The Maputo Corridor Case Study of Succcess - PMAESA

PMAESA ANNUAL GENERAL MEETING
& PORT CONFERENCE
THE MAPUTO CORRIDOR
CASE STUDY OF SUCCESS
10 – 14 DECEMBER 2007–BRENDA HORNE – CEO of MCLI

1. Corridor Description
Purpose of My Presentation
2. Vision & Strategy - Key Goals & Objectives
3. Institutional Structures
4. Key Infrastructure Elements & Impact Performance Of
The Infrastructure Improvements
5. Summary Major Sector Investments In The MDC
6. Impact of Infrastructure Improvements
Summary - Maputo Corridor 10 Years Later
7. Lessons Learned

1. Maputo Corridor Description
RE-ESTABLISHING PROVED TRANSPORTATION ROUTE TO
INTERNATIONAL MARKETS SA; ZIMBABWE; SWAZILAND, BOTSWANA
THROUGH MOZAMBIQUE
SOUTH AFRICA
Steelpoort
Tzaneen
Palabora
MAPUTO
CORRIODR
Johannesburg
Middleburg
Secunda
Belfast
Ermelo
Nelspruit
Piggs
Peak
Komati
poort
SWAZI-
LAND
Maputo

2. MDC - Vision & Strategy & Objectives
As first of the SA SDI’s – combination of public private finance to leverage capital
improvements to create an integrated transport network allowing for competitive
transportation of imports and exports along the corridor
– access to domestic and international markets
The Maputo Development Corridor - four key objectives:
• To rehabilitate the core infrastructure along the Corridor with minimum impact on the
fiscus (road, rail, port, border post and communication)
• To maximise investment in both the inherent potential of the Corridor area, and
added opportunities which infrastructure rehabilitation will create
• To ensure sustainability by developing policy, strategies and framework that
encompass a holistic, participatory and integrated approach to development
• To ensure that the development impact of this investment is maximised, particularly
to disadvantaged communities by changing the ownership base

Strategic Benefits
• The stimulation of trade via competent infrastructure
• The opening up of South African markets to Mozambican producers and
access to global markets through the development of Maputo Port
• Employment creation through increased economic activity in Maputo and
along the Corridor, with the ability to shift to higher value-added industry
sectors
• Increased access to international tourism
• Improved income generation through the encouragement of private
investment
• Saving of public sector financial resources through the use of private
sector investment in infrastructure development

OVERVIEW - reduce the cost of doing business – distance is cost
DISTANCE IS COST –
COMPARATIVE
DISTANCES – ROAD
AND RAIL
MAPUTO CORRIDOR
ALL THE POTENTIAL
TO BE AN ECONOMIC
TRANSPORT
CORRIDOR

Economic Growth
• South African business expectations for growth in key
areas such as turnover, profitability, efficiencies and
employment are higher than ever before. (Grant
Thompson Consultants).
• The South African economy grew with 5% during 2006.
This is only 0, 1% lower than 2005. Maria Fassler of JP
Morgan Chase reports a continuous growth over the past
33 Quarters (8,25 years)
• According to the Road Freight Association approximately
1.2 billion ton cargo is moved per year (2002 statistics).
If we apply the growth factor to cargo moved, per year
60 million ton more has to be moved.
SOURCE SASC - 2007

• Africa has transport corridor
network of 2.06 million km,
facilitating her 8.5% of the 7.11
billion tons of the global cargo
traffic. This represent 0.61
billion tons, of which Road
represent 96% and Rail - 4%
COUNTRY
Total cargo traffic
PMAESA ports
TOTAL PORT THROUGHPUT PMAESA MEMBER PORTS (DWT)
REPRESENTED BY
• PMAESA ports handled 0.23 billion
tons representing 38.0% share of African
traffic in the global market
•(PMEASA 2007)
TOTAL
TONNAGE
TOTAL
TONNAGE
2005
2006
BURUNDI
PORT OF BUJUMBURA
204,929
184,063
DJIBOUTI
PAID
5,434,948
5,480,415
ERITREA
MTC MARITIME DEPT
571,915
635,461
KENYA
KPA
13,280,747
14,402,018
MAURITIUS
MPA
5,602,466
5,686,342
MOZAMBIQUE
CFM
9,982,300
10,598,200
REUNION
PORT REUNION
3,759,488
3,947,463
RWANDA
MAGERWA
523,800
582,000
SEYCHELLES
MTC PORT&MARINE DIV
755,055
755,560
SOUTH AFRICA
NPA
173,555,069
179,983,594
TANZANIA
TPA
6,285,060
6,330,404
TOTAL CARGO TRAFFIC
219,955,777
228,585,560
NOTE: * rep. Projected throughput

