Subcategoría: Aprendizaje de la noción del ciclo de vida de la planta

Beira gateway port

Over the years Beira has maintained its role as gateway port to the surrounding countries. The

concessioning of the Machipanda railway line and the Sena line to the Indian consortium Ricon has had a negative effect on the development and the capacity of the Beira corridor since very little investment and very little maintenance was carried out. As an effect the Sena line needed serious investment and rehabilitation in order to make it fit for the transportation of coal from Tete. The Machipanda line now is in the process of being rehabilitated and has very little capacity. The effect has been a significant increase in road transportation.

Zimbabwe and change in trading pattern

The decline of the economy and stability in Zimbabwe has led to a change in trading pattern. Where in the past Zimbabwe was the a base to source all sorts of materials and services from this has now changed to other countries, including Mozambique. Stocks are no longer kept in Zimbabwe but in other countries, including Mozambique. And the terms of sale have changed as well; payment on delivery. Which means in practise that trade is taking place in Beira. Another example is the fuel trade. The fuel pipeline to Zimbabwe is not functioning properly leading to road transport from Beira but also stock keeping in Beira. At present several international oil companies and oil traders are in the process of (re- ) investing in Zimbabwe in order to get a piece of the growing cake. In their plans Beira seems to play a critical role.

China and India determine demand

The development of the world economy over the last 10 years with China as the economy with the greatest demand for raw materials and energy followed by India has had its effect on Mozambique and the surrounding countries. Growing demand for raw materials and energy has led to investments in African economies and subsequent economic growth.

Effect of investment in entrance channel to the port

The investment in the entrance channel to the port has led to enforcement of the position of Beira as a gateway port. An immediate effect has been the increase in throughput in the port itself but secondary effects are very apparent as well, like investments in additional warehousing facilities by leading commodity warehousing companies, additional investments in trucks and transport facilities, the development of a SEZ by the Chinese. In order to maintain the growth pattern investments are necessary in order to increase the handling capacity of the terminals in the port otherwise this will become the bottleneck.

Future demand

Looking at the future the demand pattern is not likely to change. Most economic outlooks forecast continues growth in India and China where India actually has to make up for some years of slow growth. With the new prime minister Modi as the new head of state more effective economic policies may be expected potentially leading to additional demand.

Looking at GNI development in Mozambique and surrounding countries a healthy increase is foreseen which will lead to an increase in consumption and imports.

Changing structure of the economy

Looking at the structure of the Mozambican economy the structure is likely to change and in a way needs to change for political reasons such as employment and sharing of benefits/growth. The

traditional pattern of raw materials being exported will eventually change to exports of half products. The pattern of imports of consumption articles and machinery will eventually at least partly change to own production because the size of the market will justify investments in these sort of production facilities. Although government policies will (have to) play a role in order to support this change. Some examples of this change are the local production of fruit juice (Refriango, Angola and Sumol & Campal, Portugal), canning of pineapple and pineapple juice (First National Choice, SAR). Other examples are investments in cement production, production of sawn timber and furniture rather than exports of logs. Bottling and packing of food products rather than the importation of packed products. Mixing and production of animal fodder rather than the importation. Exports of filleted fish rather than entire fish. The planned establishment of a cigarette factory by Savanna Tobacco and a tobacco processing plant by Mozambican Leaf Tobacco should be seen in the same light. Other developing countries show similar patterns like Nigeria (Dangote Group) and Tanzania (Bakresha Group) who now have leading local companies taking care of the majority of production and distribution of basic food stuffs.

Other structural changes to be expected are intensified inter African trade. Supported by initiatives to ease transport and trade between countries (SADC) the trade is expected to intensify. Typical products to be traded between African countries are sugar, maize, cement, construction steel, fertilizer, hop and barley for beer, petroleum products, timber and wheat.

Principle drivers of demand

Looking at the future of Mozambique economy the driving factors are mineral resources, agriculture and gateway ports. The known mineral resources in the country seem to increase by the week. Almost every week a new discovery is published in the media. At present the main mineral areas are around Tete (coal and iron ore) and in the province of Cabo Delgado (graphite and natural gas). Key to

exploration of most of these minerals (bulky and relatively low value) are the cost of transportation and available infrastructure.

Potential position of Beira

Looking at the position of Beira; the Tete area is still some 300 km closer to Beira than it is to Nacala. Although Nacala port has the advantage of almost unlimited draft for vessels and will soon have a new railway line, the conditions in the present port still need to upgraded significantly.

Beira is in a strong position to benefit from growth and changes in Zimbabwe which are almost inevitable to take place.

With regard to agriculture in Mozambique the logging/forestry business seems strong, meat production is being invested in, sugar plantations are expanded. In the surrounding countries investments are taking place and output is increasing.

Considering the coal sector in Mozambique; world market prices are depressed at present but demand for coal is expected to continue to increase.

