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Mozambique Ports & Rail Market Overview and Opportunities

Overview

Mozambique is a Portuguese-speaking country located in Southern Africa along the Indian Ocean. With a surface area roughly the size of Texas and Louisiana, the country’s coastline is over 1600 miles long extending from South Africa to Tanzania, or roughly the distance from Miami, FL, to Portland, ME.  Mozambique is divided into three development corridors that link its ports to industrial and mining regions as well as inland countries. The rail network is primarily used to export minerals and agricultural goods and import fuel, fertilizer, and machinery. Port operators are allocated long-term operating concessions by the state-owned port and rail company; Portos e Caminhos de Ferro de Moçambique (Ports and Railways of Mozambique; CFM), which in turn has a stake in these concessions.  

Port of Maputo  

The largest and most developed port is the Port of Maputo, operated by the Maputo Port Development Company (MPDC), a joint venture between Dubai Port World and Grindrod. The port is linked to Eswatini, South Africa and Zimbabwe by road and rail exporting minerals and agricultural products from these countries.  

Port of Beira 

The second-largest port, Beira, completed significant upgrades over the past decade and is Zimbabwe’s main port of entry to the world market serving as transport hub for fuel, coal and machinery. This port has seen increased exports during the COVID pandemic and plans to expand its capacity in the future. It is operated by Dutch company Cornelder.  

Port of Nacala

The third-largest port is a natural deep-water port in Nacala, which is operated by CFM. It has recently been renovated, expanding its operations to accommodate more containers and refrigerated cargo. The adjacent Nacala-a-Velha Port is a coal terminal operated by Indian mining company Vulcan International. Nacala Port also services Zambia and Malawi’s exports and imports through a rail network operated by Nacala Logistics, a subsidiary of Vulcan International. 

Ports of Pemba and Palma

Finally, further north, the ports of Pemba and Palma are expected to become key servicing and logistics ports for large LNG projects in the northern Province of Cabo Delgado. The Port of Pemba is also becoming an export for critical minerals such as graphite, the port will need to upgrade its infrastructure to achieve this, including a new railway connection.  

Opportunities 

Ports Sector  

  • In February 2024 MPDC announced plans to invest USD 2 billion to boost handling capacity to an annual 48 million tons a year by 2033 and 54 million tons by 2058. USD 600 million is expected to be invested over the next 3 years. This will increase the capacity of the container terminal to 1 million twenty-foot equivalent units (TEU)/year, increasing the capacity of the Matola coal terminal to 18 million tons/year and the general cargo terminal to 13.6 million tons/year. The port will build new berths, expand the container terminal, and expand and simplify its rail infrastructure.   
  • Additionally, the Matola Terminal will include the development of an LNG import terminal with a new jetty with 4.9 MTPA capacity, and additional fuel berth with 3.7MTPA capacity.   
  • The Port of Pemba is also undergoing expansion to accommodate graphite mineral exports and service offshore LNG projects.  
  • Finally, several new ports have been proposed, such as Macuse in Zambezia Province and Angoche in Nampula Province. Development of these will depend on demand for coal and natural gas, as well as the regional production of agricultural goods.  

Rail Sector

  • CFM is investing in rail expansion to keep up with higher volumes of trade, particularly mineral exports from South Africa. The company has partnered with MPDC to expand the Ressano Garcia line capacity running from the border with South Africa to the Port for Maputo. Phase 2 of the project will cost USD 80 million, doubling the lines capacity from 8 million tons to 20 million tons.   
  • The Machipanda Line, also in the south of the country, is also undergoing a rehabilitation program valued at USD 150 million. CFM plans to acquire new rolling stock and locomotives to service these expansions. 
  • Nacala Logistics and CFM are exploring the possibility of linking the Nacala Corridor to the Lobito Corrido from Angola, creating the first East-West rail link in Southern Africa.  

Constraints  

  • Red tape and lack of transparency hamper trade and port and rail operations  
  • CFM’s lack of technical expertise slows down decision making; political interference in the state-owned company also affects its commercial effectiveness  
  • The central and southern rail lines are underutilized, constraining port expansion  
  • Smaller ports lack attention and investment.  

Despite some market challenges, U.S. companies in the infrastructure sector have a strong global reputation for design and engineering, consulting, innovative technologies, after-sale service, and are well-positioned to compete for major Mozambique project opportunities.

For more information look at our Moving with Africa reports covering Opportunities in Port and Rail for U.S. Companies in Sub Saharan Africa 

For more information, contact Commercial Specialist - Daniel Donato at Office.Maputo@trade.gov 

 

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