SA Exports of goods & services Constant 1995 prices.
Seasonally adjusted at annual rate
Source – MEGA 2007 (DTI)

SA Imports of goods & services Constant 1995 prices.
Seasonally adjusted at annual rate (Forecast)
Source – MEGA 2007 (DTI)

3. Institutional structure
The formation & structure of MCLI
MCLI – a multi-lateral; multi-stakeholder institutional framework to
integrate; coordinate; communicate and facilitate on the Maputo Corridor
• MCLI was incorporated as a SECT. 21, (not for profit) organisation, during March 2004 as a
membership organization, with members drawn from freight logistics stakeholders of both South
Africa, Mozambique and Swaziland, focused on the promotion and further development of the
Maputo Corridor, as a contribution to the aims and objectives of the SDI - Maputo Development
Corridor – launched in 1996 –
• Founders meeting 16 October 2003 – equally responsible for funding – target was 10 (6.8&8.4)
• MCLI now has 118 Members (Foundation, Organised Business; Cooperative)
• MCLI promotes greater utilization of the Corridor by current and future investors and users to
ensure that the remaining constraints are resolved and the Maputo Corridor becomes
“the first choice for the Corridor region’s stakeholders”
Freight Logistics creates an enabling
environment for trade and investment!
SA, Mozambique and Swaziland Ministries of transport

VISION
WHAT IS THE MCLI
To become the leading corridor stakeholders’ coordinator, contributing to the aims
and objectives of the Maputo Development Corridor. This will be achieved by working
towards a Logistics Corridor based on excellence – a cost-effective, continuous,
reliable logistics route with positive returns for all stakeholders.
MISSION
To support the development of the Maputo Corridor into a sustainable, highly efficient
transportation route, creating an increasingly favorable climate for investment and
new opportunities for communities along the length and breadth of the Corridor.
STRATEGIC OBJECTIVES OF MCLI
• To coordinate the views of service providers and users of the Corridor to engage with
public sector to promote development and change, making the Maputo Development
Corridor the first choice for the region’s importers and exporters alike.
• To inform the market about the Corridor and to market the strategic
benefits and opportunities offered by the Corridor
GOAL
“Maputo Corridor the first choice for the Corridor Region’s Stakeholders”

STRATEGIC OBJECTIVES – Climate survey
Coordinate
views
Engaging with
Public Sector
Promoting
MDC
Positively
Positive
90.00%
84.62%
90.98%
Ave
6.92%
10.00%
3.76%
Negative
3.08%
5.38%
5.26%

MCLI ACTIVITIES – TRADE FACILITATION ON TRANSPORT CORRIDOR
• Coordinating initiatives and engaging the relevant authorities to
contribute to the planning of service and infrastructure
improvements.
• Organizing events, fact-finding missions, forums and meetings.
• Communicating progress and developments through electronic
newsletters and the media.
• Promoting positive attitudes and perceptions towards the
Maputo Development Corridor and logistical benefits offered by
the Corridor.

EVALUATION OF MCLI ACTIVITIES COMPARED TO
EXPECTATIONS – Climate Survey
Events,
forums,
meetings
Communicating
Progress
Informing
market of
opportunities
Connecting
Stakeholders
Dev of
Website
Positive
90.00%
86.61%
90.55%
85.04%
87.07%
Ave
8.46%
10.24%
6.30%
11.02%
11.21%
Negative
1.54%
3.15%
3.15%
3.94%
1.72%

EVALUATION ON THE EFFECTIVENESS OF
MCLI IN VIEW OF EXPECTATIONS
• 75 positive comments ranging from general to
communication; coordination; event management;
networking and promotion is a clear indication of
the perception that MCLI is an effective
organization, playing a crucial role in coordination
of stakeholders, communication and trade
facilitation on the Maputo Corridor
– OVERALL RATING OF GOOD TO EXCELLENT 86.83%
– OVERALL RATING OF AVERAGE 8.76%
– OVERALL RATING OF FAIR TO POOR 4.40%
Considering that only 56 of the 142 respondents were from MCLI member organizations
and the balance from potential members, who may not be fully up to date with the progress
and performance of MCLI, I believe that the above results can be viewed as an indication
that we are on the right track and generally meet the expectations of both members as well as non-members.

