MOZAMBIQUE
Feature by Liesl Venter
Positive signs of increased economic activity
A
fter multiple consecutive
shocks – including a
pandemic, an insurgency
and a recession – the
economy of Mozambique is
recovering and things are looking
up, although there is still some
uncertainty.
According to Duncan Bonnett, a
partner at research and consulting
company Africa House, while
there are always some caveats, ifs
and buts when it comes to most
African countries, Mozambique is
working hard to address some of the
fundamental challenges it faces.
“Economic growth is expected to
be about 5% this year, which points
to a positive recovery. If at least one
of the big gas projects in the north
of the country picks up next year,
we will see potentially much higher
growth rates – even as much as 10%
or more within three years,” he told
Freight News.
Bonnett said there was a lot of
focus on the three major gas projects
in the north of the country, but these
were by far not the only ongoing
developments. “We have seen a
range of projects being announced
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or updated in the past two years, progress. We are also seeing activity station,” said Bonnett.
indicating activity is on the increase. across the country – another positive He added that with Eni set to start
In Maputo alone, the projects under development.” flowing gas from its LNG plant by
way and proposed are valued at He said gas would remain an the fourth quarter of this year, and
about $3.5 billion.” important part of the conversation indications that Total would return
He said other projects across the when it came to Mozambique, and to the site early next year, there was
country included several highway rightly so. French energy giant Total no reason Mozambique would not
upgrades and new road development; suspended its gas project in northern become one of the world’s top-tier
“
investment in power transition; Mozambique last year after an armed gas producers.
new dams being insurgency by “It is also not only gas,” said
erected along militants linked Bonnett. “We are seeing increasing
with renewable to the Islamic investment in the graphite projects
energy plants State group. around Pemba that could see the
such as solar and While operations country emerge as one of the biggest
hydro; and railway In Maputo alone, are still on hold, graphite producers in the world.”
upgrades. the projects the project will According to Jan de Vries,
“There are also under way and officially be the executive managing director at
food resilience proposed are valued at biggest in African Cornelder de Moçambique, the
programmes, history if work business environment is seeing
cement plants and
about $3.5 billion. resumes. continuous improvement and
post-cyclone water – Duncan Bonnett “The combined increased effort by the government to
system repair investment in work with the private sector.
programmes Mozambique’s “There is good dialogue between
taking place, to name a few.” three big liquefied natural gas business and government. Efforts to
Bonnett said the return to (LNG) projects – Total, Eni’s Coral improve the ease of doing business
Mozambique of key donors – such as South and Chevron’s Rovuma continue, and while it might not
the International Monetary Fund, Basin – should they go to phase always happen as quickly as the
World Bank and USAID – this 2, would be more than $100bn. private sector would like, we are
year was another indication that Theoretically, this would make it seeing change. There is a willing ear
recovery was under way. “It is a very the largest investment in the world, from the government side, and that is
hopeful development that points to outside of the international space very positive.”
1921 Ignazio Messina & C. THE ITALIAN LINE
SHIPPING AGENCY
1994 Ignazio Messina & C. Pty Ltd IN SOUTH AFRICA
October 2022 Mozambique 1
Mozambique
Port of Beira’s remarkable
technological advances
C
ornelder de Mozambique
is investing heavily in
operations to meet the
growing demand for
containerised, bulk and breakbulk
shipments at the Port of Beira.
According to executive managing
director Jan de Vries, for bulk this
includes upgrading the warehouses
and equipment.
“We have a diverse range of
imports and traders that use the
Port of Beira, and our goal is to
ensure our operations meet the
needs of all our clients,” he said.
The warehouses are made
cyclone-proof, and with conveyor
systems for loading out cargo more
efficiently. After completion of the
conversion of existing warehouses,
more warehouses will be built that
are linked to the quayside using
conveyors.
“We are also developing big
bagging machines that will replace
the manual bagging operation in
use today for big bags.”
De Vries said the bagging
machines could bag sulphur very
quickly into the types of bags used
in regional trade, even straight onto
the quay. “By combining bulk and
bagging operations it will allow us
to handle these commodities far
more efficiently – increasing our
loading times significantly,” he told
Freight News.
First in Africa to use
automatic hooks
On the breakbulk side, Cornelder is
aiming for greater productivity and
better safety through application
of technology. Besides a number
of new forklifts, Cornelder is the
first company in Africa to use
automatic hooks. Together with new
configurable spreaders, these hooks
increase the handling speed of big
bags as release of bag slings is done
fully automatically and remotely.
Besides using this setup on vessel
operations, it is also used in-house
where the company has developed
a spreader that can be attached to a
reach stacker, allowing it to lift 12
bags at once with automatic hooks.
This delivers the ability to very
quickly stack bags in warehouses
and load trucks in record time.
“With a successful trial completed,
we have already placed the order for
more units,”
said De Vries. “Investment in
information technology is ongoing.
2 Mozambique October 2022
It introduces efficiency into our
operations. Digitalisation of the
general cargo terminal is happening
as we speak. At present we are
running the new General Cargo
Terminal Operational System
parallel to the old paper-based
system until all the teething
problems have been addressed.
Plans are to fully rely on the new
system by the end of the year.”
On the new system, all the
port operations from the gate to
the weighbridges to the vessel will
be controlled and handled via this
online system. This, says De Vries,
will significantly improve visibility
and control while also upping
efficiency.
Digital workflows developed
in-house
He said many of the solutions
introduced to the port to address
the outbreak of the global
Covid pandemic had resulted in
The use of automatic hooks has allowed Cornelder to increase the handling
technological advances. “We were, speed of big bags.
for a long time, aiming to digitalise
more administrative workflows, with our Navis terminal operating integration early next year once we
but the Covid pandemic forced our system to take it a step further and have fully tested it all.
hand to switch fully and in record control the flow of containers from
time. Not being able to bring in outer regions to the port. Truck Investments under way at
external consultants, we decided to appointments and cargo booking container terminal
develop our own digital workflows will be done through the platform On the container terminal,
in-house. Our IT department was so Navis is automatically updated. investments are also under way.
reinforced and we realised we This new module is now in its pilot The yard is being expanded and
had great development potential. phase and will roll out to full usage work is about to start on existing
before the end of the year.” gate expansion. The investment
“
Instead of basic digital workflows,
our team The next step, into a truck positioning system that
developed a full- said De Vries, indicates to trucks exactly where to
fledged online was integrating stop for loading from the cranes has
customer portal gate operations proven a great success.
that completely into this system. “Instead of an operator indicating
eliminates the A truck positioning “We currently by hand, often resulting in trucks
need for coming system detects have an in-house- having to move back and forth, the
to our offices for developed hand- system detects by radar and laser the
administrative by radar and held application exact position for the truck to park
matters; all laser the exact that, through and signals it to the driver. This has
documentation position for the truck to park OCR/artificial seen the terminal crane productivity
and invoicing and signals it to the driver. intelligence, improve by 15%,” said De Vries.
can be done recognises Cornelder was also renewing the
online.” – Jan de Vries driver, truck container terminal handling fleet
The new and containers. and had received 20 new terminal
system has been This application trucks and six new reach stackers –
well received by the industry to not will be integrated into the customer as well as a range of other equipment
only solve Covid-related issues, but portal platform so that from the in the last 12 months.
also increase efficiency of processes moment the truck intends to visit “Adding more equipment to our
for clients. the port to the moment it departs, operation speaks directly to our
He said the system had been we can safely and efficiently validate efficiency. This year we recorded a
thoroughly tested by cybersecurity truck, drivers and containers at all new record for a vessel, doing over
companies and was found checkpoints without drivers having to 1 150 container moves in a 12-hour
exceptionally safe – and therefore leave their trucks. The port will see a shift.”
the platform was used as a major boost in safety and efficiency. De Vries said the quays were also
foundation for future development. Most of the components are already being renovated gradually as part of
“We are now linking this system in place but we hope to see final the ongoing upgrade programme.
Forwarders advocate for
single-window customs service
T
he lack of connectivity between
intergovernmental departments
is taking its toll on the efficient
movement of cargo in and out of
Mozambique – and adding to costs.
According to Desiderio Fernandes,
representative of the Association of
Shipping and Freight Forwarding
Agents and Port Operators of
Mozambique (Asantrop), this is not
an issue exclusive to Mozambique
but one that needs to be addressed
– particularly in the current global
economic environment.
“The cost of logistics is high in
Africa. Being cost competitive is
important and we need to do more
to keep rates and tariffs down,” he
told Freight News. “In Mozambique,
the lack of interconnectivity between
departments not only leads to the
introduction of ratings and tariffs
that tend to make the transit corridor
expensive and uncompetitive, but it
also creates a lot of bureaucracy and
affects the ease of doing business.”
As the voice for freight forwarders
In Partnership with
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in the country, Asantrop has been submitted to customs through a the information also becomes a
actively advocating for a single- broker. “Legislation prohibits freight challenge.”
window customs service, with forwarders from submitting customs And while forwarders are legislated
realistic pricing. declarations directly to customs. to not submit documents directly
Fernandes, who is also the current Forwarders’ in-house customs to customs, the brokers have no
president of The Federation of brokers can only do clearance for controlling policy governing their
“
Clearing and Forwarding Associations cargo that you are nominated for. As action – and so more and more are
of Southern a forwarder you stepping into the transportation and
Africa (FCFASA), had to appoint logistics space.
says countries in a third-party “The customs broker is accredited
the region should customs broker,” by customs, while the freight
all be moving Legislation he said. This forwarder is licensed by the transport
actively to the only added to minister,” explains Fernandes. “There
single window prohibits freight the cost, making are real policy gaps at play here that
concept. forwarders from a corridor impact negatively on the forwarders,
“Corridors are submitting customs declarations such as the and companies are closing down as
expanding – but directly to customs. Beira Corridor they are struggling to operate in this
unless we ensure uncompetitive. environment.”
efficiency and – Desiderio Fernandes Small to He said Asantrop had engaged
competitiveness, medium (SME) with the government on the issue and
we are not going forwarders in was actively advocating for a policy
to attract the volumes as we would particular are struggling under this change. Customs is now looking at
like to and grow trade.” regime. “The challenges often feel amending the law so that it will not be
He says another ongoing challenge insurmountable for these smaller mandatory to use a licensed customs
for forwarders – which adds companies that have to hand all broker to frame a declaration.
delays and costs – is the fact that of their customer details over to However, this process is still in its
customs declarations can only be the broker. The confidentiality of infancy.
October 2022 Mozambique 3
Mozambique
Finding innovative solutions
to tricky challenges
M
ozambican operators
are upbeat, thanks to
growing volumes and
increased interest in
the country, says Andreas Kusza,
senior manager for Manica Freight
Services (MFS).
“The past season saw the return
of perishable cargo to the Port of
Maputo, and it has been a huge
success – despite initial scepticism
from many in the industry,” he told
Freight News. “We are an agent for
global shipping lines that have slots
on its Unifeeder service connecting
Jebel Ali and Mundra/India with
Maputo. The citrus exports went
very well, and we believe that
volumes will grow going forward.”
He said it was not only the return
of citrus that had contributed to the
positive outlook, but the fact that it
was a mix of cargo that was flowing.
“Cargo destined for the hinterland
continues to come in through
Maputo. We have seen increased
volume from India and Mideast, and
it makes sense to use the Maputo
services as it shortens the transit
time by at least a week or two.
E-seal more of a hassle than a help
A small electronic seal is causing
major headaches for transporters
and forwarders in Mozambique.
Coming in at a cost of $57 per
seal, it is not a cheap headache.
Freight News spoke to several
transporters in Mozambique
and found that the challenge
was not only the cost, but also
the availability and the delays
this caused.
The e-seal, as it is referred
to, is government’s way of
FN4776SD
4 Mozambique October 2022
There are block trains moving from for the logistics sector. from Tanzania to the Cahora Bassa
Maputo to Harare in Zimbabwe. A consortium has announced basin on the Zimbabwe side where
These are interesting developments plans to start drilling in a new two wells are set to be drilled. “We
that bode well for Mozambican area near Angoche – and by the brought the rig into the site through
logistics.” sounds of it, there are positive the Port of Quelimane. There were
He said MFS was involved in developments. Electricidade de a few challenges to the project but it
a variety of projects at present, Moçambique (EDM), Mozambique's just proves once again that operators
“
including the oil and gas industry state-owned national power utility, in Mozambique can handle the oil
in the north of has announced and gas projects and are able to
the country. With refurbishment come up with innovative solutions to
the major LNG and upgrade any challenge that comes their way.”
project in Afungi programmes for According to Kusza, interest
still on hold after their existing was not only in Mozambique but
the oil company MFS is involved in a variety infrastructure in several of its neighbouring countries.
declared force of projects at present, the country, while “Malawi and Zambia are countries
majeure last including the oil and gas several new power where we are seeing several projects
year, he said the industry in the north of the plants are on the developing and where we are
contracts had not country. cards. currently involved. It is not an easy
been cancelled. “In many of operating environment but again,
“We had plans – Andreas Kusza these projects the we are managing to find innovative
to mobilise in logistics service solutions to tricky challenges.”
Afungi, but set providers have He said it was, however, important
up the team in Pemba and have not been named and some of the for companies to avoid having
managed to get involved with other projects are still in the pipeline. all their eggs in one basket – and
gas projects in the area doing marine It does, however, speak to the diversification was the name of the
services, forwarding and clearing.” opportunity that exists and shows game at present. “We don’t just focus
He said the growing oil and gas that investment in the country is on on our forwarding and clearing
business in Mozambique, despite the the rise.” business but also on the ships
situation that unfolded in the north He said MFS had recently agency, warehousing and the marine
last year, remained an opportunity completed the move of a drill rig side of the business.”
safeguarding cargo. loose product,” a transporter “The e-seal has to be cut at every
“The problem is that while told Freight News. border post for cargo clearing
“
this is a great idea “If you get into the and then the container has to be
for high-risk cargo container and steal resealed. It takes anything from
such as electronic a couple of handfuls 45 minutes to an hour to reseal a
equipment and of copper, what are truck,” said another transporter.
mobile phones, which you going to do with “The e-seal is also allocated
people may very well It is not an easy or it? You can’t sell it to to your documents. It is not
try to import without a quick process. anyone locally.” an easy or a quick process as it
paying duties, the The e-seal, if cut is very specific and it happens
same cannot be or tampered with, in every country between here
said for other commodities like immediately sends off an alarm, and the Democratic Republic of
copper cathodes or any bulk raising awareness of the intrusion. the Congo.”
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Mozambique
New facility enhances reefer capability
M
SC Mozambique has Del Vecchio said the other are positive about the outlook are also expected to increase.”
invested in a 45 000sqm would be developed and believe that we are going On the subject of bringing
10 000-square- at a later stage as and when to see more perishables on this bigger vessels to Mozambique,
metre warehouse capacity was required. corridor.” Del Vecchio said it would depend

