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Port ofperceptions
Changing
         Beira




                 www.cornelder.co.mz
Port of Beira




Changing
perceptions
The Port of Beira, Mozambique, is playing a
major role in the nation’s economic growth
by delivering a cost-effective service for the
region’s land-locked states

written by: Gay Sutton
research by: Abi Abagun
Port of Beira




                  O
                                 ccupying over 1,300 miles of marketing manager Félix Machado. The
                                 the eastern coast of southern obligations were far-reaching and included
                                 Africa, Mozambique is a investing in equipment and infrastructure,
                                 strategically significant cutting costs, and improving efficiency
                                 transport corridor for land- and productivity. The port was required to
                  locked Zimbabwe, Zambia, Malawi, DRC improve its safety and security, facilitate
                  and of course, Mozambique itself. Over local and regional trade and growth, and
                  the past 15 years, the Port of Beira, which protect the environment. “And we have
                  has strong infrastructure links with these achieved all of those. Today, we are locally
                  hinterland countries, has been undergoing and regionally competitive and make a
                  significant expansion and investment and major contribution towards the growth
                  attracting increasing volumes of trade. of the economy. We are efficient and cost
                  Today, it is making a major contribution to effective and have captured a major share
                  the economic growth of the region.               of the import and export market.”
                     The period of investment                                        The Port of Beira
                  began in October 1998                                           operates within its original
                  when Mozambique started
                  with new reforms (oriented
                  by the World Bank and the
                  IMF) to place the ports
                                                       40%
                                                        Proportion of port
                                                                                  12-berth footprint. The
                                                                                  port comprises a container
                                                                                  terminal and general cargo
                                                                                  (operated by CdM), fuel
                  under private management             throughput destined        terminal, coal terminal,
                  and stimulate growth; and                  for export           grain terminal and quay
                  the government handed                                           number one reserved as
                  the management of the                                           a fishing harbour. The
                  Port of Beira to Cornelder de Mozambique container terminal handles a variety
                  (CdM). A joint venture 67 per cent owned of products including tobacco, soft
                  by Rotterdam-based Cornelder Holding timber, ferrochrome, logs and cotton,
                  and 33 per cent owned by the government and the general cargo terminal handles
                  entity Mozambique Ports and Railway fertiliser, wheat, clinker for cement, sugar,
                  (CFM), CdM has steered the port maize and coal. Today, 60 per cent of
                  through a period of infrastructure and throughput is in imports and 40 per cent
                  commercial development and plans to is in goods for export.
                  accelerate that growth to support trade             The condition of the road network
                  and industry in the region.                      along the Beira Corridor is generally
                     “We took over on 15 October 1998 with good to excellent; however, there are
                  a 25-year concession and a further 15-year some sections which are in poor condition
                  extension if we achieved our obligations or have severe speed restrictions, for
Lifting freight   within the first 15 years,” explains sales and various reasons. Beira is the central
Port of Beira

hub of the Beira Railroad
Company, the country’s             Nectar
                                   The Nectar Group provides port-related bulk handling and
longest established railway
                                   bagging services, primarily for the discharge of bulk, dry
system. The Machipanda             and free flowing commodities, such as grain, cereals and
Line extends to Harare in          fertilisers. The Group also offers consultancy, terminal
Zimbabwe, creating a cost          design and development, in addition to the management
effective route to port for        and maintenance of mobile harbour cranes, ship-to-shore
all the land-locked central        gantry cranes and the wider range of bulk handling and
southern African states.           terminal equipment.
The Sena Line links the            In 2011 the Group established Nectar Coal Handling
                                   Mozambique Ltda to provide operation, maintenance and
port to the lucrative and
                                   management support for a coal terminal.
nationally important coal          Nectar Mozambique Ltda and the wider Nectar Group are very
mining province of Tete,           proud to be associated with CdM, CFM and the Port of Beira.
providing a low cost export        Nectar: Driven by innovation.
route for companies such           www.nectargroup.net
as Vale and Riversdale
Mining. A considerable
amount of work has recently been done on
the Sena Line, which reopened recently.
The Machipanda Line, meanwhile, is to
undergo further improvements.
   In spite of the obvious commercial benefits
of this accessible and cost effective import
and export route, attracting hinterland
trade to the port has not been easy.
   “One of the big challenges we have had to
face is a long-standing negative perception
of safety and security at the port,” Machado
says. Security was one of the first issues
to be tackled from the beginning by CdM                                    Ships docked at the port