EVALUATION OF MCLI’S VALUE TO OWN
ORGANISATION AND CONTRIBUTION TO
ECONOMIC DEVELOPMENT IN THE REGION
Direct Benefit
Indirect Benefit
Contribution to
Economic Dev of
Region
Positive
81.45%
76.86%
92.00%
Ave
10.48%
12.40%
5.60%
Negative
8.06%
10.74%
2.40%

4. The Maputo Development Corridor
– Key Events & Milestones
Coal-based Power Station
2 transmission lines to
Matola completed
MINTEK –NEPAD 2007
Joburg-Maputo Highway
PPP- BOT completed
Port of Matola/Maputo
Upgrades, PPP
GAUTENG
MAPUTO
Joburg to Maputo
Railway line: Upgrade
Liquid Fuels & Petrochemicals:
Sasol
Pande-Secunda Gas line.
PPP Sasol completed
Al smelter 500ktpa
BHPB completed

82 km
N4 TOLL ROUTE MAP
340 km 80 km
SOUTH AFRICA
Lydenburg
Sabie
Kruger
National
Park
PRETORIA
N4
N12
Witbank
Middelburg
Ogies
Hendrina
N11
Belfast
N4
Wonderfontein
White River
N4
Waterval-
Boven N4
Machadodorp
Badplaas
Carolina
Nelspruit
Barberton
Nkomazi
N4
Kaapmuiden
Komatipoort
Namaacha
MOZAMBIQUE
Moamba
N17
N17
MBABANE
Boane
Bethal
JOHANNESBURG
N17
Ermelo
Manzini
SWAZILAND
Diamond Hill Plaza
Middelburg Plaza Machado Plaza Nkomazi Plaza Moamba Plaza Maputo Plaza

REHABILITATION OF INFRASTRUCTURE
N4 -ROAD
• 1997 a 30 year concession granted to TRAC
– “Double” PPP (Two governments involved)
– PPP’s used to contribute to infrastructure using private
funding and to relieve the burden on tax-based
revenues.
• TRAC has obligations to:
– Finance
– Design
– Construct
– Maintain
• Status
– Road from Ressano Garcia border to Maputo is new.
– Traveling time greatly reduced.
– TRAC obliged to continuously maintain the road.
– Spent R2 Billion on the road to date
– Planned to spend at least another R3 Billion over next
25years
– Continuous adding of lanes & resurfacing
• The project has been successful in all aspects,
namely:
• As a constructed road
• Involvement in Social Development in both RSA
and Mozambique
• In stimulating and being a catalyst for economic
development
• Volume increase of 5-7% p.a. - freight – 10%

During 1997 TRAC was awarded a 30-year Concession Contract to build, operate,
maintain and expand the N4 toll route (502KM SA+MOZ), thereafter return the
upgraded road to the respective States.
7%
Taxes
16%
Rehabilitation
Equity returns
8%
Direct operating
cost
8%
9%
5%
Maintenance
Company
overheads
The Toll Tariffs were set at the
outset based on the tender, and
further detailed discussion wit the
Road Agency.
The tariffs are adjusted by CPI in
March of each year
47%
Debt service
Application of Toll Revenue

• BORDER POST LEBOMBO/RESSANO GARCIA
ROAD TRAFFIC ON MAPUTO CORRIDOR ON N4 - PASSENGERS
Easter 2007 > Easter 2005 +130% = 166K to 382K
December 2006 > 466K December 2006 =330K to 466K
113,500 on the 23rd of December 2006 (56,K previous record).
Home Affairs - 80% increase in passengers since April 2005 when visas
were abolished
All this via the N4 ! - 23 December 06 (from highest to lowest):
Middleburg Toll Plaza - 30 389 - Nkomazi Toll Plaza – 14 717
ROAD TRAFFIC ON MAPUTO CORRIDOR ON N4 - FREIGHT
• 1 September 2006– commercial cargo clearing hours extended to 22:00
almost zero to 6-700K tonne pa since mid-2002. The traffic is largely SA
exports.
•13 August 2007 – hours extended to midnight (18hours)
24hr border opening is essential in order to enable road transport to
complete the round-trip between JHB-Maputo within 24hrs.
LEBOMBO RESANNO GARCIA JOINT ONE STOP BORDER
•28 June 2006 - bi-lateral meeting between the Presidents of SA and
Mozambique – announced commitment for “one-stop-border”
•DFID works with SARS & MOZRS – SA – BCOCC
•R600Million Rand
•23 May 2007 – MCLI AGM – Joint presentation of SA & Mozambique
Revenue Services
3 Location One stop border post – Completed 2009
•Commercial cargo clearing – Mozambique KM4
•Passenger clearing – re-build -current border post
•Rail

