN A T IO N
G R O U P IN G P T
T IM E (d a y s )
TO N S C O S T $ /T O N
$ /T /K m
30
Dar Es Salam
Imports of Fertilizers in 2009 Possibilities in the future (1) and (2)
Dar Es Salam Mbeya
73 800 tons (20%)
Mbeya
Mtwara
Mtwara necessary power from coal
Kanona Kanona Chipata
Chipata
Nacala Moatize
Luzaka
1
Tete
Salima Chipoka
Tete
Chiwawa
Bangula
Nsanje Port
Nsanje Port
Harare
Harare
Conditions 295200 tons (80%)
Nacala
Moatize
Luzaka
2 Chinde
Chinde
(1) Rehabilitation of the Nacala Corridor and links to Lilongwe
Beira
Beira (2) Barges on the Shire Zambezi river
8/6/2010
Joburg
Durban
31
Joburg Durban Route for Heavy Sands inputs and outputs
8/6/2010
32
The ceme nt production process
About Clinker • • • •
1) Limestone is taken from a quarry. It is the major ingredient needed for making cement. Smaller quantities of sand and clay are also needed. Limestone, sand and clay contain the four essential elements required to make cement. The four essential elements are calcium, s ilicon, aluminum and iron.
Portland previously mined limestone and manufactured Clinker at Changulume ; this clinker was ultimately transported by rail to a Cement factory in Blantyre (coal necessary) In 2009, importation of 202,000 tons from India/China through Beira (40%) and Nacala (60%) In the years to come, imports (Lafarge) from Zambia (50%) and Zimbabwe (50%) Cement industry highly dependant on the transport sector
2) Boulder-size limestone rocks are transported from the quarry to the cement plant and fed into a crusher which crushes the boulders into marble-size pieces.
How to produce Clinker
3) The limestone pieces then go thr ough a blender where they are added to the other raw materials in the right proportion.
Opportunities for Malawi • •
4) The raw materials are ground to a powder. This is sometimes done w ith rollers that crush the materials against a rotating platform.
Reducing the cost of imports including transport cost by producing cement (limestone + coal => Clinker main raw material for Cement) Develop an efficient North-South transportation system for heavy products, including Lake intermodal facilities and efficient railway
5) Everything then goes into a huge, extreme ly hot, rotating furnace to undergo a process called "sintering". Sintering means: to cause to become a coherent mass by heating without me lting. In other words, the raw materials become sort of partia lly molten. The raw materials reach about 2700° F (1480°C) ins ide the furnace. This causes chemical and physical changes to the raw materials and they come out of the furnace as large, glassy, hot cinders called "clinker".
8/6/2010
33
6) The clinker is cooled and ground into a fine gray powder. A small amount of gypsum is also added during the final gr inding. It is now the finished product - Portland cement. The cement is then stored in silos (large holding tanks) where it awaits distribution. The cement is usually shipped in bulk in purpose-made trucks, by rail or even by barge or ship. Some is bagged for those who want small quantities.
8/6/2010
34
Substitution of Sulfur Mochuchuma-Katewaka Coal Field N
About Mining
Keyelekera Uranium Mine Kanyika mobdium uranium mine
• Mining in Malawi (Uranium, Rare Earth, Heavy Sands, Bauxite) • Coal of Tete Region (Moatize Mine with Vale, Riverdale Mine) • Copper from Zambia
Mzuzu
Global Scheme
Sugar Salima and Chipoka Heavy minerals
Kasungu Limestone
Makanjira Ti N
Lilongwe
Coal from Moatize to Nacala m 70 k
Ni
Chimwazulu Mine Lake Chiwa
Kangankunde Hill monazite
120 km Electricity and coal
8/6/2010
35
Al Sugar
8/6/2010 Alumine to Cabora Basso
Mulanje 52 km
Nsanje Port (Molasses, fertilizers)
36
PRODUCT : URANIUM
Expected Uranium exports in 2020
SPECIAL CONDITIONS : SUBJECT TO INFECTION
LOCAL PRICE
$
INTERNATIONAL PRICE
NATIONAL PART
RECENT PRODUCTION M ODE
ROUTES
Road
Kayelek era
PACKING MODE :
CONTAINERISED (In Drums of 333kg's each) EXPECTED PRODUCTION 2020
10000/ yr
ORIGIN
DESTINATION GROUPING PT TIM E (days)
COST $/TON $/T/Km
500 TONS WEIGHT
%
in Karonga
10,000 t/year
TONS
Kayelkera
Kayelekera In Karonga
Mtwara
Karonga
Kanona
0%
M ODE
CORRIDOR
PACKING MODE
CONTAINERS
500 TONS WEIGHT
Walvis Bay in
Chipata
(In Drums of 333kg's each) EXPECTED EXPORTS 2020
%
ORIGIN
100% Kayelek era
NAMIBIA
10000/ yr
DESTINATION GROUPING PT TIM E (days)
Transit time Road
Mbeya
Nothern Rgn
INTERNATIONAL PART
RECENT EXPORTS
Dar Es Salam
By trucks to Walwis Bay (Containerised in drums of 333 kg’s each)
$
100% CANADA
Nacala
TONS
Moatize Tete
Luzaka
COST $/TON
Road freight to port Sea freight
50
US$1179/TON
Chiwawa
US$107
Nsanje Port
Karonga
Harare Chinde
Beira NOTES:
The discovery of Uranium at Kayelekera in Karonga, the Nothern part of Malawi, is a massive breakthrough in the economy of Malawi. The country is already earning over 300 million kwacha in loyalties. There is a lucrative market in Canada and the mine has got a life of aver 15 years. Paladin Africa have already exported 27x20' containers since the commissioning of the mine. More uranium has been discovered at Kanyika and Globe Metals are on Bankable Feasibility study stage and mining is expected to 8/6/2010 37 commence in 2012/13 season.