     “One of the big challenges we have had to
    face is a long-standing negative perception
        of safety and security at the port”
Port of Beira




                                           The port operates within its original 12-berth footprint

as part of its investment plan; however Malawi tobacco industry is an excellent
changing the negative perception and example of the success of these policies. In
convincing possible customers of the 1998, Beira handled just 10 per cent of the
economic benefits of using Beira was an trade; today, it accounts for 60 to 70 per cent.
uphill task. “People were very resistant      On the sea side, the port is accessed
to change,” he continues. “To overcome via the Mancuti Channel, which was
this reluctance we made a                                 dredged between 2010 and
strategic decision to offer                               July 2011. The port can
lower import rates, increase
the free period of any
commodity coming from                  1.9                now receive deepwater
                                                          vessels. As a result of the
                                                          positive market-oriented
the hinterland countries,
and generate availability
                                  million                 philosophy of CdM,
                                                          container traffic in 2011
of empty trucks in all
those countries to attract
                                  tonnes                  has risen from 105,000
                                                          to 160,000 TEUs, an
the exports.”                      General cargo          increase of 50 per cent.
   Gradually, habits have         throughput, 2011        General cargo throughput
been changing, and the                                    has also grown by around
Port of Beira

40 per cent, from 1.2 million tonnes to
1.9 million tonnes, in the same period.
   The vision for the future of the port is
ambitious. A number of critical expansion
projects are currently underway and more
are planned for the future. Construction
work is in progress at the container
terminal, and this will increase container
storage capacity from 6,400 TEUs
to 11,400 TEUs. At the general cargo
terminal, the final touches are being made
to a dedicated tobacco storage facility.
Both projects should become operational
by August this year. “We are also putting
in a new dedicated container gate, to
separate the access routes for container
and general cargo traffic and to facilitate
the flow of trucks,” Machado says.
   In the medium term, plans are in hand                                                                                  A number of critical expansion projects are currently underway at the port
to double the storage capacity at the grain
terminal from 30,000 tonnes to 60,000           is examining the viability of building       side of the business for the                                      figures amply illustrate this.


                                                                                                                                     54%
tonnes, and to construct a dedicated            new dedicated terminals to improve           next 15 to 20 years with                                          In 1998 just 15 per cent of total
fertiliser terminal to improve the efficiency   the efficiency of mineral, sugar and car     the quays we have. The                                            traffic through the port was
and capacity of the operation. The aim is to    handling. Meanwhile, it’s also addressing    general cargo terminal,                                           generated by Mozambique.
improve vessel turnaround time and triple       longer term capacity planning. “The          however, is likely to come                                        Today, it accounts for 54 per
or even quadruple offloading capacity           container terminal was originally designed   under pressure,” Machado           Proportion of the port’s       cent of the traffic, Malawi
from the current 2,000 tonnes a day to          for 100,000 TEUs, and with all the           explains. “So our plan is to         traffic generated by         for 22 per cent, Zimbabwe
8,000 tonnes. If all goes according to plan,    improvements we’re making it should have     construct a further 300 to               Mozambique               15 per cent and Zambia eight
construction will begin this year.              a capacity of 400,000 by 2015. We believe    600 metres of quays with a                                        per cent. With the region’s
   Looking to the future, the company           we can continue to operate the container     draft of 12 to 13.5 metres for                                    economic growth set to
                                                                                             general cargo, and together with CFM (the continue, the Port of Beira is well placed to
                                                                                             landlord), we’re currently engaged in the provide a cost effective and efficient import
        “Our plan is to construct a further                                                  feasibility studies for this project.”
                                                                                                Since achieving political stability in
                                                                                                                                              and export route for future trade.