in Beira as it creates capacity for
transit cargo to the hinterland.
According to Nicola del
Vecchio, MSC Mozambique
managing director, the facility
has been equipped with state-of-
the-art equipment and has been
fitted with 50 reefer plugs. It
is also set up for cross-stuffing
of reefers and has backup
generators in place should power
ever become a problem.
“This improves our capacity
to run reefers through Beira to
Zimbabwe, Zambia and Malawi,”
he said.
The warehouse is part of
a larger development of
100 000sqm. “At the moment we
have only developed 55 000sqm.
This includes a 4000-TEU depot,
yard and warehouse. It is able to
do container upgrades, washing
and repairs. A weighbridge has
also been fitted on site.”
“
He added that the company At present, MSC has two on the investment into ports.
had seen steady vessels calling Beira, for instance, was capped
growth over the Port of at 12.5m draught, and the size of
the years in the Maputo per vessels it could handle was the
Mozambican month, between case in Maputo.
market and was four and six in “Around the world, the trend is
upbeat about Ports in Mozambique – and Beira, and two to run bigger vessels with more
the future. “In the rest of the world – will vessels calling capacity and fewer calls rather
Mozambique, need to adapt to the trend Nacala. than smaller vessels calling
however, the “The more often. Ports, not only in
of running bigger vessels
vertical logistics transformation Mozambique but everywhere,
chains have been with more capacity and of the port in are going to have to adapt to this
missing, and fewer calls. Nacala is almost new environment.”
improving this is – Nicola del Vecchio finished. These He said ongoing investment
necessary as we developments into equipment was just as
move forward.” have been important. “Our commitment
There had been an overall drop welcomed by the industry,” he to Mozambique remains firm
in import volumes in general and said. and we will continue to invest in
the country had been hard hit by The refurbishments include a our operations. We are not just
the container shortage issue, he 400-metre quay for container focused on bringing in vessels
pointed out. vessels. “We expect to see that are here today and gone
“Our main focus at the growth in Nacala due to the tomorrow, but also creating
moment remains on Beira and ongoing project development in landside infrastructure to boost
creating the necessary capacity that region, while Malawi and our operations and grow our
to service the hinterland. We Zambia volumes through Beira volumes.”

