Name and Location
Nacala corridor project, Mozambique.

Client
Vale and Mitsui (70%) and the Portos e Caminhos de Ferro de Moçambique (30%).

Project Description
The Nacala corridor project, located in northern Mozambique and southern Malawi, is being implemented to provide logistical support for the Moatize coal project, in Mozambique.

The project involves the construction and rehabilitation of the 912 km railway through Mozambique and Malawi, and the construction of a new coal terminal in Nacala-a-Velha port.

The project includes:
– a 201 km greenfield railway line, connecting the mine in Moatize to the existing line in Malawi – 62.5 km is in Mozambique and 138.5 km in Malawi;
– the rehabilitation of 682 km of the existing railway line – 98.6 km in Malawi and 583.3 km in Mozambique; and
– the construction of a 29.3 km greenfield rail link connecting the existing railway to the new coal terminal to be built in Nacala-a-Velha. The railway line will have a capacity of 22-million tonnes a year.

Part of the transport capacity of the rail line is planned to be used for general cargo other than coal, such as other minerals and agricultural products, as well as for passengers. In addition, the rail line and port shipping capacities have room for further expansion, should there be a future increase in demand. The coal terminal will have a loading capacity of 18-million tonnes a year, while the general cargo terminal will have a loading capacity of four-million tonnes a year.

Value
The total construction cost is estimated at $4.4-billion, with part of the cost to be funded with project finance from public financial institutions overseas, and Japanese banks.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Vale communications manager Sheila Cheman, tel +258 84 312 8103 or email sheila.cheman@vale.com.
Mitsui & Co corporate communications division, tel +81 3 3285 7596 or fax +81 3 3285 9819.