Noting rising fuel prices and traffic congestion at Durban harbour that will be exacerbated in the near future by port construction, the Citrus Growers' Association (CGA) of SA is again urging its growers in northern areas to use Maputo. However, to utilise Maputo, citrus product movers will have to leave the comfort zone of containerised transport and return to the days of bulk shipping. "The industry is targeting container shipping to reduce the total cost of logistics without exploring other vital options," said CGA CEO Justin Chadwick in a report to growers. Container shipping, especially to the UK and Europe, is not available at Maputo for high citrus volumes. "Breakbulk shipping through Maputo works well and growers who transported to Maputo (in 2011) said it worked just as well — but be sure to pre-clear the trucks at the borders. The conclusion was reached that Maputo could and should be used as an ambient port, and that growers could save hugely on transport and port costs by trying this. Could Maputo not be an option to ship the vast amount of grapefruit that is grown just across the border, to Japan?" Chadwick posited to growers. A CGA study by logistics development manager Mitchell Brooke last year put Maputo 450 km closer to SA's northern citrus growers than Durban. Road seems the only option for citrus transporters at present. "Rail, or more specifically the incumbents of the service, are failing to respond to concerns raised with them, mostly to alleviate rising transport costs," Chadwick reported. Another factor, Chadwick told growers, is that "the construction and development in the Durban port will add to the challenges of shipping through Durban next year and the year after, so using Maputo port must be considered as an option." (in Freight & Trade Weekly - 27 Jan 2012)

Grindrod Limited and the Vitol Group, one of the world’s largest energy trading businesses, have entered into an agreement effective 1 January 2012. Vitol will acquire from Grindrod a 35% interest in the company which owns the Maputo coal terminal concession for a consideration of US$67.7 million. Grindrod was awarded the concession to operate this terminal known as Terminal de Carvão da Matola (TCM) until 2033 with an option to extend the concession for a further 10 years. To date US$70 million has been invested in the refurbishment and building of infrastructure expanding the capacity of the terminal to 6 million tons per annum. TCM is ideally situated for the export of coal to international markets. The dredging of the port channel was completed in 2011 allowing larger vessels up to Panamax size to enter the port contributing to the port’s competitiveness.

Demand for capacity at TCM continues to grow which led to the feasibility study for an expansion of capacity by 20 million tons (phase 4) requiring an investment of approximately US$ 800 million. The expansion project involves excavation and land reclamation; resulting in a footprint of 120 hectares; the construction of two additional berths, a stockyard and railway infrastructure.

Alan Olivier, CEO Grindrod Limited said: “Vitol is the ideal partner to assist us in the coal terminal in Maputo. They have significant experience in building terminals and they are a reputable global trading business. I believe our shareholders and customers will benefit, as through this transaction we have increased our capability to deliver on this strategic expansion project and we look forward to further developing our relationship with Vitol.”
 
The transaction is subject to approval from the Mozambican government.

The volume of cargo handled by the Limpopo railway line could reach 700,000 tonnes by the end of this year, according to projections by Mozambique’s publicly-owned rail and port company, CFM. These projections are based on current trends in the Zimbabwean economy, which show signs of improvement, coupled with growing regional interest in Maputo port as an import and export route.
 
Rebuilt in 2004 after the destruction caused by floods in 2000, the Limpopo line has been operating far below capacity due to weak demand from Zimbabwe and other countries in the region. Currently, the line is capable of handling two million tonnes of cargo annually with trains moving at speeds of up to 50 kilometres per hour.
 
According to the Chairman of the CFM Board, Rosario Mualeia, the company needs to carry out better routine maintenance on the line. The Limpopo line is 522 kilometres long, running from Maputo port to Chicualacuala district, in the southern province of Gaza. It is beginning to attract more customers from neighbouring Zimbabwe and other countries in the region, which see it as a viable and cheap alternative access route for international trade.
 
Mualeia told Radio Mozambique that “this year we want to invest in maintenance in order to reach profitable cargo volumes in this important line. Indeed, we already have customers who inform us that they want to ferry 500,000 tonnes of ferrochrome along the line. Certainly, this is a positive development since the current demand is below capacity”.
 
Last week, Mualeia visited the Limpopo railway line accompanied by technical staff and managers to assess the state of the line. “The truth is that we expected to find things in a worse condition since the line is seldom used. We have identified the areas where intervention is required, and I can guarantee that the line is fit to meet the demands of both the domestic and international markets, even taking into account growth projections for the near future”, he said.
 
Mualeia conceded that CFM if battling with a severe shortage of locomotives and wagons. The company has ordered 230 new wagons, while locomotives are being repaired in the company’s workshops. According to Mualeia, under ideal conditions, CFM should have at least 1,500 wagons.(source: AIM)

Salgaocar, an Indian multinational specialized in the exploration and export of iron ore for the great Asiatic markets and Europe, began their export operations in the Port of Maputo on the 22nd of December.
The new iron ore terminal will officially export two million tons/year, but this number can easily reach four million tons/year.
The iron ore comes from Ngwenya, Swaziland, where this mining exploration is causing an extremely positive impact in the surrounding communities. The mine exists for over 43.000 years but it's been a long time since it was last explored. The importance of this project is such that the beginning of the operations in the Port of Maputo was marked by an official ceremony where The Transport Minister and the Vice-Minister of Foreign Affairs from Swaziland and a representative of King Mswati III were present.

The World, the first and one of the few residential cruise ships in the world, docked at the Port of Maputo on the 15th of December, where it stayed for 3 days. The World is a cruise ship with unique characteristics because it belongs to its residents, about 300 people of 40 different nationalities who circumnavigate the planet all year round.  Some residents live on board full time while others visit their floating home periodically throughout the year. The World is 196 meters long, has 12 decks and a maximum speed of 34.3km/h. The ship has 165 residential units (106 apartments, 19 studio apartments, and 40 studios), all owned by the ship's residents.

The World has facilities similar to those on board a regular cruise ship, and also some that are unique due to its residential nature. They include a small grocery store and delicatessen, a boutique, athletic facilities that include a golf simulator, putting green, full-sized tennis court, jogging track and gym. There are also five restaurants on board, a movie theatre, a library, music and dance performances and many other entertainment activities.

As it is usual in this festive season, MPDC will stop normal operations at 1500h of the 24th of December and will resume all operations on the 26th of December at 0700h. The same stoppages will be observed on the 31st of December at 1500h and returning on the 2nd of January at 0700h.
MPDC wishes all a Merry Christmas and a Happy New Year!