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6 Mozambique October 2022

Infrastructure upgrades further
road-to-rail ambitions
C
aminhos de Ferro de
Moçambique (CFM),
the government-owned
railway company of Mozambique,
is upgrading 42 kilometres of the
Ressano Garcia railway line to the
tune of $66 million – while another
$200m is set to be invested in the
upgrade of the Machipanda line.
According to Adélio Dias, CFM
director of communication, this is
in line with ongoing upgrades and
investment aimed at increasing trade
with South Africa and decreasing
the number of trucks using the road
through the Lebombo Border – as
well as improving the rail transit
between Mozambique and Zimbabwe.
He said it was all part of a
bigger road-to-rail strategy in the
country. “The aim is to maximise
the utilisation of the railway line.
Ensuring our infrastructure can
handle more volumes is critical.
“The Machipanda line
rehabilitation is a big project and it
FN4772SD
will be a state-of-the-art line once
concluded and commissioned,” he
said.
Other ongoing projects include
the rehabilitation of a bridge on the
Goba line and the construction of a
bridge near Salamanga. “This project
$66m
is an investment
of $6m,” said
Dias. “We
have recently
concluded the
construction
of two bypass
lines for the
Dugong cement
plant in Salamanga, an investment
of $3.5m, and the terminal upgrade
in Ressano Garcia, also $3.5m. We
have invested a further $4.9m in a
railway telecommunication system
for the Ressano Garcia line. This
system allows CFM improved control
of trains on the line.”
He said rehabilitation was an
ongoing process at CFM. “We tend to
focus on rehabilitation if and when
it makes financial sense,” he said. “In
terms of new lines, these are not off
the table. We have constructed a new
railway line between Mutarara and
Vila Nova.”
This $30m project saw a
completely
new railway
line of 46km
constructed
The cost of upgrading and improves
42 kilometres of the rail transit to
Ressano Garcia Malawi from
railway line. Mozambique.
According
to Dias, improving the interface in
the Maputo port area to provide
greater flexibility in the rotation of
rolling stock through the increase in
reception and dispatch lines for trains
is also a priority.
“The acquisition of rolling stock,
locomotives and wagons to meet the
growing demand is important, and
in this regard we continue to invest in
strengthening and maintaining the
infrastructure. We are also investing
in road signage systems and working
with customs to improve the customs
clearance system through the
integration of the rail management
system to the electronic single
window.”
He said this included an agreement
with Transnet Freight Rail (TFR) to
introduce a system where trains no
longer stop at the borders.
“The aim is to ensure efficiency
and reduce delays for cargo moving
between the two countries as much
as possible.”
He says an example of major gains
has been that of the Ressano Garcia
terminal which now has a capacity of
three MTPA. “This is a very innovative
project in the country, delivering a
combination road/rail solution aimed
at reducing operational costs and the
number of trucks in urban areas. We
estimate a reduction of transport costs
by as much as 16%.”
www.dsv.com
October 2022 Mozambique 7
Mozambique
Port of Maputo solving space constraints
T
he Port of Maputo has its sights
set on expansion.
According to Neusa Monjane
Saranga, commercial director for the
Maputo Port Development Company
(MPDC), they are currently on the
verge of closing negotiations with
CFM railway for a parcel of land,
adjacent to the port's fence, which
will give the port much-needed space.
“As a city port we have been heavily
constricted in our expansion plans,
but as volumes have grown it has
become imperative that we find a
solution,” said Saranga.
She added that negotiations with
CFM over an 18 000-square-metre
parcel of land were progressing well
and there were high hopes that they
would conclude soon and move the
process forward.
MPDC is further negotiating with
a third-party company for the use
of their land for the storage of cargo
destined for the port. “This land will
be used for a back-of-port operation
that will allow us to meet the growing
demand in the port.” Negotiations
about the feasibility of this project are
under way to ensure that this solution
Maputo proving to be the gateway of choice for SA exporters
South African mining houses
and agricultural producers are
looking increasingly to Maputo
as a viable option for exports,
especially in light of ongoing
woes with Transnet and growing
security risks.
According to Duncan Bonnett
of research and consulting firm
Africa House, it is a trend that’s
gaining traction. “Looking
at Transnet and the current
challenges it faces, we are seeing
more and more mining and
agriculture exporters looking
at Maputo as an option. There’s
the strong possibility that they
will increasingly reroute through
Mozambique.”
Dry Port in Walvis Bay
serving the entire SADC Region
Cargo Handling & Storage
Bonded Facilities
Freight Forwarding
Documentation
Dry, Perishable and
Project Cargo
FN9284
8 Mozambique October 2022
will be feasible for both the port and are working heavily on this. Once the the port the much-needed breathing
its customers. land is secured, we will be analysing space that would allow us to serve the
The Port of Maputo has been on an the logistics requirements as well increasing demand.”
investment drive for several years and as assessing the necessary road Saranga said investment at the port
is continuing to go from strength to interlinks to the port.” was ongoing. “We have refurbished
strength. Before the outbreak of According to Saranga, for a port four berths and our equipment has
Covid -19, it was handling 21 million constrained by a city, back-of-the- been upgraded. Two more mobile
tonnes of cargo across all sectors, a port operations are crucial. “It is all cranes are expected in May next year.
“
10% increase over the previous year. about efficiencies and innovation. This will allow us to operate more
“We have Improving our berths with harbour cranes.
continued to operational “Apart from the traditional
see year-on- efficiency remains commodities handled at the port,
year growth a top priority at the diversification strategy has been
at the port as
The pressure on other ports the port and we paying off, and we have added new
investments into are, due to our products into our portfolio such
our infrastructure in the region has benefited geographical as vanadium and vermiculite. We
have continued. us, and we are seeing location, having have also seen the return of the rock
The improved increased demand even from to be more phosphate volumes into the port.
capacity has led non-traditional customers. innovative in Additionally, an exciting development
to steady growth finding solutions.” this year has been the return of citrus
in volumes,” said – Neusa Monjane Saranga Saranga said exports through Maputo. Since the
Saranga. 2022 had been a beginning of the second quarter this
This, however, good year for the year we handled about 2 014 citrus
led to a higher demand for space. The port so far, with interest spiking. “The containers, and we intend to grow
area earmarked for a back-of-port pressure on other ports in the region that going forward,” said Saranga.
operation, containing approximately has benefited us to a certain extent, “There has also been interest from
12 hectares, is ideally situated only and we are seeing increased demand the macadamia industry. The
seven kilometres away, with easy even from non-traditional customers. potential to grow our exports is
access to and from the port. “The The back-of-port operation is a very there and the interest in the Port of
project is our focus at present, and we important development as it will give Maputo is growing.”
He said it was not just because gateway for South African been very impressed with the
of capacity – the security issues on exporters shipping to the Middle developments in Maputo. Both
“
the N3 were also a consideration. East and Southeast Asia. the Maputo Port Fruit Terminal
“No exporter And, with and DP World Maputo are seeing
wants to run a mix of new ongoing investment and have
the gauntlet of sailing options proven that they are more than
having their having been capable of handling citrus exports
product and introduced, with the return of the commodity
trucks destroyed Ongoing investment in the including a new to Mozambique this season.
or their drivers Mozambican ports and direct sailing “With role players having
harassed.” in the corridors to South service, there made serious investments and
Ongoing is no reason commitments aligned to exporting
investment in Africa is making the option for exporters citrus from Maputo, producers
the Mozambican more viable than ever. to move their in South Africa are encouraged
ports and in cargo along to consider this option to ensure
the corridors to cumbersome, future sustainability for exports
South Africa is making the option congested and unsafe corridors. given the mounting pressure on
more viable than ever, and Maputo According to the Citrus Growers the logistics chain,” said the CGA’s
is proving to be an excellent Association (CGA), members have Mitchell Brooke.
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1892 Founding of Manica in Beira
- Manica Trading Company
1898
Import of all kinds of goods
and se�ng up of commercial
rela�onships with shipping
agencies
1904
warehouses
1927
Agency for vast
1930
Infante de Sagres - Manica's
ini�al headquarters
1950
Increase in tea exports
through the ports of
Maputo
1958
warehouses - Munhava
1960s
Manica Trading opens
1991
Restructuring and
rehabilita�on of Casa
Infante de Sagres
2000
Management buy-out.
Now 100% Mozambican-owned.
2022
ADVERTORIAL
Manica Freight
Services S.A.
celebrates
130 YEARS
Manica Freight Services (Moc) S.A. marks its
milestone 130th anniversary this year and is
currently one of the oldest companies in the
ship and cargo agency business, opera�ng in
most parts of the country.
The history of Manica is directly linked to the
development of railways in the hinterland
and Mozambican ports. For over a century,
the company has established itself in various
regional hubs, opera�ng in the air cargo,
shipping, forwarding, insurance and mari�me
surveying sectors, bonded warehouses and
local cargo warehouses, car rental and
agencies.
It has gone through several mergers,
partnerships and integra�ons, giving rise to
the current Manica Freight Services (Moc) S.A.
The history of Manica Trading Company is
closely linked to the history of the city of
Beira, as it was there that the company was
born and evolved, and where it occupies one
of the most imposing historical buildings in
the city of Beira: the Casa infante de Sagres.
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Mozambique
Collaboration key to minimise delays
T
he Beira Corridor is set for
growth as volumes out of
the Democratic Republic of
the Congo (DRC) continue
to increase.
This was good news for logistics
companies servicing the corridor,
said Kevin Hutton, general manager
of Beira Logistics Terminals (BLT).
“Export cargo out of the DRC is
growing. Logistics companies are
under pressure to create capacity,
and investment into fleets and
warehousing is ongoing,” he told
Freight News.
“Also, looking at the statistics
for the Beira port, we can see
that volumes are growing year on
year. Our biggest challenge in the
logistics supply
chain is not
to be caught
on the back
foot.”
He said
often, when
volumes
Broken old bridges elicit higher costs due to circumvention
Moving heavy project cargo
through Mozambique remains
a problem – not because of road
infrastructure, but because of the
state of its bridges.
According to Philip Warren,
managing director of Africa
Route Clearance Consultants
and MGI Weighbridges, nearly
every bridge needs to be propped
up or bypassed. This drives up
the cost of moving abnormal
loads significantly.
“The road network
infrastructure is very well
developed in southern Africa and
we find that moving the cargo
in that regard is not as much of
10 Mozambique October 2022
were up capacity was down, with congestion that already exist at necessary project and oil and gas
border posts.
not enough transporters to service cargo north to south and vice
the corridor – as was currently the“Border posts like Machipanda versa due to flooding and lack of
between Zimbabwe and
case. The reverse, however, was also continuous maintenance.”
problematic as too much capacity Mozambique are simply too small The lead times for cargo moving
and not enough volume was not for the sheer volume of cargo we are on sections of this road had
cost-effective either. seeing coming out of the DRC,” he increased significantly and in
“When the global pandemic brokesaid. “It is a single-lane border post many cases loads were diverted via
and there is no physical space for
out we saw a major increase in the Zimbabwe.
number of transporters operating expansion. It is just gridlocked and Border post congestion has long
on the Beira Corridor and rates putting more infrastructure in will been a challenge in southern Africa.
were pushed down significantly. be difficult.” “It is not unheard of to wait several
This was one of the few corridors He said transporters were days at a congested border post with
conscious of these restrictions and
that continued to operate and there trucks released in batches,” said
made every effort to give agents
was a lot of interest,” he explained. Morris. “From our side, we have
“More recently we had major advance notice of arrival. “We do put in place numerous systems and
as many pre-alerts as possible in
capacity available on the corridor processes that give us a much clearer
as no stock was coming in and an effort to alleviate the pressure picture of where the bottlenecks are
trucks were standing. Now we haveon the border and to reduce any on the corridor and what to expect.”
the reverse – there is not enoughdelays.” Hutton said it was also essential
capacity to service the growing Hutton and Morris said it was to provide integrated solutions
volumes.” essential to have integrated systems between transport and warehousing
According to Chris Morris, in these times, with an emphasis in Mozambique. “With our different
general manager of Specialized on collaboration. “It is incredibly business units, and our presence in
important to plan and to ensure
Transport, even if more trucks could all the countries along the route, we
everyone is on board to keep the
be found it is not as simple as just have been able to streamline our
increasing the number of vehiclesinevitable delays to a minimum,” operations in and out of the DRC.”
said Morris.
on the corridor as this would only Morris agreed, saying with yards
“
exacerbate the bottlenecks and Another ongoing challenge and workshops also set up along
was the deterioration the route any challenges or issues
of infrastructure. In could easily be sorted out, allowing
Mozambique, the EN1 for an efficient flow of cargo.
linking the north and “No doubt there are challenges
south was one example of on our corridor, but the bigger
Border posts like Machipanda this. Over the past three picture is very positive. Volumes
between Zimbabwe and to four years this road are growing and demand is on the
Mozambique are simply too has deteriorated to a non- increase,” he said.
small for the sheer volume repairable state. “There “With mining on the increase
is an urgent requirement in Africa, and the world hungry
of cargo we are seeing
for a complete new road for minerals, we are very positive
coming out of the DRC. build,” said Morris. about the future and the growth
– Chris Morris “There are various of the Beira Corridor,” concluded
bridges not able to carry Hutton.
a problem. But when it comes to can be required several times. turbines. They are not only very
the bridges, we run into trouble – It becomes a very expensive cumbersome and large pieces,
“
especially in Mozambique.” undertaking.” but we are also talking about
He said many He said a lot of heavy loads for one
of the routes Mozambique’s project.”
had fatal flaws limitations He said in the case of
– meaning the affected its Mozambique, there were many
bridges were ability to handle bridges whose limitations
limited in the
Where we can prop up abnormal cargo. left transporters with little
weight or height bridges we do but often Many of the alternative but to bypass.
that could be we have to build bypasses. bridges were “We have the equipment and
carried. This – Philip Warren also old and the weighbridges, the expertise
often meant in dire need of and the knowledge to move
circumventing a rehabilitation. project cargo well, but we can’t
bridge completely. “This is especially the move the bridges, we can only
“Where we can prop we do case if we look at some of bypass them. It is expensive and
that, but often we have to build the components that we are adds significantly to the cost of
bypasses and one route that moving in now, such as wind any project.”
 Dry port ramping
up facilities
T
LG-Ressano’s minerals
transit terminal at the
Ressano Garcia Railways
exchange yard has proven to
be just what Mozambique needed.
Officially known as Terminal
Internacional Ferroviario de
Trânsito de Minérios de Ressano
Garcia (TIFTMRG), the efficiencies
introduced by this dry port have once
again placed the emphasis on the
importance of rail in the dry bulk
mineral sector.
The brainchild of TLG Mozambique
and CFM railways, it has been
handling up to two trains a day since
its inception a year ago – and is set to
ramp up operations with the capacity
of four trains a day in the near future.
According to Arnauld Stroebel,
TLG Mozambique terminal manager,
the facility has proved its value, and
with the Port of Maputo ramping
up its operations to handle more dry
bulk, the dry port is following suit.
“Interest in the facility has been
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Thanks to increased efficiency at the terminal, bulk volumes are on the rise.
Photo: TLG Mozambique Terminal
growing as it provides an alternative kept up to date – in addition to the immigration system set up for the
logistics road-to-rail transit solution truck drivers not having to exit their drivers, the truck turnaround time has
for minerals moving from South vehicles to complete customs and been shortened, which means more
Africa to Mozambique for export. immigration formalities – the entire loads per month per vehicle.
“
We are continuously investing in facility is geared towards efficiency. “Our facility is the first in southern
the terminal and Stroebel said the Africa where the driver does not
now have our own facility was handling have to get out of the cab to complete
dedicated shunter. several types of customs and immigration. The
This will see us minerals, including customs/immigration booth has been
improve the loading magnetite, which set up at the truck cab height and all
time of wagons Our facility is the first in was railed to the the formalities between the driver
significantly.” southern Africa where the Matola port and and the official are done through
He said driver does not have to get chrome to the Port of the window, including the driver’s
discussions were also Maputo. biometrics. At present, it takes a driver
ongoing with CFM out of the cab to complete “The terminal is approximately 45 minutes to get in
for the facility to put customs and immigration. increasingly showing and out of the border and offload.”
its own dedicated – Arnauld Stroebel the value of moving “We now have approval for a
mainline locomotives minerals via rail. It dedicated road from South Africa
into the operation to makes sense to move directly into the facility. This will see
pull trains through to Maputo. 3 000 tons of cargo by rail versus South African officials also stationed
With a state-of-the-art system 80 trucks,” he said. According to at our facility, meaning trucks
for receiving trucks through the Stroebel, much of the dry port’s destined for the terminal can complete
weighbridge, an automatic number success has been its location. Situated all South African and Mozambique
recognition camera that records only 400 metres from the South formalities at the same location,
offloading, and a communication African Lebombo border, and thanks without a driver having to get out of
system that ensures customers are to the efficiency of the customs and his truck.”
southafrica@rangel.com • +27 766 678 818
| TANZANIA
www.rangel.com
October 2022 Mozambique 11
Mozambique
Fruit identified as diversification opportunity
T
he Matola Cargo Terminal
(MCT) is investing in state-of-
the-art cold rooms in Matola.
According to managing director
Sean Gent, this is part of a
change strategy the company has
launched to diversify from the
warehousing of customers’ fast-
moving consumer goods business
to cold storage of perishables, with
a focus on citrus fruits.
“We wish to align our new cold
storage business model similar
to our sister company FPT in
South Africa which has a lot of
experience and knowledge in the
perishable and citrus fruit market,” New cold rooms to serve the perishable industry fitted with state-of-the-art equipment will drive more perishables
he told Freight News. through Matola and Maputo.
He said the decision to build international health and safety According to Gent, Maputo is meeting international standards,
cold rooms had been fast-tracked standards. “We are also going green ideally placed to handle citrus making it imperative that we get
after a fire at the company’s with this facility and it will be fitted exports from the north of South our facility off the ground before
warehousing facility in Matola in with solar panels and other energy- Africa. “With the expected growth the next season. Our goal is to open
February this year. “The fire did saving devices to reduce our carbon of South African citrus, the current our cold storage by April next year.”

