Nacala Railway Line

*** DISCLAIMER: Project information is incomplete. It will be updated regularly as revisions become available. ***Modernisation of Nacala and Beira Rail Systems (Mozambique).

DESCRIPTION

The Nacala Railway Corridor Project will transport approximately 18 million tons of coal, derived from the expansion of Moatize Mine (Mozambique) through a railway system connecting the existing mine in Moatize to a new coal terminal in Nacala Velha (Mozambique). The project was funded by Vale, and has the potential of being developed into a transport corridor for Mozambique's Tete Province, and potentially Zambia and the Democratic Republic of Congo (DRC). The railway line is located in the north-western region of Mozambique, starting at Moatize in the Tete Province, going through Malawi and connecting to the existing railway network at Nkaya Junction. From here the route follows the exisitng alignment through Entre Lagos, Cuamba and Nampula. Finally, in the region of Monapo, the railway follows a new route up to the new coal terminal at Nacala Velha. Aurecon previously developed FEL 1, 2 and 3 (Front End Loading) studies for the development of the corridor. The Detail Design (FEL4), included the design of the entire railway line and its associated infrastructure from the mine loadout station to the car dumper at the proposed new port terminal at Nacala Velha. The railway line is designed for a 20.5t axle load. Apart from providing an export conduit for the client, the rail corridor will have direct- and indirect social benefits to the larger community in terms of job creation, improved mobility (passenger train services) and the economic development of the region.

OBJECTIVES AND RATIONALE

PROJECT RISKS

Environmental Risks: Not Reported Social Risks: Not Reported Socio-Enviro Classification: Not Reported Other External Risks: Not Reported

PROJECT ECONOMICS

• NET PRESENT VALUE: 0.00

• COST BENEFIT RATIO: 0.00

• FINANCIAL INTERNAL RATE OF RETURN (FIRR): 0.00

• ECONOMIC INTERNAL RATE OF RETURN (EIRR): 0.00

• COMMENTS ON ECONOMICS: CFM (the Mozambique state railway company), Vale, Rio Tinto and Beacon Hill are spending US$ 4.4 billion to build a railway line to and coal export terminal at Nacala. $1-1.5b terminal & $3.5b rail.

PROJECT FINANCING

OPERATION AND MAINTENANCE

OVERALL COST: 0.00

ANNUAL COST: 0.00

COMMENTS ON FINANCE:

STUDIES

PROJECT STAKEHOLDERS

Regional Coordinator

Southern African Development Community

Lead National Agency

Mozambique - Caminhos de Ferro de Moçambique

Private Sector Partner

VALE

Private Sector Partner

Rio Tinto

Private Sector Partner

Beacon Hill Resources

National Coordination

Mozambique - Ministério dos Transportes e Comunicações

CONTACTS

Infrastructure Expert (NEPAD) Mr. Ahid Maeresera -ahidm@nepad.org

CONTRIBUTION TO 2030 AGENDA