CDN – Corredor de Desenvolvimento do Norte

CORREDOR DE DESENVOLVIMENTO DO NORTE SARL www.portodenacala.co.mz

INTRODUCING NACALA Nacala city in northern Mozambique is located in the Nampula Province. Nacala is located in the Indian Ocean, 160 km (100 mi) northeast of Nampula and 60 km (40 mi) north of Ilha de Moçambique. Nacala has air and naval bases and some industrial development, including two cement factories. Sisal, copra, and cotton are produced in the surrounding region. Although the potential of the city's deep natural harbor has long been recognized, major development of the port and completion of rail connections inland only occurred in the late 1960s. Railroads link Nacala to Lichinga in Niassa Province and to Malawi's rail network. This route, called the Nacala Corridor, was intended to provide Malawi with a shorter, more reliable connection to the sea than by way of the alternate routes through Zimbabwe and South Africa. Damage to rail lines and economic disruption in northern Mozambique, during the struggle for independence in the early 1970s and during the civil war in the 1980s, vastly reduced shipments through Nacala during these periods.

CDN AND NACALA CORRIDOR PROJECT CDN – Corredor de Desenvolvimento do Norte is integrated into the Nacala Corridor Project, which comprises the northern region of Mozambique, Malawi and Zambia. It interlinks the Port of Nacala with the Railway Systems of Northern Mozambique and Malawi, under a single management system, creating a seamless, cost efficient transportation system, which allows the integration of synergies between different inter-modal transportation systems. This Project also includes the rehabilitation and exploitation of the Malawian railway infrastructures. To achieve this objective Central East African Railways (CEAR) was created, with the same shareholder structure.

CDN CONCESSIONS The project consists on three fundamental elements: • The Port of Nacala in Mozambique - CDN - PN • The northern railway network of Mozambique – CDN - Railway • The railway system in Malawi - CEAR

CDN SERVICES The CDN (Corredor de Desenvolvimento do Norte) project aims at rendering port and railway services: Transport of passengers and goods,  Handling of dry and liquid cargo,  Storage of national or in transit goods,  Loading and unloading of ships,  Leasing of space within the concession area. 

RAILWAY

THE PORT OF NACALA The port of Nacala is an international port situated in Northern Mozambique at Longitude 40º 40' E and 14º 27' S, on the south side of Baía de Bengo, a large and sheltered bay, 60m deep and 800m wide at the entrance. The Port of Nacala serves its own hinterland and landlocked Malawi to the west, which is served by a 914km railway. Typical cargoes handled include containers, break bulk and general cargo: agricultural products, tobacco, timber, cement, fuel and oils, and grains.

PORT LIMITATIONS Because of its natural deep water and sheltered position, Nacala has no restrictions on ship movement or size, with the exception of alongside the quay. Pilotage is however compulsory, ships being boarded 2 n miles 237º from the Nacala lighthouse, unless strong winds are blowing, in which case pilots then board within the bay.

PORT FACILITIES Currently, the Port of Nacala has: A General Cargo Terminal with four berths, able to handle 2.400.000 M/T of cargo per year, with • eight warehouses, covering a total surface area of 21.000m2 A Container Terminal with two berths, able to handle 45.000 TEUs per year; • A Liquid Bulk Terminal linked by a 3.5 km pipeline to fuel tanks, as well as to vegetable oil tanks. •

NACALA ADVANTADGES Existing infrastructures: • Roads- From and to Nacala- Nampula is asphalt-paved, in good condition and well maintained. • Railroads- Mozambique total network as 610Km, and CEAR total network is797Km the cost of transportation by rail to Malawi is nearly half the cost of transport by truck. • Natural Deep Water Port- handling 45.000 TEU and is being examined in order to increase to 75.000 TEU´s. Airport- 2.400 meter long runway (45m wide) and possible to extend to 4.000 meters. • • Water- 1 Dam. The anual precipitation in this area ranges from 800 to 1.000mm. • Electricity- a 110Kv transmission line runs from Cahora Bassa Dam in Tete Province to Nacala. Private Investments during 1990 – 2002: $421 million of wich 33% went into manufacturing; • 27% to agriculture; • 20% to mining; • • 11% to transportation • 5% to tourism and constrution

INCENTIVES There are some national and provincial Development Plans held by the Mozambican Government, emphasis on economic growth for poverty reduction as: • PARPA – The Mozambican version of Poverty Reduction Strategy Paper (PRSP); • Nampula Province Development Plan – this plan states its objective as to eliminate poverty through continuing enhancement of production value and more equal distribution of wealth. As also some existing development plan in the target areas: • Nacala Port Development Plan- assumed by CDN, under the plan, light and heavy industries were to be attracted around a fuel berth consisting of a petroleum refining facility and storage facilities, and a mineral berth that would handle minerals such as coal and other mineral substances. • Nacala City Zoning Plan Study- this plan proposes 4 zones comprised of urban core functions, industry and services provision, and residential and agricultural development. And 2 zones of residential land development and green area preservation. • Investment Plans by Private Enterprises- the oil refinery plant construction; a petrochemical industrial plants; and related infrastructure such as access road and railways. Also plans for agriculture such as the processing of cashew nuts, peanuts, sesame oil, and banana plantations at a large-scale.

PLAN FOR THE FUTURE INDUSTRIAL PARK

MASTER PLAN – PORT OF NACALA

DEVELOPMENT PROJECTS Construction of a Sugar Terminal Construction of a Liquid Bulk Storage Facility Construction of a Grain Terminal Handling services

INFO Related Lecture: The Train of Salt and Sugar Based on a true story, the book follows a train and its passengers on their harrowing and often violent journey during the Mozambican civil war. Available in English and Portuguese. The Times - Railway back in African hands Transport System Upgrade Begins

CDN – Corredor de Desenvolvimento do Norte

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