a lot of damage and the whole
warehouse burnt down. Prior
to this event we had, however,
been looking at diversifying our
business and had identified fruit
as a major opportunity.”
Gent said the impact of Covid-19
on the Mozambique consumer’s
behaviour, and the retail sector
at large, was a big contributing
factor – and the decision to move
into perishables was a new business
opportunity. The strategy has also
been supported by MCT’s head
office in South Africa, The Logistics
Group SA. “We are targeting at least
15% year-on-year growth – and in
the present market in Mozambique,
we are not going to manage that
through the FMCG sectors.
Gent told Freight News the new
cold rooms would be fitted with the
latest equipment and would meet
“
footprint.” export channels are going to be The facility will be rolled out in
He said congested and phases, starting with cold storage
the return of we have the for up to 1 300 pallets. “This will
citrus exports capacity in be increased as we attract more
to Maputo Maputo to offer volume. We plan to go to 5 000
during the past an alternative pallets within the next two years
season had been
We are targeting at least 15% export-to-market and up to 10 000 pallets within
enthusiastically year-on-year growth – and service. It makes five years.”
received. “We in the present market in sense to export He said with the terminal already
used to handle Mozambique, we won’t manage via the Maputo fitted with its own rail siding,
advocating for more citrus to move
a lot of fruit in that through the FMCG sectors. Corridor.” He said the on rail was a priority.
Mozambique,
but our exports – Sean Gent new cold rooms According to Gent, not only were
stopped for would add value South African exporters being
many years as all to Maputo as an targeted, but also Mozambican
exports moved through the ports export destination – not only for producers. “We have already met
of Durban and Cape Town. The citrus but other perishable cargo. with local producers who are very
decision by exporters to return to Several trial runs of ambient citrus excited about the development and
the Port of Maputo is good news – predominantly going to the Far what we will offer them.”
for the local industry and gives us East – had been handled during The company will embark
the opportunity to diversify our the past season and had gone very on a roadshow later this year,
business and grow volumes through well. “We have already had several introducing the new facility to
the Port of Maputo again.” requests for cold store capacity the market.

Urgent need for random toll fees to be harmonised

The Association of Shipping and
Freight Forwarding Agents and
Port Operators of Mozambique
(Asantrop) has called for a review
of toll fees in the region, calling
them yet another tariff barrier.
According to Desiderio
Fernandes, representative of
Asantrop, there is a need for synergy
when it comes to toll fees. “There
is no logic in how it currently
works,” he told Freight News. “Some
countries charge a rate per kilometre
while others just have a lump sum.
We need a harmonised approach to
tolling to ensure that transporters
and their forwarders know what
they are dealing with and can plan
and budget adequately.”
He said issues like toll fees
easily became a barrier to trade,
driving up the cost significantly.
“We are not doing ourselves or our
region a favour by not looking at
harmonising these and other costs.
All we are doing is making the cost
of freight more expensive. Africa
can thrive and make the business
work, but it needs government
entities to look far more seriously
at aligning costs of goods and
cargo – be it in the transport or
the freight forwarding segment.”
Fernandes said what was also
crucial in the region was the issue
of rail as too much cargo was still
on road, which was taking its toll
on the infrastructure. “Until there
is rail infrastructure and service
that is reliable, freight will remain
on road.”
In Mozambique there was a rail
service, he added, but the problem
was the unreliability of the
service. “You simply cannot book
cargo because you do not know
when or even if there is going to
be a train. We did an internal
exercise measuring the cost of
moving cargo by road and by rail.
While the price was the same the
reliability and time the rail service
took was uncompetitive and took
days longer.”
He said for rail to be a viable
option it would need to not only
improve efficiency and reliability,
but also look at how it could
reduce freight costs.
From a regional perspective,
there would need to be an
alignment of infrastructure – with
all countries using the same railway
gauge and making agreements
allowing crew and equipment to
operate across borders.
“You cannot stop at each border
and either change the crew or the
locomotive each time you pass into
a new country. It wastes time and
drives up the cost, especially if one
is crossing several countries.”

12 Mozambique October 2022

FN4775SD
Mozambique
Logistics park attracts growing customer base
T
he Agility Logistics Park
in Maputo is experiencing
growing demand for its
quality warehouses, according to
Agility commercial manager Neide
Tsenane.
Construction of the 180 000-
square-metre (sqm) warehouse park
commenced before the outbreak
of the global pandemic in 2020,
but progress was hit hard during
Covid-19 – which saw a slow-down
in development until lockdown
restrictions were lifted. “We finally
opened the park in 2021 and
momentum has been growing, with
more and more customer interest in
the park,” she said. The first phase of the Agility Logistics Park in Maputo has
The first phase of the development been completed.
of the warehouse park was
32 000sqm consisting of three warehouses in Maputo are poor companies tend local companies prepare to meet
blocks – two at 9 000sqm each and quality and in need of rehabilitation to opt for large spaces where they ever-increasing international
one larger 14 000sqm facility. “Our or upgrade; the Agility Logistics can store everything on the ground. standard requirements.”
minimum size unit for lease is Park offers a fast and international The Agility Logistics Park enables She said expansion plans were
1 000sqm. Tenants use the space for standard solution to customers. customers to use racking for storage, already on the cards. “As we fill

“
a variety of reasons – from storage Ready-to-occupy units offering bring efficiency to their operations, the existing units we will start
and distribution 24-hour-per-day and significantly reduce the floor development of the next phase as we
to packaging, security along with space they require. still have land available to expand
processing and light professional facility “Many customers have found that the park.”
industrial works. management in the by using racking systems, they need Tsenane added: “The park is
We also offer secure logistics park allow 50% less floor space to operate. We strategically located directly on the
open yard facilities,
The park is promoting a tenants to focus on are spending a lot of time educating new Maputo ring road, providing
and some customers relatively new concept their core business, the market about the cost benefits of excellent connectivity to all the
are already using in Mozambique, that of leaving building using racking.” main roads to other provinces in
bonded facilities.” vertical optimisation. maintenance and She said the park attracted big Mozambique – as well as easy access
Further new facility management and small companies. “We can give to South Africa and Matola. The
tenants are expected – Neide Tsenane to Agility.” smaller players that might not have location is only 20 minutes from the
to sign and start With a nine- as much capex available the ability airport and 20 minutes from the
operations in the metre height in to move into a quality warehouse Maputo port.”
next few months. Current tenants the warehouse units, the park is or factory – and for international Agility is the largest developer
include oil major Total, as well as promoting a relatively new concept companies the ready-made and owner of warehouse parks in
the local Pernod drinks distributor in Mozambique, that of vertical warehouses provide a quick and the Middle East and Africa region
and Transportes do Indico, a local optimisation. “Space in the local compliant way to enter the market. and has similar facilities in Cote
distribution company. market is often thought of only We are seeing strong interest from d’Ivoire and Ghana, and under
Tsenane commented: “Many in terms of flooring area – and so the SME market in particular as construction in Nigeria.