      300 to 600 metres of quays with a draft                                                the mid 1990s when the current spate of
                                                                                             economic reform began, Mozambique
                                                                                                                                                For more information about

       of 12 to 13.5 metres for general cargo”                                               has enjoyed continuous growth, strongly
                                                                                             supported by the Port of Beira. And the
                                                                                                                                                Port of Beira visit:
                                                                                                                                                www.cornelder.co.mz
Port of Beira
Cornelder de Moçambique S.A.R.L.
Porto da Beira, Largo dos C.F.M.
P.O. Box 236

T + 258 2332 2734/5
www.cornelder.co.mz




Produced by:




www.bus-ex.com

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Portof beira emea-july12-bro-s Researched Abi Abagun

  • 1. Port ofperceptions Changing Beira www.cornelder.co.mz
  • 2. Port of Beira Changing perceptions The Port of Beira, Mozambique, is playing a major role in the nation’s economic growth by delivering a cost-effective service for the region’s land-locked states written by: Gay Sutton research by: Abi Abagun
  • 3. Port of Beira O ccupying over 1,300 miles of marketing manager Félix Machado. The the eastern coast of southern obligations were far-reaching and included Africa, Mozambique is a investing in equipment and infrastructure, strategically significant cutting costs, and improving efficiency transport corridor for land- and productivity. The port was required to locked Zimbabwe, Zambia, Malawi, DRC improve its safety and security, facilitate and of course, Mozambique itself. Over local and regional trade and growth, and the past 15 years, the Port of Beira, which protect the environment. “And we have has strong infrastructure links with these achieved all of those. Today, we are locally hinterland countries, has been undergoing and regionally competitive and make a significant expansion and investment and major contribution towards the growth attracting increasing volumes of trade. of the economy. We are efficient and cost Today, it is making a major contribution to effective and have captured a major share the economic growth of the region. of the import and export market.” The period of investment The Port of Beira began in October 1998 operates within its original when Mozambique started with new reforms (oriented by the World Bank and the IMF) to place the ports 40% Proportion of port 12-berth footprint. The port comprises a container terminal and general cargo (operated by CdM), fuel under private management throughput destined terminal, coal terminal, and stimulate growth; and for export grain terminal and quay the government handed number one reserved as the management of the a fishing harbour. The Port of Beira to Cornelder de Mozambique container terminal handles a variety (CdM). A joint venture 67 per cent owned of products including tobacco, soft by Rotterdam-based Cornelder Holding timber, ferrochrome, logs and cotton, and 33 per cent owned by the government and the general cargo terminal handles entity Mozambique Ports and Railway fertiliser, wheat, clinker for cement, sugar, (CFM), CdM has steered the port maize and coal. Today, 60 per cent of through a period of infrastructure and throughput is in imports and 40 per cent commercial development and plans to is in goods for export. accelerate that growth to support trade The condition of the road network and industry in the region. along the Beira Corridor is generally “We took over on 15 October 1998 with good to excellent; however, there are a 25-year concession and a further 15-year some sections which are in poor condition extension if we achieved our obligations or have severe speed restrictions, for Lifting freight within the first 15 years,” explains sales and various reasons. Beira is the central
  • 4. Port of Beira hub of the Beira Railroad Company, the country’s Nectar The Nectar Group provides port-related bulk handling and longest established railway bagging services, primarily for the discharge of bulk, dry system. The Machipanda and free flowing commodities, such as grain, cereals and Line extends to Harare in fertilisers. The Group also offers consultancy, terminal Zimbabwe, creating a cost design and development, in addition to the management effective route to port for and maintenance of mobile harbour cranes, ship-to-shore all the land-locked central gantry cranes and the wider range of bulk handling and southern African states. terminal equipment. The Sena Line links the In 2011 the Group established Nectar Coal Handling Mozambique Ltda to provide operation, maintenance and port to the lucrative and management support for a coal terminal. nationally important coal Nectar