Mbeya
Dar Es Salam
Durban
Joburg
8/6/2010
38
Dar Es Salam
Expected Coal exports from Moatize mine in 2020
Mbeya
Moatize’s 2,440 million tonnes of estimated reserves Phase 1 : 2011-2015 . 12.7 million tonnes (mt) annually of hard coking coal for export; . 2.4mt/year of export thermal coal, . 2.5mt/year of thermal coal to supply a local power station should one be built. “We estimate the rehabilitated line will be able to transport between 6mt and 8mt of coal annually which is clearly not enough for our requirements and there are other potential coal producers in Kanona the Moatize region”.
Mtwara
Phase 2 : after 2015 . 21 million tonnes per annum, run-of-mine, whichChipata implies a 1,500 MW mine-mouth power plant
Chipata Salima
Riversdale expects to produce 20-million tons of Moatize coking coal from Mozambique by: 32016. 2015 up to 6 million tons
Luzaka
Chipoka
Nacala
Tete Chiwawa
Nacala
20 millions export capacity
Nsanje Port
Harare
chemicals 2015 :6 to 8 million tons
Bangula
Chinde
Beira
coal
Moatize Luzaka
Tete
Chinde
aluminum Beira 39 Route for Aluminium Ore inputs and outputs
8/6/2010
Expected Copper exports from Copper Belt in 2020
Dar Es Salam
Joburg
8/6/2010
Possibility : barging the coal 400km down the Zambezi from Tete to the coast, from where it would be barged out to sea and loaded on to vessels anchored offshore.
40
127, 000 t Cement 80,000 t Lime 28,000 t Fuel General Cargo
Mbeya
Actual traffic on corridors
Mbeya
(From Gopa Study) As basis for the Railway Master Plan, only safeguarded traffic potentials have been considered, in other words amounts of traffic that customers intend to transport. Accordingly, traffic on the Nacala Corridor will amount to 524,000 tonnes equivalent to 409 m tonnekilometres per annum. With the start-up of the extension to Chipata (Zambia) in 2012, these figures are expected to increase to 962,000 tonnes and 890 m tonne-kilometres, and further to 1.45 m tonnes and 1,445 m tonne-kilometres in 2016. Mtwara
Kanona
Durban
Dar Es Salam
Tobacco, 100,000 t Rice, Sugar, Tea, Beans and Metals
Chilumba
Mtwara
Chipata Chipata
Salima Lilongwe Chipoka
Nacala Moatize Tete
Luzaka
Liwonde Chiwawa
59,600 t Fertizers 9,6000 t Fuel
Nacala
140,000 t Sugar 15,000 t Food Crops
Nsanje Port
Blantyre
Harare Chinde
Moatize
Beira
Bangula
Tete
Chinde
Luzaka 89,400 t Fertizers 153,000 Fuel
8/6/2010
Joburg
Durban 41
8/6/2010
Durban 91,000 t exports
162,000 t tobacco 36,000 t Tea 11,000 t Cotton 126,000 t Sugar
Beira
42
IMMEDIATE NEEDS
Tea
Tobacco
Cotton
Sugar
Quantities 2009
52.56
232.63
27.56
280.00
295.33
Existing mode
Road
Road
Road
Road or Rail
Road+rail
Durban
Beira
Durban + Beira
Beira or Nacala
Tazara
Quantities 2009 Existing mode
Existing corridor Priorities for Transport Improvement and Investment
Quantities 2009 Existing mode Priorities for Transport Improvement and Investment
8/6/2010
Petrol
Paraffin
Diesel & other
General Petroleum
Fertilizer
107.80
14.80
157.40
280.00
141.61
2.00
Road
Road
Road
Road
Road
Train
Nuts
Existing corridor Priorities for Transport Improvement and Investment
Beira
Imported Coal
Tazara
Beira
Beira
Beira
Beira
77km in Mozambique
Ro-Ro service on the lake
lake Ro-Ro service on the lake
warehousing
lake service
Link with Moatize
rail link Limbe Chipoka- Lilongwe –Chipata
rail link Limbe ChipokaLilongwe Chipata
rail link Limbe ChipokaLilongwe Chipata
efficient rail services
efficient rail services
Services on the lake
Pig Iron
Alumina
Tete Bridge
efficient rail services
Chiromo Bridge
Chiromo Bridge
Lake service in Nkhata Bay
Border crossing
rail link Limbe - Lilongwe
Tete Bridge
Dwanga road to lake
MCC equipment in M'Beya
Border Crossing
Dwanga port + lake service
Border Crossing
Cassava
Potatoes
Sweet Potatoes
Maize
Rice
3913.00
758.00
2714.00
3201.68
106.11
383.00
None
none
none
road
road
Road+rail
Quantities 2009
38.00
21.00
0.00
0.00
0.00
0.00
Existing mode
Road
Road + train
Road
none
none
none
Tazara
western
Western and TAZARA
lake service
Tete bridge
Lake service Nkhata Bay rail link Limbe ChipokaLilongwe – Chipata Equipments to produce flour
Ro-Ro service
RoRo service
Pulses Lime
Cheaper road transport
Lake service Nkhata Bay
warehousing
Lake service
MCC equipment
rail link Limbe - ChipokaLilongwe Chipata
rail link Limbe ChipokaLilongwe Chipata
efficient rail services
efficient rail services
Ro-Ro service on the lake
Existing corridor
Priorities for Transport Improvement and Investment
43
Clinker
8/6/2010
Uranium
MCC equipment
Titanium ore
none
none
none
Energy
Energy
Rail link to Moatize
44