‘We are harnessing our vast natural resource

potential to supply Africa and the world’
Mozambique’s abundance of
resources could catapult it to
becoming a leading energy supplier
not only in southern Africa, but
worldwide as well.
According to António Saíde,
the country’s deputy minister of
mineral resources and energy, while
Mozambique’s vast resources in
the Rovuma Basin are well known,
it is not the only region with
resources. Hydro is also becoming
an increasingly popular option.
“We have vast natural resource
potential,” he said, adding that
this would be capitalised on
domestically to drive Mozambique’s
industrialisation and cleaner energy
programmes.
Speaking at a recent conference,
Saíde said the country’s renewable
energy resources totalled 23
terawatts and included solar, hydro,
wind and biomass.
He said exploration projects were
ongoing as the country was setting
itself up as a serious contributor to
Africa’s clean energy transition.
“We have been playing our role as
providers through power generation
and supply projects in the region;
through transmission lines and gas
infrastructure to South Africa and
Zimbabwe; and we are now building
the Mozambique-Malawi line, and
are preparing one with Zambia.
“We will continue working
to create synergies that will
guarantee access not only to our
own population, but that will also
contribute to filling the energy
deficit in the region and in a global
perspective.”
Saíde said Mozambique had a
reputation for clean energy, having
invested in hydropower for decades
already. “As we invest more in
our gas fields, we see the country
contribute to the green energy
transition even more as we move to
become a leading gas exporter in the
world. We have very clear targets in
place to meet.”
He said the first shipment of the
first cargo of liquefied natural gas
(LNG) from Mozambique’s Coral
South Floating LNG terminal was
imminent.
Once fully operational, the
terminal will produce 3.4 million
tonnes of LNG per year. All of its
output over the next 20 years has
been bought by BP.
The project is one of three that are
set to produce LNG in Mozambique.
The other is that of Total in the
Ravomua Basin and the Rovuma
LNG Project.

14 Mozambique October 2022

Imports a big attraction for logistics companies
M
ozambique continues materials are major trends and are pandemic. “It is slowly but surely commodities. It is also a place to
to be a stronghold for quite important for the market.” recovering, and a lot of change easily introduce a transformer
Rangel Logistics which Moving cargo over long distances is happening. The future for the industry. And, when we think about
sees significant opportunity in the remained one of the biggest country is in oil and gas, but all the a country with a young population,
African country where it opened its challenges in the country. “The actions to ensure that Mozambique this is Mozambique.”
first office in 2012. distance from Maputo in the is on the list of the main producing Simões said ongoing investment

“
According to Antonio Simões, south to the northern provinces is countries may result in great in infrastructure was required.
country manager for Rangel more than 2 500 opportunities “It already has some international
Mozambique, the value proposition kilometres, and for logistics airports, but they are not the best
has been in the ability to offer the distances from companies. As for cargo aircraft. The road network
customers a different kind of solution the seaports to a consequence, also needs to be developed over the
from what they were used to. the hinterland are consumption next few years so that the country
“Clients need only one point of also long. This
Clients need only one point behaviour will can offer better logistics solutions.
contact for all their import and requires a hands- of contact for all their change, making With a revolution in airport
export needs, while they have on team to operate import and export needs, consumers more conditions and the road network,
options in terms of how they pay and control while they have options in demanding, thus Mozambique will be open to the
the charges. This can be pre-paid or the transit and terms of how they pay the developing a new world for business development,
collect,” says Simões. local deliveries. paradigm for including cross-border countries.”
He believes the country offers Mozambique
charges. the Mozambican Finally, regarding the increasing
potential for logistics companies as it is a hinterland market.” investment that Rangel is making
imports a lot of its consumer goods, country, and – Antonio Simões He says the in the African continent, Simões
while it also has important extractive due to its associated says: "We are strengthening our
products for the export market. infrastructure, infrastructure strategy and positioning as cross-
“Industrial products of it becomes a challenging market required to service the oil and border specialists on the African
Mozambican origin represent to guarantee a good offer,” said gas projects alone will offer continent. We recently opened
a very small export share, Simões. opportunity. facilities in Zeerust and have a
however imports represent the He points out that Mozambique “We have a very positive outlook planned opening in Nakop by the
biggest attraction for logistics has faced some challenging times, and believe that the country will end of the year. Durban and Cape
companies. In addition to FMCG, including the insurgency last play an increasingly important Town in South Africa are still
pharmaceuticals and construction year and the impact of the Covid role in oil and gas as well as other scheduled to open in 2023.”

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 Sociedade Industrial e Comercial, Limitada
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Tel.: 924 224 039 - 917 068 406 - 923 546 050 - 912 500 318 - 222 003 287
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Sociedade Industrial e Comercial, Limitada

Sociedade Industrial
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Contribuinte: 5401124112
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Mozambique
Sulphur holds growth potential
R
eload Aquarius Shipping
International is set to expand
its footprint in Mozambique,
having embarked on an aggressive
growth strategy.
According to general manager
Ivailo Gueorguiev, while the company
has had a long-standing presence
sulphur makes sense for operators opt to remain on this corridor and for sulphur, then it is important to
on the Beira Corridor. “You have use the Port of Beira regardless of see why. This demand has created
large amounts of input materials what happens at other ports,” said congestion all over and capacity is
heading into the hinterland, and on Gueorguiev. constrained.”
the reverse you have the export of the Asked about tobacco, a commodity He said the team’s prospects
semi-finished and finished goods.” for which the company is renowned for Beira in the long term were
He said there had been huge and in which it has a lot of expertise, growth. “We have a solid footprint
growth in the movement of copper as Gueorguiev said it would remain in southern Africa and believe that

in Beira, plans are in place to grow
operations.
“We have invested significantly
in our Beira office and are in the
process of moving into a new 20
000-square-metre facility. This
includes 12 000 sqm of warehousing
as well as new offices and a large
yard area.”
He said sulphur was a new
commodity into which the business
had ventured recently on the Beira
Corridor and was excited about the
prospects. “We have handled some 50
000 tons over the past few months.
Growing the volume of imports we
handle is part of our strategy – and
we are not just looking at sulphur
but a range of other commodities.
With this new facility in place, we
are also targeting the export sector,
particularly minerals and metals.”
He said specialising in
commodities like fertilisers and
“
international demand had increased part of the portfolio. “Our strategy Beira can increase the role it has
on the back of is to extend our played in our portfolio to date. We
renewal energy service offering are investing the necessary capital
drives and new and diversify our and human resources to ensure we
mining projects commodity range. are able to offer the same level of
within the SADC Tobacco will service that we do elsewhere – and
region. As long as this corridor continue to play that we have the equipment and
“Historically, continues to grow, we have an important role facilities in place. We believe that
Beira has not in our business.” moving cargo along this route can be
seen the boom
plans to invest and grow
With extensive very beneficial to our clients. Cargo
in sulphur that our presence in Beira. experience in coming in from the Democratic
it is currently – Ivailo Gueorguiev the Durban Republic of the Congo, Zambia and
experiencing, but environment, Zimbabwe is best suited to move
we are hoping that Gueorguiev said along the Beira Corridor in terms of
it is a commodity that is here to stay.” it was important for cargo owners distance.”
The increased sulphur volumes to look at a range of ports for the He said the goal was ultimately to
are being attributed to some of the movement of their cargo rather than grow volumes while making the Beira
congestion being experienced at other relying on just one port of entry. operation bigger. “Tobacco has been
ports in the region, such as Richards “Durban has its fair share of our mainstay for many years. We see
Bay and Dar es Salaam. challenges. We believe Beira can play much potential in this corridor for
“Our goal is to ensure a service an important role in easing some other commodities as well. As long
that adds value and gives cargo of the pressure. It makes sense for as this corridor continues to grow,
owners peace of mind, knowing their clients to spread the load. If one we have plans to invest and grow our
goods are handled well so that they just looks at the increase in demand presence in Beira.”

Future may be promising, but stakes are high

Managing expectations from
local communities and investing
adequately in infrastructure are
two of the biggest challenges
facing Mozambique.
The country’s huge gas finds
in recent years have propelled it
onto the international stage – but
insurgents brought its biggest gas
project to a grinding halt last year.
“Obviously, the security issue
in the north of the country is
a concern and addressing it is
crucial for projects to continue,”
said Duncan Bonnett, a partner at
Africa House.
“However, it is not just about
chasing the insurgents out, it
is also about addressing the
underlying socio-economic
issues. There are a lot of
expectations around what the
gas developments mean for
Mozambicans. Managing the
expectations of people on the
ground will be critical going
forward, especially from a
security point of view.”

