Thai Moçambique Logistica (TML) is reviving its initiative to construct a coal port in Macuse, Mozambique, near the Zambezi River mouth.
Despite the waning interest in Mozambique’s coal industry, TML is committed to proceeding with its long-term investment, having secured US$500 million for the project.
Construction is slated to begin in mid-2024 on a 5.3 square kilometer parcel of land designated for the port, as reported by Bulk Materials International.
However, while this announcement signals a resurgence, it does not guarantee project completion.
TML acquired a concession from the Mozambican government in 2013 to build and manage the port and railway, originally intended to address transportation constraints hindering coal industry expansion.
Delays have arisen due to global shifts in thermal coal demand.
The specific types of coal TML plans to handle have not been disclosed, although Mozambique possesses both coking and thermal coal.
The port’s potential extends to timber exports, positioned north of Quelimane in Zambézia province.
Initially, TML was set to operate the project with a 60% stake alongside Mozambique’s Codiza consortium, the country’s freight rail operator, Portos e Caminhos de Ferro de Moçambique.
The plans also entail a 525km railway connecting the port to coal mines in Tete Province, with a spur line to Chitima. This route offers a shorter alternative compared to Beira or Nacala ports.
Contracts for railway construction were awarded to Mota Engil Mozambique and China Machinery Engineering Corporation, with an initial target capacity of 25 Mtpa, expandable to 100 Mtpa.
While funding discussions initially involved Sinosure and Chinese banks for the US$3.3 B project, the financial landscape has likely evolved over the years, suggesting increased financial demands.