Prospecting for oil and gas off-shore is moving south from the Pemba area and may generate opportunities for Beira in the time to come.

 a 400 mln USD investment in the Machipanda road (Nat. Government and China’s Anhui Foreign Economic Construction Corp (AFECC) ),

 a new fertilizer terminal in the port USD 35 mln(Cornelder/CFM),

 Investments in Quay 11, estimate value 200 – 300 mln (Cornelder/CFM),

 expansion of the capacity of the Sena line, USD 224 mln (CFM),

 US$260 million of a total US$500 million to build infrastructure in the Manga-Mungassa Special Economic Zone (Chinese company Dingsheng International Investments),

 Investment in the rehabilitation of the fishing port of Beira, USD 120 mln, soft loan from China,

 Rehabilitation/rebuilt of Machipanda railway line is in planning process (CFM). But more investment would be required to capture the economic opportunities, like:

 Reliable power supply and additional power supply,

 Additional handling capacity in the port (oil, containers, general cargo, coal),

 Alleviation of infrastructure bottlenecks in and around the port, like a designated entrance road,

 Upgrading of roads in the city,

 Coastal protection for the city,

 Drainage of the city to be provided/improved, large parts of the industrial zone between the entrance to the port and Manga are flooding during rainy season,

 In the agricultural sector; road connections for input supply and transport of products,

 In the agricultural sector; reservoirs/dams which can provide irrigation water,

 Availability and upgrading of general facilities like healthcare, housing, public transport, etc.,

 Availability of skilled and qualified labour,

 Access to finance,

 Availability of suitable land for industrial, logistic and added value activities. On an institutional level a number of improvements would be necessary, like:

 Improvement of cooperation between City and Port,

 Improvement of cooperation between City and government in Maputo,

 The tax income of the city of Beira would need to be improved. Shortage of land

The shortage of suitable land in Beira is a recurring subject for all housing, port and industrial projects. There is plenty of land available in and around Beira but it is low laying, vulnerable to inundation and not connected to the existing utility and road networks.

Both the PMP and the BMP indicate and calculate a requirement for expansion. The Aurecon PMP largely concentrates on the requirements for expansion directly related to loading and unloading of vessels and does not specify requirements for logistics and added value areas. The PMP does however advise to move existing activities within the port area which are not port related to be moved outside the designated port area leading to additional demand for space in the city.

The BMP provides a proper framework for the future development of city and addresses both long term requirement for land for residential areas and industrial area.

Housing 2013 2035 2035

Growth % 2,25 4,25

Scenario low high

Population 443.369 827.000 1.422.000 Hectares 7.743 11.366 16.991 Industrial area 2013 2035 2035 Growth % 4 8

Scenario low high

Hectares 580 1.375 3.150 Port Area 2013 2035 2035 Growth % 4 8

Scenario low high

Hectares net 78 237 527 Hectares gross 442 575 1.270 Table 8: Requirement for land

From an economic perspective it is relevant to develop these areas in line with demand in order to invest efficiently. It also makes sense to approach these expansions in an integrated manner whereby all basic utilities are made available, sewage is connected, roads and railroad are connected all in line with an overall view about the future development of the city and port. An integrated approach will save cost and time and safeguard the interest of all involved.

Annex 1, summary of telephone interviews

About Beira

 Confirm gateway position Beira for earlier described hinterland.

 Beira port is working relatively well and Cornelder is relatively well responding.

 In season ( Aug – Jan, in particular Sep, Oct and Nov) port gets congested and needs to be avoided.

 Shortage of empty containers.

 No silos for cement import.

 Relatively small call size of container vessels limits import/export possibilities.

 Some investments in the port have been executed and managed poorly (warehouse in the port, enforcement of pavement) leading to losses.

 Capital Dredging in 2010 has led to investment in warehouses and depots.

 Beira should not turn into a coal port because it takes capacity away for handling of other general cargoes.

 Beira should be able to increase containers to 500 – 700,000 Teu, 5 – Mtpa coal and 5 – 8 Mtpa general cargo. But additional investments necessary to increase capacity and productivity.

 Investments to increase capacity are late, more growth could have been captured .

 Some companies already have land positions in foreseen new industrial zone, waiting for access road to open up the area and trigger investment.

 Mozambique/Beira is closed market to certain extend, small number of businessmen and politicians decide who can enter. If market would be free more investments could be attracted.

 In general investors are positive about Mozambique as compared to other African countries.

About Nacala

 Nacala port is still behind in terms of organisation and facilities.

 New Nacala port (Nacala Velha) is only for coal export and little benefit for other cargoes.

 New Nacala railline may create opportunities but with present low coal prices there will be a necessity to export as much coal as possible in order to keep the cost per ton low/competitive leaving little capacity for other cargoes.

 Rail rate for New Nacala line not yet known. Depending on the rail cost coal may shift to Nacala Port which has much better draft.

 At present coal business case is a disaster.