Development of Mozambique’s port & rail systems

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 MOZAMBIQUE TRADE ROUTES
AT CENTER OF GLOBAL LOGISTIC CHAIN

VALEMAX / CAPESIZE PANAMAX HANDYMAX HANDYSIZE

CHINA MAX 2
Southern Africa Transport Corridors Southern Africa Rail Network & Ports

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TRANSPORT CORRIDORS – LIFELINE OF MOZAMBIQUE

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 CFM PORT TRAFFIC

10^3 Ton. Métricas 25,000

20,000

15,000

10,000

5,000

0
Maputo Beira Nacala Quelimane Pemba* Total
2009 8,167 3,030 1,270 70 115 12,652
2010 8,606 3,805 1,376 131 160 14,079
2011 11,762 5,704 1,629 186 177 19,458
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 CFM RAIL TRAFFIC

8,000

7,000

6,000
10^3 Ton.Líquidas

5,000

4,000

3,000

2,000

1,000

0
Goba R.Garcia Limpopo CFM-S CFM-C CFM-N Total
2009 577 2,679 504 3,760 554 296 4,610
2010 702 2,637 642 3,981 1,039 272 5,293
2011 772 4,510 723 6,005 1,019 242 7,265
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MOZAMBIQUE: THE TRANSPORT CHALLENGES

Fastest growing non-oil growing economy in Sub-

Saharan Africa
GDP growth averaged 8% from 1993 to 2010

Vastly underexplored, world-class mining

destination.
Large number of active prospecting &
exploration licenses for metals and minerals
Massive coking and thermal coal
reserves – annual output potential 100MT +
Giant natural gas discoveries

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TETE – A STRATEGIC COAL HUB

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Mozambique Railway Network
South Railway Network

Ressano Garcia Line

Goba Line Salamanga Branch Line

Limpopo Line Xinavane Branch Line

Center Railway Network

Machipanda Line

Sena Line

North Railway Network

Nacala Line

Cuamba-Lichinga Line
 New Transport Logistic Options
1 MOATIZE – BEIRA – SENA LINE (575 KM)

2 MOATIZE – NACALA VIA MALAWI (913 KM)

3 MUTARARA – MUTUALI – NACALA (≈ 700 KM)

4 MOATIZE – NACALA THRU MOZAMBIQUE ( ≈ 1,070 KM)

5 MOATIZE – MACUSE (525 KM)

6 LICHINGA – PEMBA (≈ 700 KM)

7 TECHOBANINE – BOTSWAN THRU ZIMBABWE (1200 KM)

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New Transport Logistic Options
New Port and Railway Projects - South

Port of Techobanine
Techobanine-Bostwana Railway Line
Souh-North Railway Line (1)

New Port and Railway Projects – Center/North

Moatize to Nacala-a-Velha Railway Line (Via Malawi)

South –North Railway Line (2)
Chiúta to Nacala-a-Velha Railway Line (Via Moz)

New Beira Coal Terminal

Port of Macuze

Moatize to Macuze Railway Line

New Coal Terminal - Nacala-a-Velha

New Port and Railway Projects – North

Lichinga to Pemba Railway Line

South –North Railway Line (3)
Port of Palma
 Reabilitações e Expansões
Rehabilitation and Expansions
South Railway Network

Ressano Garcia Line

Goba Line

Center Railway Network

Machipanda Line
Sena Line

North Railway Network

Port of Nacala

Cuamba - Lichinga Railway Line

 SENA RAILWAY LINE ALIGNMENT

Malawi Km 44

CAMBULATSISSE
Zambeze Valley VILA-NOVA Km 82
DONA-ANA MARROMEU
Km 487
Km 291 Sugar & Molassos

SENA MIGA

MOATIZE Km 287
INHAMITANGA
Km 545 Km 183
Coal Mines & Other Minerals Zambeze Valley INHAMINGA
Km 157

Zambeze Valley
MUANZA
Operator: CFM & Mining Companies Km 90
Sena Line Present Capacity: 6 MTPA
Sena Line Upgrade:
Stage 1: 10-12 MPTA
Stage 2: 20 MTPA
DONDO
13
Km 0
Beira Port

2015 – NEW COAL TERMINAL (15-20MTPA)

OIL TERMINAL

GENERAL CARGO
TERMINAL

CONTAINER
TERMINAL
FACT SHEET
Project: New Coal Terminal
Sponsors: CFM, Private Sector
Project Cost: $600m
Capacity: 15-20 MTPA
Land: 52 hectares
Completion: December 2015

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2. NACALA CORRIDOR (VIA MALAWI): TRANSPORT LOGISTIC OPTION

FACT SHEET
Project: New Railway line Moatize-Nacala,
thru Malawi
Sponsors: CFM, Private Sector (Vale
Emirates)
Project Cost: $3.4Billions
Length: 913 km (Green field:230 km)
Capacity: 22 MTPA
Start-Up 13MTPA: September 2014
Start-Up 15MTPA: November 2015
Start-Up 18MTPA: March 2016
Completion 18MTPA : June 2016
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PROPOSED NACALA –A-VELHA COAL TERMINAL