RAIL ON THE MAPUTO CORRIDOR
•2006 - , 1.7m tonne transit cargo from SA, i.e..
4.5-5 trains per 24 hrs
•line has design capacity for 9m tpa, i.e.. 16-18
trains per 24hrs.
•CFM upgrade programme on the Moz section
of the line (92kms from the border to the port)
•20 tonne axle loads and throughput of approx
13m tonne pa (2010-11).
Now excellent cooperation between CFM and
Spoornet
• Rehabilitation to be completed Dec 2007
CFM rebuilds rolling stock ahead of growing
demand for railway transport
from the region to the port of Maputo.
•150 wagons rehabilitated in-house
•820 will be rebuilt by a specialized foreign
contractor to be selected through a public tender
- US$ 30 M.
•Rehabilitate more than fifty locomotives
US$ 30 M

www.portmaputo.com

SHARE HOLDING
Private Sector 51%
• Mercy Docks 12.5%
•Liscont – 12.5%
•Grindrod – 25%
•Private Mozambique 1%
Public Sector 49%
•CFM 33%
•Government 16%
… MPDC
Always at Your Service
Always at Your Service
www.portmaputo.com

NEAREST NEAREST
PORT PORT
TO
SOUTH SOUTH ASIA ASIA
&
CHINA CHINA

MAPUTO CARGO TERMINALS
EXISTING TERMINALS
MIPS CONTAINER TERMINAL (DP WORLD)
SUGAR TERMINAL (SA: MOZAMBIQUE, SWAZI &
ZIMBABWE)
CITRUS TERMINAL (CAPESPAN)
FERRO ALLOYS
PLANNED NEW TERMINALS
FOREST PRODUCTS, GRANITE, POS PASSENGER
METALS
CAR

MATOLA BULK TERMINALS
EXISTING TERMINALS
BULK COAL TERMINAL (API GROUP)
ALUMINIUM TERMINAL (BHP BILLITON)
BULK GRAIN TERMINAL (STEMA)
OIL TERMINAL (PETROMOC)

LOURENÇO O MARQUES 1971
CONSTRUCTION OF THE CONTAINER TERMINAL
(32 SHIPS IN THE PORT)

PORT OF MAPUTO TRANSIT CARGO
7,000,000
6,000,000
5,000,000
4,000,000
THROUGH P UT TONN ES
3,000,000
TOTAL TRANSIT
TOTAL TRAFFIC
MPDC – PORT OF MAPUTO
2,000,000
1,000,000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
TOTAL TRANSIT 2,016,400 2,052,000 2,054,100 1,663,200 1,923,600 1,804,400 2,062,800 2,309,935 2,833,265 2,710,522
TOTAL TRAFFIC 3,109,000 3,016,400 3,101,600 3,035,900 4,001,600 4,423,600 5,036,000 5,554,036 6,381,722 6,608,655
YEAR S
PORT POTENTIAL 11 TO 20 MILLION TONS

MAPUTO 2006 - JAPANESE PANAMAX VESSEL IN THE POLANA CHANNEL

US$12m
PORT DREDGING
AND
MARINE SERVICES

NEW EQUIPMENT WORTH US$18m
DELIVERED SINCE MID-JULY 2003

MAPUTO 2006 - NEW HIGH SECURITY PORT ENTRANCE FULLY OPERATIONAL

MAPUTO 2006 - INTERNAL RAIL NETWORK UPGRADED TO SOUTH AFRICA STANDARD

ISPS COMPLIANT
ISPS COMPLIANT
MAPUTO MAPUTO
IS IS

MAPUTO 2007 - ‘CRYSTAL SERENITY’ LARGEST VESSEL EVER TO VISIT PORT MAPUTO

2007 - INCREASING CRUISE CALLS, KRUGER PARK IS 100km FROM MAPUTO
2007 - INCREASING CRUISE CALLS, KRUGER PARK IS 100km FROM MAPUTO

