Getting to the Market: A Transport Infrastructure ViewMozambique’s Moatize Coal Basin

24 June 2014

· Project location – Tete province in Mozambique

– Prospective final market destinations· India· China· Europe

· Challenge: market access at a competitive price with service reliability

· Historic starting position– Road link to rail terminal at Moatize

· Congested and weight restricted road bridge – Rail line to the port of Beira

· 6Mtpa capacity limit – rehabilitation required– Beira port infrastructure

· Redundant coal terminal· Tidal port· Restrictive marine channel

Background Moatize Coal Basin

2010 2013 20160

10

20

30

40

50

Client

CHINDE

Facilitating Decision MakingKey Performance Expectations

· Stakeholders – public and private

– Client

– Rail and port organization – CFM

– Local, regional and national government

– Community and environment

· Clarification of the stakeholder needs

· Risks

– Level of dependency

– Consequence

– Communication

Transport Infrastructure

Operations

Hinterland Transport

Port

Global Market

Systems ViewConnecting stranded assets to markets

Land-side infrastructure

Marine-side infrastructure

Integrated port

operations

Mine infrastructure

Processes & operations

Shipping

Coastal

Deepsea

Parcel size Flow Speed Connectivity

Alternative modes and logistics strategies

Barging

Road

Mine

Nacala

Conveyor

Multi-modal

Rail

Beira*

MaputoCapesize

Panamax

Handymax

* – Option for offshore transhipment

Chinde

System IntegrationAlternative modes and logistics strategies

2010 2013 20160

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10

15

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25

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Client

Production Ramp-upUnit Capacity

3Mtpa 16Mtpa 40Mtpa

Existing road (Vehicles per day)

40t 250 1334 3334

Prospective road (vehicles per day) 100t 100 534 1334

Existing rail (Vehicles per day)

2,700t 4 20 50

Prospective rail (Vehicles per day)

25,000t 0.5 2 6

60,000t 50 267 667

80,000t 37.5 200 500

200,000t 15 80 200

* – Annual number of ships

*

**

OR

· Beira solution– Existing Sena line refurbished– Existing Beira port coal terminal – refurbished– Existing Beira port – offshore transhipment– Prospective Beira port – new coal terminal– New Savane offshore terminal

· Nacala solution– New and refurbished cape gauge via Malawi– New standard gauge in country– New deep water coal terminal

· Other options– Barging down the Zambezi to Chinde –

offshore transhipment– New and refurbished rail line to Macuse –

new port development

Tailored solutions to meet supply chain needs

www.mottmac.com

Themba Muchaneta – Africa Advisory DivisionInfrastructure PlanningE: Themba.Muchaneta@mottmac.comT: +27 (0) 11 566 8300M: +27 (0) 79 246 6680

David Hunter – Africa Advisory DivisionInfrastructure PlanningE: David.Hunter@mottmac.comT: +27 (0) 11 566 8479M: +27 (0) 76 028 1356