Mozambique - Transportation Mozambique - Transportation
Overview
The development of oil and gas projects and the economic growth of neighboring countries will drive the transportation sector in Mozambique. All major ports need to be expanded or upgraded, new roads and rail lines are required, the local airline needs to expand its fleet, and new airline operators are expected to enter the market in the next few years.
Mozambique is divided into three development corridors that link its ports to inland parts of Mozambique and neighboring countries: Maputo Corridor (south; linked with South Africa and Eswatini), Beira Corridor (center; linked with Zimbabwe), and Nacala Corridor (north linked; with Malawi and Zambia). These corridors include multiple transport logistics subsector and industrial developments.
Aviation
Mozambique has one national airline, Linhas Aéreas de Moçambique (LAM), which held a monopoly on domestic flights for decades until 2017. Based on a government tender which for the first time offered domestic routes to additional operators, a new airline called FastJet started operating domestic routes in late 2017. Routes under the same tender were awarded to at least two additional companies, one of whom is in the final stages of operational approval and is expected to begin flights on domestic routes prior to the end of 2018. The domestic aviation sector could hold large growth potential as Mozambique attracts foreign investors and strives to become a tourist destination. South African Airways, Kenyan Airways, Turkish Airlines, Qatar Airways, Ethiopian Airlines, TAP (Portugal) and TAAG (Angola) have regular international flights to Maputo. South African Airways and Kenyan Airways also have international flights to other Mozambican provincial capitals.
The oil and gas and mining sectors are expected to require charter airline services, creating potential demand for air transport related goods and services for both cargo and passenger operations.
Marine
The major commercial ports are located in Maputo/Matola, Beira, Nacala, and Pemba. Port operators can be allocated long-term operating concessions by the state. Portos e Caminhos de Ferro de Moçambique (CFM), the state-owned port and rail company, has a stake in all port concessions. Major local ports are connected by rail and road to inland countries and mining regions. Malawi, Eswatini, South Africa, Zambia, and Zimbabwe all use Mozambican ports for part of their exports and imports.
The largest and most developed port is the Port of Maputo, which is operated by the Maputo Port Development Company (MPDC). MPDC announced plans to invest USD750 million to boost handling capacity to an annual 48 million tons a year by 2033.
The second largest port, Beira, completed significant upgrades over the past decade and is Zimbabwe’s main port of entry to the world market. Cornelder de Moçambique is the port operator.
The third largest port is Nacala, which is operated by Portos do Norte (PN). Nacala is a natural deep-water port, has recently been renovated, and is due to expand its operations to accommodate more containers and refrigerated cargo. Nacala Port could also become a logistics port for the oil and gas industry. The adjacent Nacala A Velha Port is a large coal terminal operated by Vale Moçambique. Nacala Port also services Zambia’s and Malawi’s exports and imports.
The ports of Pemba and Palma are expected to become key servicing and logistics ports for the oil and gas industry.
Rail
The rail network in Mozambique is comprised of east-west routes running from South Africa to the Port of Maputo, from Zimbabwe to the Port of Beira, and from Zambia/Malawi to the Port of Nacala. There are no north-south routes in the country.
New investment in rail lines will be directly linked to the price of coal or other major export commodities. Caminhos de Ferro de Moçambique (CFM), the state-owned rail company, is under pressure to modernize rail lines to improve safety and cargo capacity, but it is struggling to meet this demand due to a lack of financing capacity and technological know-how. CFM could welcome private rail operators to develop rail projects as part of joint ventures.
Road Freight
Road freight is the main form of domestic transportation; however, the road infrastructure is very poor and fragmented. There is one major road, the EN1, linking the north and south of the country. Other primary routes are along transport corridors – largely running east/west in parallel to the rail links described earlier. There are no trucking companies that cover the entire country. The largest company, Transportes Lalgy, covers the south and center of the country and provides links to South Africa, Eswatini, and Zimbabwe.
Leading Sub-Sectors
Aviation
- Airplane parts and maintenance services
- Airline management software
- Ground support equipment
- Passenger transport vehicles
- Cargo handling and logistics equipment
- Aircraft technician training systems
- Pilot and crew training systems
- Airport security systems
- Radio communication systems
- Program based air transport services
- Port automation equipment
- Port related machinery
- Port servicing vessels – cabotage vessels and tugboats
- Port security and safety equipment and training
- Port infrastructure
- Rail maintenance equipment
- Trains and cargo wagons
- Rail related machinery
- Rail security and safety equipment and training
- Road infrastructure equipment and machinery
- Trucks and spare parts
- Road freight services
The best prospects in this sector are for equipment and services related to port remodeling and maintenance. New coal terminals will be built at the Beira or Nacala ports. As port traffic increases there will be demand for new cranes, lifts, trucks, barges, and rolling stock. Railway construction, locomotives, and related services are also needed.
Opportunities
Newly built Nacala and Pemba airports are engaged in aggressive marketing in order to attract airlines to use their facilities for passenger and/or cargo services. Both airports are considered to be underutilized. A new airport to be financed by the Chinese government has been announced for the southern city of Xai-Xai.
Given that new marine ports are being built and existing ports are expanding, there are opportunities for port infrastructure related exports. The Ministry of Transport and Communications has called on the private sector to invest in cabotage services and equipment.
Web Resources
Government Portal
Ministry of Transport and Communications
Airports of Mozambique
Portos e Caminhos de Ferro de Moçambique (CFM)
Port of Maputo
Port of Beira
Port of Nacala
Ports of Pemba and Palma