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FN9262

18 Mozambique October 2022

Staff investment delivers more efficiencies
T
raining of staff remains a
priority for Ignazio Messina
Mozambique which is
continuing to invest in
its people.
Captain Jayendra Misra, a
director with Ignazio Messina
Mozambique, agents for Ignazio
Messina Italy, says it is an ongoing
process that allows the company to
improve efficiencies and meet client
demands.
“Upskilling of employees is not
just about being able to do jobs more
proficiently, but also to future-proof
talent pipelines. At Messina we see
training as an investment,” said
Misra. “By increasing our knowledge
and skills, we not only improve our
technical output but also improve
the safety of our operations.”
Misra, who has been working
in Mozambique for more than a
decade, said the importance of skills
transfer was another important
element the company needed to
consider. “As a business, we are
committed to transferring skills to
our local employees. In turn, it also
AfDB approves millions for
renewable energy
The African Development Bank
(AfDB) has approved a grant of
$2.5 million to the Mozambican
government to develop renewable
energy resources.
The grant is set to be used
to implement the Mozambique
Renewable Energy Integration
Programme (MREP).
The funding will assist the
national electricity company to
provide financial support for
technical, economic, environmental
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allows us to increase local capacity correctly the consequences are dire.”
and improve our operational
efficiency.”
He said training had become even
more important over the past few
years as the global pandemic hit.
“2020 was a disaster, but everyone
“
was in the same boat. Volumes were
down significantly
and businesses
were all under
pressure. Despite
this, training and Small shipping line
skills development
association established to Mozambique bode
remained a priority
for us,” he said. find solutions to common
And he believes challenges and issues.
training and skills – Jayendra Misra
development is
paying off, with
the turnaround times of vessels
having improved dramatically.
“Our operations are specialised and
complex. We have seen vessels going
from three days in port to only 24
hours, simply by having the right
people on the ground that are well
trained. Also, in our industry, if
operations on a vessel are not done
and social feasibility studies for
the development of a solar floating
power plant in Chicamba reservoir.
In addition, it will support funding
for a feasibility study for Energy
Battery Systems Storage in up
to 10 sites, as well as capacity
building and support for tender
preparation.
The donation will also be used
to conduct studies to increase the
share of variable renewable energy
production.
Asked about 2021, Misra said
revenue was up but volumes were
still down, while 2022 has seen a
slight rise in volumes.
“We handled a lot of transit cargo,
mainly from South Africa and
Swaziland, as well as imports,” he
said. “Our outlook
is far more positive
at the moment
and ongoing
developments in
well for the future.”
These include
efforts to develop
the Maputo
Corridor and
investments in
rail solutions for cargo. “There is
also a focus on growing trade to
Zimbabwe, and we recently did a
very successful exercise on this route.
We are putting more focus on this
with the goal of growing volumes.”
He said with volumes on the rise
the outlook was that this would
continue. “We believe volumes
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will continue to go up, despite the
ongoing challenges in the global
shipping sector – such as the
congestion being experienced, the
shortage of containers, and the high
freight rates.”
Misra said due to these ongoing
challenges, Messina had opted
to pull two vessels from the
Mozambique service to aid its
operations elsewhere in the world.
“This month we will have two vessels
calling and hope to add a third vessel
back on the route soonest.”
He said across industries
businesses were working hard to
bring back stability and certainty
to shipping. “There is a lot of
collaboration happening to address
challenges as a collective. In
Mozambique, we have established
a small shipping line association
with the hope of finding solutions to
common challenges and issues.”
One of the challenges they were
addressing, said Misra, was the
legislation that prohibited shipping
agents and forwarders from doing
any clearing and forwarding.
also serving
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October 2022 Mozambique 19
Mozambique
Projects on the up – outlook promising
M
ozambique is
continuing to offer
major opportunities
to the logistics sector
thanks to new projects as well
as maintenance and upgrades of
existing infrastructure.
According to Philipp Buechler,
managing director for DSV
Mozambique, the company has gone
major $2-billion energy project.
The ground was broken on the
development earlier this year. The
project comprises the 450MW
Central Termica de Temane (CTT)
power plant and the associated
563-kilometre-long Temane
transmission project (TTP).
“Not only is there opportunity
in new project development, but
also developments in Tete – such
as the planned Mphanda Nkuwa
Hydroelectric Project (MNK), a
$4.5bn project on the Zambezi River.
“In Pemba, we have maintained
our presence. Here we have supported
Eni’s offshore project through our
service companies.”
In Beira, Buechler said, the
company was seeing a definite boom
for the Metoro solar power plant in
the north-east of the country and
are busy with a second project – also
in the renewable sector. In Temane
work is gearing up as that project
gets under way.”
He said the biggest challenge for
the logistics sector was to ensure
uninterrupted service, which
was not easy due to the current

from strength to strength in the
country, building up the necessary
experience and knowledge required
for successful operations in the
market.
“We have grown our footprint
significantly in the country and
the region over the past few years,
setting ourselves up as a service
provider of choice,” he said. “With
headquarters in Maputo, the
company is able to service the entire
country through our smaller branch
offices in Temane, Beira, Tete,
Nacala and Pemba.”
According to Buechler, having
a presence on the ground is an
important element of successful
operations in Mozambique.
“Each region has its own unique
requirements, and having the
necessary resources on the ground
goes a long way,” he said.
In Temane DSV is working closely
with Sasol which is involved in a
“
also in servicing the ongoing needs at its facility which handled large global container shortage. “It is
of the existing volumes of very difficult to get hold of empty
infrastructure, transhipment containers, and the surge in freight
including the cargo for rates has had a major impact,
pipeline to South Zambia, particularly on the project sector.”
Africa,” said Not only is there opportunity Zimbabwe and He said Covid-19 had also seen
many projects being put on hold,
Buechler.
in new project development, Malawi.
In Nacala there “Overall we while the security situation in the
are also several but also in servicing the have a very north of Mozambique had increased
big projects to ongoing needs of the existing positive outlook the risk for investors, with many
keep an eye on infrastructure. for Mozambique. taking a wait-and-see approach.
that hold potential – Philip Buechler It does, to a large “Despite this, we have seen a surge
for the logistics extent, depend in projects – and the forecast is very
sector, making it on which field promising,” said Buechler. “The gas
important to have a presence there. you play, but we have a variety of developments are very exciting and
“It is a complicated port and clients, and thanks to our ability to could be a game changer for the
logistics set up in Nacala – and service a diverse range of sectors we country.”
being able to operate from the port have seen our footprint grow.” He said DSV would continue to
and close to the sites was crucial He said work in Mozambique invest in people and equipment
in our decision to set up a local was still largely project-based, and in Mozambique. “You need to
office. Handling cargo well is very with this in mind the company had understand the local landscape as
much dependent on the ability to positioned itself in three segments – well as have the expertise required
micromanage and having a local oil and gas, renewables and project for international logistics. We have
footprint.” cargo. managed to develop our team in
According to Buechler, there are “We have just finalised a project Mozambique to tick all the boxes.”

Rail increasingly considered for containers

The ongoing development of
rail-port infrastructure in
Mozambique has the potential
to make the country’s corridors
some of the most sought-
after in the region, according
to Adélio Dias, director of
communication for Caminhos
de Ferro de Moçambique (CFM),
the government-owned railway
company of Mozambique.
“Thanks to our geographic
location, the advantage of some
of our existing facilities, the
resources in our country, along
with the ongoing investments
we are making, there are many
opportunities for Mozambique.
Another benefit, of course, is the
easy access to China, India and
the Middle East.”
Dias said rail continued to
offer a viable option for the
movement of bulk minerals in the
country but was also increasingly
being considered for containers.
A total of 77% or 4 752 357
metric tons of magnetite were
transported by road for a total
of 6 206 000 metric tons in
2021. “More than 50% of coal is
moved by rail, and last year saw
1 162 009 metric tons moved
by rail of a total of 2 069 000
metric tons.”
He said at present only 18%
of chrome was on rail and 10%
of fuel as the bulk of these
commodities was still on road.
“The majority of containers are
still transported by road, with
only around 15% currently on
rail,” he told Freight News.
He added that growing
capacity both in the ports and
railways in the country would
be a priority for the forseeable
future.

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20 Mozambique October 2022

FN4770SD
Mozambique
New Beira bonded facilities focus on bulk
A
n investment in two new
bonded facilities inside the
Port of Beira demonstrates
RBG Africa Logistics’ (RBG)
commitment in Mozambique and in
particular to the Beira Corridor.
According to Hugo Paraskeva,
Terminal de Minerais Limitada –
earlier this year.
“Moçambique Terminal de
Minerais offers additional bulk
handling solutions. It came into
operation in June this year and
handled 20 000 tons of minerals
the most cost-efficient way of
transporting bulk minerals, and
while the preference was for
road transport, it remained an
important strategy to develop
reliable rail solutions.
“That is why our investment has
market and the rates are very much
benchmarked. As service providers,
we need to offer excellence and that
is what we are going for.”
Paraskeva reiterated that
Moçambique Terminal de Minerais
was going from strength to strength.

executive board member, RBG has
had a presence in Mozambique
for several years now following
the acquisition of the Beira-based
company. “Our operations have
predominantly been in Beira
where we have taken the time to
understand the market trends and
develop our business strategy.”
Speaking to Freight News
Paraskeva said the company had
experienced compound growth over
the past few years and expanding its
footprint and offering their client
base additional logistics solutions
had become a priority. With head
office in Beira, and commercial
offices in Maputo and Harare
in Zimbabwe, the timing was
opportune to expand the portfolio,
he added.
This led to the establishment of
a new business unit – Moçambique
“
after the initial included a rail “We are currently developing
three months.” siding. We have phase 2 of Moçambique Terminal
He said the also installed de Minerais and constructing
additional state-of-the-art the second bonded facility – also
capacity created software and inside the port – to up our capacity
on the Beira Our investment has included technology on and services even further. This
Corridor had the ground. additional investment will consist
been welcomed a rail siding, and we have This allows our of 6 000 square metres of bulk
by the market also installed state-of-the-art clients visibility warehouse, connecting the facility
and projections software and technology on of their cargo at with the rail siding. The facility
were that volumes the ground. any point from is being kitted out with the latest
were set to grow anywhere in the technology, systems and equipment
steadily. – Hugo Paraskeva world.” and we aim to start operations in
“The investment According January 2023,” said Paraskeva.
is located inside to Paraskeva, “Having identified the
the Port of Beira where the intention visibility, reliability and efficiency opportunities, we have entered the
is to develop five hectares of land are key drivers for logistics market with a positive mindset.
and link the facility via road and rail operators. We are confident that our value
into the hinterland. The ambition “Price is no longer a negotiating proposition is a differentiator
in the short to medium term is to factor. Clients know what they and that we will continue to draw
efficiently transport minerals from are willing to pay to move their additional volumes to the corridor
the hinterland into the port by rail.” cargo between two points. There while ensuring efficiency and
Paraskeva said that rail remained are a handful of players in the reliability.”

