Mozambique Coal Logistics: Vale’s exit from Sena line contributes to CFM US$45M annual loss

Vale coal trains17651776The removal of Vale company freight from the Sena rail line will result in the loss of half of the cargo currently carried on the route, with an economic impact of US$45 million on the annual revenue of Ports and Railways of Mozambique ( CFM), AIM writes.

At the beginning of December, Vale, Moatize coal mine concessionaire in the central province of Tete, announced that it would no longer use the Sena line and the central port of Beira to export coal, and from this year would concentrate all operations on the Nacala logistics corridor.

The company intends to increase its 12 million tonnes of coal volumes from last year to around 17 or 18 million tonnes this year, volumes which, according to the company, can be very well accommodated in the Nacala logistics corridor.

The Sena line and the port of Beira coal terminal have a capacity for 20 million tons a year, but the port access channel can only accommodate ships of up to 40,000 tons.

Also in the centre of the country, Augusto Abudo, executive director of the CFM said that the Machipanda line rehabilitation project had so far got as far as analysing the awarding of the financing of the works, within the framework of a tender launched for this purpose.

The capacity of the Machipanda line is 1.5  million tons a year, but, due to the economic situation in Zimbabwe, volumes currently transported have been in the order of 200,000 tons.

CFM expects to transport a grand total of 400,000 tons of freight  this year. Source: O País

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