Mozambique Ltda and the wider Nectar Group are very mining province of Tete, proud to be associated with CdM, CFM and the Port of Beira. providing a low cost export Nectar: Driven by innovation. route for companies such www.nectargroup.net as Vale and Riversdale Mining. A considerable amount of work has recently been done on the Sena Line, which reopened recently. The Machipanda Line, meanwhile, is to undergo further improvements. In spite of the obvious commercial benefits of this accessible and cost effective import and export route, attracting hinterland trade to the port has not been easy. “One of the big challenges we have had to face is a long-standing negative perception of safety and security at the port,” Machado says. Security was one of the first issues to be tackled from the beginning by CdM Ships docked at the port “One of the big challenges we have had to face is a long-standing negative perception of safety and security at the port”
  • 5. Port of Beira The port operates within its original 12-berth footprint as part of its investment plan; however Malawi tobacco industry is an excellent changing the negative perception and example of the success of these policies. In convincing possible customers of the 1998, Beira handled just 10 per cent of the economic benefits of using Beira was an trade; today, it accounts for 60 to 70 per cent. uphill task. “People were very resistant On the sea side, the port is accessed to change,” he continues. “To overcome via the Mancuti Channel, which was this reluctance we made a dredged between 2010 and strategic decision to offer July 2011. The port can lower import rates, increase the free period of any commodity coming from 1.9 now receive deepwater vessels. As a result of the positive market-oriented the hinterland countries, and generate availability million philosophy of CdM, container traffic in 2011 of empty trucks in all those countries to attract tonnes has risen from 105,000 to 160,000 TEUs, an the exports.” General cargo increase of 50 per cent. Gradually, habits have throughput, 2011 General cargo throughput been changing, and the has also grown by around
  • 6. Port of Beira 40 per cent, from 1.2 million tonnes to 1.9 million tonnes, in the same period. The vision for the future of the port is ambitious. A number of critical expansion projects are currently underway and more are planned for the future. Construction work is in progress at the container terminal, and this will increase container storage capacity from 6,400 TEUs to 11,400 TEUs. At the general cargo terminal, the final touches are being made to a dedicated tobacco storage facility. Both projects should become operational by August this year. “We are also putting in a new dedicated container gate, to separate the access routes for container and general cargo traffic and to facilitate the flow of trucks,” Machado says. In the medium term, plans are in hand A number of critical expansion projects are currently underway at the port to double the storage capacity at the grain terminal from 30,000 tonnes to 60,000 is examining the viability of building side of the business for the figures amply illustrate this. 54% tonnes, and to construct a dedicated new dedicated terminals to improve next 15 to 20 years with In 1998 just 15 per cent of total fertiliser terminal to improve the efficiency the efficiency of mineral, sugar and car the quays we have. The traffic through the port was and capacity of the operation. The aim is to handling. Meanwhile, it’s also addressing general cargo terminal, generated by Mozambique. improve vessel turnaround time and triple longer term capacity planning. “The however, is likely to come Today, it accounts for 54 per or even quadruple offloading capacity container terminal was originally designed under pressure,” Machado Proportion of the port’s cent of the traffic, Malawi from the current 2,000 tonnes a day to for 100,000 TEUs, and with all the explains. “So our plan is to traffic generated by for 22 per cent, Zimbabwe 8,000 tonnes. If all goes according to plan, improvements we’re making it should have construct a further 300 to Mozambique 15 per cent and Zambia eight construction will begin this year. a capacity of 400,000 by 2015. We believe 600 metres of quays with a per cent. With the region’s Looking to the future, the company we can continue to operate the container draft of 12 to 13.5 metres for economic growth set to general cargo, and together with CFM (the continue, the Port of Beira is well placed to landlord), we’re currently engaged in the provide a cost effective and efficient import “Our plan is to construct a further feasibility studies for this project.” Since achieving political stability in and export route for future trade. 300 to 600 metres of quays with a draft the mid 1990s when the current spate of economic reform began, Mozambique For more information about of 12 to 13.5 metres for general cargo” has enjoyed continuous growth, strongly supported by the Port of Beira. And the Port of Beira visit: www.cornelder.co.mz
  • 7. Port of Beira Cornelder de Moçambique S.A.R.L. Porto da Beira, Largo dos C.F.M. P.O. Box 236 T + 258 2332 2734/5 www.cornelder.co.mz Produced by: www.bus-ex.com