FN4717SD

22 Mozambique October 2022

Eyeing expansion in mining sector business
T
ransportes Carlos Mesquita
has invested heavily in the
expansion and diversification
of its fleet, acquiring 100 side
tippers, in particular to service the
minerals sector.
According to commercial
administrator Orlando Mesquita,
According to Mesquita, there are regulate unfair competition between declined in recent years, especially
several investment opportunities road hauliers was another stumbling after the global pandemic. This year
for companies in Mozambique, block, while border congestion the conflict between Russia and
particularly in the extractive continued to increase transit Ukraine has impacted volumes, as
industries. “Oil and gas are two times and costs for cross-border has the ongoing military conflict in
industries we are keeping a close transportation. the north of Mozambique that put
eye on and where we see further The macroeconomic instability a halt to oil and gas developments.
developments. Agriculture and that reduced the investment “This significantly reduced the

until last year the fleet largely
comprised flatbeds, low beds and
rear tippers.
“Our decision to purchase more
side tippers was done with the
mining sector in mind as we want to
grow our footprint in this industry,”
Mesquita told Freight News. “We
do, however, have plans in place to
increase the fleet annually as part of
an ongoing strategy to diversify. The
goal is to have a far more diversified
transport solution for our current
and potential customers operating in
the southern Africa region.”
He said continuous enterprise
resource planning (ERP)
developments were also taking place
– aimed at improved customer-
centric services, with increased
proximity to the customer base and
better information.
“
manufacturing also offer increased capacity of many Mozambican volumes to the northern parts of
opportunity.” companies in the country. Regional and global
Logistics the logistics economic recessions due to the
operators in the sector was also pandemic also continue to have an
country, however, worrying, said impact – as has the lack of capacity
do face challenges, Mesquita. “Other by shipping lines to offer logistics
and several This year, we have seen concerns for us equipment such as containers.”
improvements major improvements in the include the poor While it is difficult to predict
are required to main ports in Mozambique in digitalisation the future in these current and
overcome these. Maputo, Beira and Nacala. and system uncertain times, Mesquita said
“Bad road integration in Mozambique was recovering from
conditions in – Orlando Mesquita the logistics the effects of the pandemic, and
some sections of sector in the the level of economic activity in the
the EN1, which region, while country was rising. “It is a trend
is the main road in the country the high bank interest rates inhibit that we expect to continue going
connecting the north to the south, the growth potential of our sector. forward,” he said. “This year, we
do impact transport operations,” The drastic increase in shipping have seen major improvements in
said Mesquita. “Another challenge line costs, which increase the the main ports in – Maputo, Beira
is the bureaucratic processes in logistics cost component for parts/ and Nacala. These infrastructure
Mozambican ports, although we are consumables and other accessories, and technology improvements are
seeing improvements in this regard.” has also had a massive impact.” primarily aimed at increasing port
He said the absence of a body to Mesquita said volumes had capacity and performance.”

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FN4782SD

October 2022 Mozambique 23

Mozambique
Thinking outside the box to address
container shortage in Beira
V
olumes are picking up at
the Port of Beira after a
slow start to the year.
This is good news
says Jan de Vries, executive
managing director at Cornelder de
Moçambique.
“Despite the difficult months
at the beginning of the year, and
the global challenges facing the
shipping industry, the business has
proved to be resilient. We have felt
the impact of the global shipping
line shortages – be it ships or
containers. The situation is now
improving with more containers
and ships available, but it will
remain challenging at least until the
end of the year.”
With the Port of Beira relying
heavily on exports, it has had its
share of challenges – but they differ
from those at the ports of Durban or
Dar es Salaam which import more.
“We normally get large quantities of
empty containers discharged here
for use in various exports – the likes
of copper, tobacco, chrome, timber
and many other exports. In the
current environment shipping lines,
due to the shortages in the major
Beira warehouses bursting at the seams
Warehousing demand in
Mozambique is at a peak and
space at a premium, according to
Kevin Hutton, general manager
of Beira Logistics Terminals (BLT).
Estimates are that warehouses
in Beira are at least 90% full or
more, while vessels continue to
arrive at the port to discharge.
Speaking to Freight News,
Hutton said it was an ongoing
issue. “Trucking capacity has
put a lot of strain on the market.
Clients are unable to move
cargo to the hinterland as
quickly as before.”
According to Hutton, the issue
is simply not enough trucks,
while volumes have increased
significantly over a very short
period of time. This vacuum
of capacity in the Democratic
Republic of the Congo (DRC)
affected the Beira Corridor in
both directions.
“During the first part of the
24 Mozambique October 2022
trade lanes, have been reluctant to
send empties to Africa, limiting
export capacity.
He said the massive escalation
in freight rates had impacted
logistics everywhere. Exports were
on the rise, as was the demand for
containers. “We have clients who
“
are saying give us
containers and we
will export even
more.”
To address the
container shortage, We have seen a major
Cornelder put drop in fertiliser imports is a bit of a reverse
the focus back on
through the port, but
breakbulk and
reintroduced it the sulphur market is
to the Beira port. currently booming.
“We have handled – Jan de Vries
approximately
200 000 tons of
copper in breakbulk this year. It is
fundamentally very different to the
container market and is slower. For
copper, for example, one can load
ships with 30 000 tons a day in
containers compared to 3 000 tons
per day if it is breakbulk.”
He said despite this, the move to
breakbulk had been well-received
year, we hardly moved any
fertiliser through the Port of
Beira due to the ongoing issue
between Russia and Ukraine.
This saw local stocks being
completely depleted. With
nothing available in the market
for a long time, it was inevitable
that everyone would be refilling
at the same time.”
The issue created the perfect
storm in terms of volume and
the lack of trucks – and sulphur
volumes on the Beira Corridor
are at an unprecedented high
at present.
This has seen BLT’s sister
company, Independent Beira
Logistics Terminals (IBLT),
significantly invest in new
warehousing capacity –
specifically focusing on the
bulk sector.
Hutton said that currently there
was not a single corridor running
into the Copperbelt that was not
in the market. “It might not be the
perfect solution but it is addressing
the need in the market and we are
moving commodities that would
otherwise be standing still.”
He said imports were also seeing
some move towards breakbulk.
For example, rice was nearly fully
containerised,
but this year the
company expected
to handle nearly
200 000 tons of rice
in breakbulk. “It
trend away from
containerisation
but it is largely
being driven
by the current
international
market conditions,
and we expect things to return to
normal in the course of next year.”
According to De Vries, the
Ukraine/Russia conflict also had
an impact on Beira as the war saw
fertiliser prices skyrocket. Fertiliser
is traditionally imported through
the Port of Beira for the agricultural
sector in the hinterland. “We have
at full capacity. “Customers are
constantly commenting about the
lack of trucks in all areas. Finding
solutions to handle additional
tonnage while keeping costs in
line is a focus at the moment.”
He added that the lack of
truck capacity had had a major
effect on volumes moving in
and out of Beira. “The impact
of this is that warehouses have
filled up with slow-moving cargo
going to the DRC. Clients are
“
looking for extended free days of
The vacuum of capacity in
the Democratic Republic of
the Congo has affected the
Beira Corridor in both
directions.
– Kevin Hutton
seen a major drop in fertiliser
imports through the port but
the sulphur market is currently
booming – and those volumes are
significantly up.”
Demand for sulphur has been
on the increase in Zambia and
the Democratic Republic of the
Congo where mining houses have
been expanding exploration and
production. “There is also no reason
to believe this activity in the mining
sector will slow down any time
soon as the demand for copper is
expected to increase.”
With Beira ideally placed to
service the mining sector, the trend
of growing sulphur imports and
copper exports is not expected to
decline soon.
“Beira is the shortest route to
market and it makes sense to use
this port,” said De Vries. “At present,
it is moved mostly on trucks and
investment into rail solutions would
be welcomed.”
He said the port received its first
sulphur vessel three years ago and
operations were of such a standard
that the number of vessels had only
increased.
storage to reduce costs.”
The challenge, said Hutton, was
to manage space effectively and
ensure that handling was quick
and efficient for
cargo going
to regions
in the
hinterland
other than
the DRC.
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FN4780SD
Mozambique
IMF makes good on favourable outlook,
extends millions in bridging finance
T
he International Monetary
Fund (IMF) remains
upbeat in its outlook for
Mozambique, having
approved a $456-million extended
credit facility arrangement with the
country earlier this year.
The three-year arrangement
will help support Mozambique’s
country and prepare it for the
potentially very strong outlook
going forward as it becomes a
significant natural gas exporter in
the coming years.”
Selassie said in the near term,
the emphasis would be on making
sure that social protection was
advanced and that a balance was

“
economic recovery and its policies struck between addressing the
to reduce infrastructure the
public debt country had and
and financing required, along
vulnerabilities – with any other
thereby creating Mozambique’s economic development
space for priority recovery continues, with progress it Economic recovery and growth is high on the Mozambican agenda.
investments needed to make. December this year. economic recovery.”
in human
growth in the first half of “As the IMF, “Mozambique’s economic He said global commodity
capital, climate 2022 above expectations … we are promoting recovery continues, with growth price increases had supported a
adaptation and following a robust recovery governance and in the first half of 2022 above noticeable rebound in exports, but
infrastructure. of services, industry and transparency expectations and an increased had also pushed up food, fuel and
Speaking at agriculture. as another core output projection of 3.8% this transportation costs. These were
a recent press aspect of the year, following a successful public driven mostly by Russia’s invasion
briefing, Abebe – Alvaro Piris programme, and vaccination campaign and a robust of Ukraine and the related increases
Aemro Selassie, we look forward recovery of services, industry and in global fuel and food prices.
director of to supporting agriculture,” said Alvaro Piris, Inflation rose to 12.1% in August,
the IMF’s African department, the authorities’ ambitious reform leader of the IMF team who visited the highest level since September
elaborated: “It is a relatively agenda in this vein.” the country. 2017.
ambitious programme that will In September, IMF staff “The increase in international “The Bank of Mozambique
look to address the significant reached an agreement on the food and fuel prices, however, (BM) has responded proactively
macroeconomic challenges policies related to the programme, continues to pose a challenge. The to contain inflation, raising the
Mozambique has been facing in the following a successful mission to authorities are taking measures policy rate to 15.25% in March and
wake of the Covid-19 pandemic. Mozambique. This will see $63.8 to mitigate the impact on the cost continuing the tightening cycle
“The aim is to help bridge the million of the funds disbursed in of living and to strengthen its started a year ago,” said Piris.

