10/9/2020 Nacala Railway Line

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Programme for Infrastructure Development in Africa

Nacala Railway Line

Sector: Transport | Sub sector: Railway | Type: Upgrade | Status: Active

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

Location Map

Map data ©2020 AfriGIS (Pty) Ltd, Google

PIDA Programme

Beira-Nacala Multimodal Transport Corridors

Latest Actual Stage

S4B: Construction (2013)

Project Location

Mozambique

Coordinating Countries

Mozambique

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Bene ciary Countries

Mozambique

Project Dimension

Design Capacity

Goods Throughput: 18 mtpa

Length: 685 km

Project 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 bene ts to the larger community in terms of
job creation, improved mobility (passenger train services) and the economic development of the region.

Project Objectives and Bene ts

Implementation of a cost-e ective logistics solution for coal exports.

Project Risks

Environmental Risks: Not Reported Social Risks: Not Reported Socio-Enviro Classi cation: Not Reported
Other External Risks: Not Reported

Project Stakeholders

Mozambique - Caminhos de Ferro de Moçambique (CFM) - Lead National Agency

Mozambique - Ministério dos Transportes e Comunicações (MTC) - National Coordination

Southern African Development Community (SADC) - Regional Coordinator

VALE (VALE) - Private Sector Partner

Rio Tinto (Rio Tinto) - Private Sector Partner

Beacon Hill Resources (Beacon Hill) - Private Sector Partner

Project Economics

Net Present Value:

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10/9/2020 Nacala Railway Line

Cost Bene t Ratio:

Financial Internal Rate of Return (FIRR):

Economic Internal Rate of Return (EIRR):

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

Preparation CAPEX

Cost: Cost: 3500.00 million USD

Cost Secured: Cost Secured: 3500.00 million USD

Financing Type: Financing Type:

Financiers: Financiers:

Operation and Maintenance

Overall Cost:

Annual Cost:

Comments on Finance

Project Planning and Progress

Planned and Actual Stages 

Planned Acuta
Operation: S4C

Construction: S4B

Tendering: S4A
ega tS tce jorP

Transaction Support & Financial Close: S3B

Project Structuring: S3A

Feasibility: S2B

Pre-feasibility: S2A

Project Definition: S1

Enabling Environment and Needs Assessment: S0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Year

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Comments on Progress

Progress Indicators

Data not available

Project Documents

Data not available

Project Featured in

1. COMESA PIP 2010

2. PIDA PAP 1
3. SADC RIDMP 2012
4. TRIPDA 2013

Associated Projects

Project Contacts

Name Organization E-mail

Mr. Ahid Maeresera Southern African Development Community ahidm@nepad.org

Last Updated: 20 June 2019

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