 Natural Deep Water Port (Capesize + Panamax): 1 berth, depth: -20m CD;
 Capacity: 18 Million tons per annum Coal (Coke & Thermal);
 Rail Unloading: 1 Wagon Tippler 4.800tph, 2 simultaneous wagons;
 Static Stock Yard: 1.455,0 Kt (turn over ~12x);
 Stockyard: 3 lines of 5 piles x 97.000ton = 1.455.000 ton (~12 turns);
 Stockyard machines: 2 Stackers (4.800tph) & 2 Reclaimers (5.100tph);
 Conveyor Belt: capacities of 4.800 and 5.100 tph, speed ~4,0 m/s;
 Shiploaders: 2 shiploaders (5.100tph);
 Employes During Operation: ~290
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4. NACALA CORRIDOR THRU MOZAMBIQUE TRANSPORT LOGISTIC OPTION

Sponsor: CFM, Private Sector

Type: Green field
Route: Chuita - Nacala
Project Cost: Rail $2.5b; Port - $0.9b
Rail Length: 1,070 KM
Capacity: 40/100 MTPA
Track: Standard Gauge
Axle Load: 32-ton axle load
Train Composition: 300 cars

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5. MOATIZE – MACUSE TRANSPORT LOGISTIC OPTION

Project: Moatize- Macuse

Length: 525KM
Sponsor: CFM, JV Partner
Project Cost: Rail & Port: $1.3b
Capacity: 25 MTPA

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MACUZE PORT - INDICATIVE TERMINAL & PORT CONCEPT

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6. LICHINGA – PEMBA TRANSPORT LOGISTIC OPTION (≈700 KM)

Length: ≈700km
Type: Greenfield
Project Cost: $3b; Port - $0.6b
Capacity: 25 MTPA

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MENU OF TRANSPORT OPTIONS

Multi Purpose
NACALA Line
Corridor

MOATIZE
New Lines

MACUSE

SENA LINE

Multi Purpose
Corridor

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MAPUTO ZONE OF INFLUENCE: THE BOUNDARIES
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 MAPUTO ZONE OF INFLUENCE

SECTOR PRODUCT WEST CENTER & CENTER & CENTER & NORTH
MAPH MAPH MAPH
ENERGY Coal Witbank Ermelo
STEEL Magnetite Plalaborwa
STEEL Chrome Rustenburg Witbank Middlelburg Lyndenburg Plalaborwa
STEEL Manganese Nelspruit
INDUSTRY Copper Plalaborwa
CIVIL WORKS Granite Rustenburg Belfast Lyndenburg Potgietersrus

CIVIL WORKS Cement Goberone Gauteng Middelburg Nelspruit Pietsburg

FERTILISER Phosphate Plalaborwa

CHEMICALS Secunda
CONTAINER Gauteng Witbank Nelspruit

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 MAPUTO ZONE OF INFLUENCE - COMPETITIVENESS

Absolute Rail Distances Maputo Durban SA Richards Cape SA AVG

(KM) MZ Bay SA

WITBANK SA 469 801 627 1,662 890

PRETORIA SA 575 763 683 1,586 902

RUSTENBURG SA 661 874 794 776

TZANEEN SA 452 1,160 972 2,038 1,156

LYDENBURG SA 443 856 668 1,868 959

NELSPRUIT SA 219 830 642 1,902 898

PHALABORWA SA 374 1,083 895 784

PIETERSBURG SA 550 935 802 762

GWERU ZB 967 1,764 1,684 1,472

BULAWAYO ZB 1,083 1,880 1,800 1,588

MATSAPA SW 228 544 371 381

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Maputo Port Expansion Areas Map

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RESSANO GARCIA UPGRADE

FACT SHEET

•CFM investment Last 2-4 Years: $20millions

•CFM investment next 3 Years: $240millions
•Present Rail Traffic: 4.5m tons
•Traffic Potential: Coal, Magnetite,
•Technical Options: Doubling, Upgrade of Rail and
Bridges, Improvement of Signaling and
telecommunications

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Techobanine Rail and Port Project

DRY BULK
MINERAL

FACT SHEET:
Sponsors: CFM, Private Sector
Project Cost: $5.255b
Railway Length: 1200 km
Completion: June 2016
Port and Rail Capacity: 30-100 MTPA
Completion: 2016

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DEEP SEA PORT OF TECHOBANINE CONCEPTUAL LAYOUT
WET BULK

INDIAN OCEAN
BREAK WATER NORTH

BREAK WATER SOUTH

Crude oil products, LPG,
S NPG, crude oil…
B
N

DRY BULK

Steam coal, cocking coal,

iron ore…

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 ACQUISITION OF LOCOMOTIVES AND WAGONS

ACQUISITION OF NEW LOCOS ACQUISITION OF NEW WAGONS

CFM-S: 10 locos from GE (CFM funds CFM-S: ≈500 wagons

@ $4.1m each)
CFM-C : ≈ 500-1000 (MP & Coal)
CFM-C: 10 – 15 locos being processed

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 General Financing Issues

Type of Projects: size of projects

Appetite: In terms of amount

Indicative Term Sheet

Instruments Available – Senior Debt, Mezzanine, Equity

Financing to: CFM, JV Company

GOM Guarantees

Modalities:

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The real Kings of Logistics

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 THOUGHTS FOR THE DAY
 “In the search for partners to acquire
we adopt the same attitude one might
find appropriate in looking for a
spouse: it pays to be active, interested
and open-minded, but it does not pay
to be in a hurry”
Warren Buffet

 “If you can dream it, you can do it”

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