Delays at Beira increase already high logistics costs

Bureaucracy and red tape
continue to be challenging for
operators in Mozambique.
Several freight forwarders told
Freight News that the number of
documents and the paperwork
processes and documentation are in Beira in particular are working ultimately, the world.”
duplicated on each side.” together increasingly to correct Another forwarder said if
What makes matters worse is the situation and improve the Beira and its service providers
that much of the paperwork is ease of doing business. Talks with got it right, and the government
still handled manually. “This also government officials are ongoing. helped the situation by making
leaves the door open to untoward “One common phrase I keep policy and legislation easy

required for moving cargo often
delayed transport for days at
a time. This was not only a
problem in Mozambique but
across southern Africa as well.
“Loading a truck can easily
take a week as you wait for
the correct documents,” said a
forwarder. “On arrival at the
destination, it can take another
week before you can offload –
and then you wait yet another
week before you can load the
backload and return.
“Then, of course, there is the
red tape at every border post, on
each side of it, because all of the
“
practices by certain hearing is that to use through the reduction
people, plus it is whatever we all of bureaucratic red tape, the
more susceptible to do individually – corridor would be primed for big
human error.” be it as a group things.
All of this adds to of forwarders, “While there are still some
the cost of logistics, Loading a truck can transporters, serious challenges here, a lot is
which, on a corridor easily take a week warehouse owners also changing. There is ongoing
investment in the logistics
like Beira, is already
as you wait for the or shippers – it is in
high. our best interests sector, and while the changes
“Some of these correct documents. to benefit Beira as may appear small to the outside
practices are it makes the place world, these are incremental
shortsighted as and the corridor changes.
they result in the corridor being competitive,” said the source. “It all adds up to an
uncompetitive on a global scale, “Yes, we compete against each environment that is growing and
and that is really where we are other, but we are also seeing the pushing its way onto the main
competing,” said another source. big picture. We are competing stage. There is a positivity about
On the bright side, forwarders against the region and, Beira despite the challenges.”

26 Mozambique October 2022

Shipping lines pose serious threat to
smaller forwarders
T
he ongoing move by “The Mozambican corridors all African countries. “Mozambique is taking a lead in
container lines to are growing and there are “From a regional and continental this. From a country perspective,
diversify and include opportunities for freight level, the issue is being taken up,” we have engaged the minister
a forwarding arm may forwarders, but SMEs face a host said Fernandes. “One must not of transport and presented the
have left the large global players of challenges resulting in them forget that for smaller operators situation to him, asking him to
seemingly unperturbed, but for not being able to access any of the one of the biggest challenges is the change our internal policy to

small operators, this is a growing
concern.
In Mozambique and the region,
the trend is starting to impact
small to medium (SME) freight
forwarders as they are increasingly
being sidelined.
According to Desiderio
Fernandes, representative of
the Association of Shipping and
Freight Forwarding Agents and
Port Operators of Mozambique and
current president of The Federation
of Clearing and Forwarding
Associations of Southern Africa
(FCFASA), it is an issue that has
been brought to the attention of
the national associations in the
region and is worrying.
“
opportunities lack of access safeguard against this encroaching
that exist.” to financing. behaviour. He has called all parties
He said as An SME to present their facts and has said
more and more approaching a he will look into the matter and the
shipping lines bank is expected policies and legislation involved.”
encroached An SME approaching a bank to put down Paulo Aquimo, a member
on forwarder is expected to put down significant of the Association of Logistics
territory, significant collateral which collateral which and Shipping Operators of
pushing an end- they often don’t Mozambique also agrees, saying
to-end logistics they often don’t have. have. Going that small forwarders simply
strategy, smaller – Desiderio Fernandes up against an don’t stand a chance against
operators in international the container lines-turned-
particular were shipping line that forwarders.
facing closure. has become a freight forwarder With no timeline available –
It is an issue that is of concern becomes impossible.” or even a commitment that the
not only to forwarders in He said there was no hope of government will change policy –
Mozambique but the region, says fighting this from a country level there’s a fear that many small
Fernandes, who has recently - hence the move to a regional and SMEs will close their doors in
opened membership of FCFASA to continental approach. the interim.

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October 2022 Mozambique 27

Mozambique
Total’s LNG project hangs in the balance
I
t remains anyone’s guess as to
when a $20-billion liquefied
natural gas (LNG) project in
Mozambique will take off again,
after French energy group Total
declared force majeure in April 2021
anything should happen on the
project, it won’t be before the first
quarter of 2023.
Total had aimed to produce its first
cargo from the project in 2024, but
the group withdrew all of its staff
liquefaction plant with capacity of
13.12 million tonnes per annum
(mtpa).
“There is a lot of interest in
southern Africa’s gas fields,” said
a logistics service provider who
in the projects in the country overall.
Given what is happening in South
Africa and its struggles over power
and politics, Mozambique continues
to attract attention as a place to
invest.”

following Islamic State (IS)-linked
insurgent attacks.
Logistics operators in the country
are keeping a close eye on the project
as it holds major potential for work.
“There is a lot of focus on the project
and everyone is watching to see how
it is resolved,” an operator told Freight
News. “Everyone wants to be involved
in the project, but it is still on hold. No
one knows what is happening or when
it will get back on track.”
These sentiments were echoed
at the annual Africa Oil Week
conference, held in Cape Town at
the beginning of October, with the
Mozambican delegation asking
repeatedly where the project stood.
No conclusive answers were given
and everyone Freight News spoke to
said it was a matter of wait and see.
Early predictions are that if
“
in 2021 when dozens of people were preferred to remain anonymous. “If He added that the East African
killed in attacks in one considers the nation’s economy was thriving, the
the coastal town of amount of gas that currency was stable, it had sufficient
Palma – the closest Mozambique has and power and the infrastructure was not
town to the project. the global demand too bad.
Given its large, for gas – particularly “A lot of what is happening
low-cost resource Logistics operators have now, given the in Mozambique pivots on the
base, Mozambique been banking on the interruption of developments in the north,” said
is desperate to see LNG project for a long supplies in Europe – another source. “If the big LNG
Total return to the the importance of project goes ahead, it will be a driver
time and no one seems
project and take up this project is clear. of growth and foreign investment. If
construction again. to have any idea of an “Fossil fuels are not it does not get off the ground again,
This project alone alternative if this fails. going to be abolished, then someone had better come up
would enable the but moving away with another plan.
country to be one of from coal is going “As it is, we have been banking on
the key supply centres of LNG in the to result in an increase in the use the LNG project for a long time and
world. of gas.” no one seems to have any idea of an
The LNG project includes Another logistician said everyone alternative if this fails.”
development of the Golfinho and was interested in gas projects like Clearly, ensuring that the region is
Atum natural gas fields in the this as they were lucrative and offered safe and ridding it of IS insurgents
Offshore Area 1 concession, and stable work over several years. will be imperative for the project to
the construction of a two-train “Also, there is a lot of investment stand any chance of success.

Challenges of relying on the despachante

Mozambique’s despachantes, or
clearing agents, are not gaining
popularity among the freight
forwarding community.
That’s because all customs
clearances have to go through a
customs broker – or despachante, as
they are known locally – and delays
are a common occurrence.
“Customs clearance has been
identified as the process with the
highest risk in our supply chain
solution to clients,” said an operator.
“This is mainly because of the
despachantes. They take a long time
and it is not an easy process dealing
with them.
“Given that forwarders are not
licensed directly with customs and
that there is a policy prohibiting us
from clearing directly, we have no
choice but to use them.”
It becomes particularly difficult
when working on time-sensitive
projects involving big volumes of
containers.
As the operator explained: “We
have worked on projects bringing
in 4 000 containers and 45 000
square metres of breakbulk, and it
all waits for the clearing agent. It is
by far the biggest risk.”
Another forwarder said it was
a unique operating environment
that often left one completely out of
control. “It is exceptionally difficult
to hand over all of the control like
that to a broker who is representing
you at customs. You cannot cover
yourself at customs. You have to
have an agent.”
He said while the despachantes
were very positive and flexible in
rendering assistance, forwarders
had to use these services on their
timelines and protocols.
“With that in mind, it is
important to work by the book
and follow legislation carefully and
correctly. Audits are important to
ensure that you are not hit with big
fines, and there’s no cutting corners
at any point.
“If one understands this process
and is able to find several brokers
who understand your business
ethos, it becomes more navigable.”
Operators agree that in
Mozambique consistent and honest
operations go a long way.

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FN4686SD

28 Mozambique October 2022

Sasol aims to extend gas supply
to South Africa
S
asol will continue to invest best interests of the market, the drilling. We are also looking at However, he added, businesses
in its gas operations in company and the country. another offshore field in Angoche, hoping to be part of this upcoming
Mozambique, according “Partnerships and collaboration where we also hope to do an initial energy boom would have to look to
to the company’s vice- with stakeholders are, however, exploration early next year.” decarbonise their production.

president for gas sourcing and
business development, Alfred
Seema.
“Sasol is continuing its
investment in the current reserves
in order to extend the gas
production plateau and extend gas
supply to Mozambique and South
Africa,” he says.
“We are also developing
further sources of gas, including
exploration and liquefied natural
gas (LNG) supply. Engagements
with gas suppliers are progressing
to procure gas molecules from
Matola.”
According to Seema, Sasol
believes it is important to have
multiple terminals for South Africa
to import LNG as this increases
competitive tension and is in the
“
crucial to success,” he adds. Seema says gas will play a “Decarbonising is becoming
Seema says dominant role like a licence to operate,” he said,
the company in the southern indicating that an effective way
is continuing African energy mix, to do this was through expanding
to work very especially in light into natural gas. He said renewable
closely with the of calls for more energy offered an opportunity
Mozambican Gas has generated decarbonisation. to open up new revenue streams
government as significant socio-economic Speaking at the and secure energy access for the
it is pursuing benefits for Mozambique recent Africa Oil continent’s people.
several and the region. It is Week conference Seema agrees, saying: “Gas has
exploration in Cape Town was also generated significant socio-
undoubtedly integral to
opportunities Oliver Onyekweli, economic benefits for Mozambique
to enable it to our energy security. an associate partner and the region. It is undoubtedly
supply low-cost – Alfred Seema at management integral to our energy security.”
gas to South consulting firm According to Seema, gas has
Africa. This McKinsey & helped Mozambique sustain an
includes an onshore field known as Company. He pointed out that average of 35 900 jobs per year,
PT5-C. Africa was one of the few regions has had a $0.6 billion impact on
“The initial exploration of in the world likely to see growing low-income households and a
this field is planned for the first energy demand over the coming $11.5 billion total impact on GDP,
quarter of 2023, when we will start decades. contributing 6.4% to GDP.

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October 2022 Mozambique 29