MAPUTO 2005 - LARGE CARGO VESSEL UNLOADING BAGGED CEREALS AT BERTH 5

MAPUTO 2005 - REFURBISHED CENTRAL INTERMODAL ZONE

MAPUTO 2004 - FIRST VESSEL LOADING AT THE NEW EXPORT FERRO CHROME TERMINAL

MAPUTO 2007 – PHASE 2 EXPORT FERRO TERMINAL UNDER CONSTRUCTION

MAPUTO 2006 – 55,000 TONNE BULK SUGAR TERMINAL EXTENSION OPENED

MAPUTO 2006 – 10,000m2 BAGGED SUGAR TERMINAL UNDER CONSTRUCTION

MATOLA 2007 - MOZAL ALUMINIUM TERMINAL HANDLING OVER 2 MILLION TONNE PER ANNUM

COAL TERMINAL AT MATOLA DEEP WATER PORT

MATOLA 2006 – GRINDROD-API ANNOUNCE US$25m MODERNISATION AND EXPANSION PROJECT

MATOLA 2004 – PREPARING TO SAIL WITH 45,000 TONNE FROM THE EXPORT COAL TERMINAL

MAPUTO 2006 - CAR CARRIERS ARE REGULAR VISITORS TO THE PORT

Grindrod Terminals - Maputo Car Terminal

Grindrod Terminals - Maputo Car Terminal

Grindrod Terminals - Maputo Car Terminal

MAPUTO 2007 – BULK LIQUIDS TERMINAL UNDER CONSTRUCTION

PORT MAPUTO 2006 - WORLD CLASS MARINE SERVICES

BREAK-BULK BULK SERVICES
GEARBULK
MACS LINE
GULF AFRICA LINE (GAL)
MESSINA LINE
MUR
IVS LAURITZEN
MPDC SHIPPING AVAILABILITY 2007
NORTH WEST EUROPE
NORTH WEST EUROPE
US GULF
EAST AFRICA, RED SEA & MEDITERRANEAN
MEDITERRANEAN, INDIA & FAR EAST
FAR EAST & NORTH EUROPE
CONTAINER LINES
OCEAN AFRICA
CGM-CMA CMA DELMAS
MSC
GLOBAL (GCL)
MACS
MESSINA LINE
MOL
SOUTHERN AFRICA COASTAL
EAST AFRICA, SEYCHELLES, INDIA
EAST AFRICA, INDIAN OCEAN & SOUTH ASIA
EAST AFRICA, GULF & SOUTH ASIA
NORTH WEST EUROPE
EAST AFRICA, RED SEA & MEDITERRANEAN
FAR EAST
WEEKLY
14 DAYS
10 DAYS
10 DAYS
MONTHLY
14 DAYS
8 DAYS

CONTAINER TERMINAL

COMMENCEMENT OF OPERATIONS
MIPS took over the lease and the management of the
Maputo Container Terminal on the 9 th March 1996 initially
for a period of 10 years to 2006; In 2003 Management
successfully negotiated an additional 10 year extension, up
to 2013.
SHAREHOLDING
DP World (60%)
Mozambique Ports & Railways (CFM) (40%)

MAPUTO 2005 - REFURBISHED 35 TONNE CONTAINER GANTRY AT THE MIPS TERMINAL

INVESTMENT
MIPS has already invested USD 14.4 Million in
the rehabilitation of:
Infrastructures
300m of quay line and Yard
Mobile equipment
Security
Computerized container control system

CONTAINER TERMINAL

70000
60000
50000
Container Terminal
Throughputs in TEUS – 1996 - 2006
40000
30000
20000
Total
Local
Transit
10000
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total '8865 '13508 '20439 '25875 '31729 '32425 '35010 '39486 '44349 '54088 '62516
Local 8865 13508 20439 25875 31729 27460 30199 33485 38121 45140 52506
Transit 4965 4811 5641 6228 8948 9914
16% Increase over 2005

Maputo’s proximity to the industrial, mining and agricultural
heartland of South Africa offers it a potential market of 220K
TEU/Year
SOUTH AFRICA
There are potentially 140K
TEU Imports that MIPS
could attract from the
Gauteng Province
Steelpoort
Tzaneen
Palabora
There is an additional 80K
TEU Exports that MIPS
could attract from
Mpumalanga and Limpopo
Provinces and Swaziland
Johannesburg
Middleburg
Secunda
Belfast
Ermelo
Nelspruit
Piggs
Peak
Komati
poort
SWAZI-
LAND
Maputo
Member of
DP WORLD
Group

D E S C R IP T IO N Y T D 2 0 0 6 Y T D 2 0 0 7 D iff ∆ %
E X P O R T
R e c e iv e d b y R a il
- C o n ta in e rs 2 6 4 4 % 2 ,5 5 5 2 9 % 2 ,2 9 1 8 6 8 %
- B re a k B u lk 9 1 5 1 3 % 1 ,3 0 9 1 5 % 3 9 4 4 3 %
S u b -T o ta l 1 ,1 7 9 1 6 % 3 ,8 6 4 4 3 % 2 ,6 8 5 2 2 8 %
R e c e iv e d b y R o a d
- C o n ta in e rs 2 9 0 % 4 0 % -2 5 -8 6 %
- B re a k B u lk 6 ,0 1 1 8 3 % 5 ,0 7 8 5 7 % -9 3 3 -1 6 %
S u b -T o ta l 6 ,0 4 0 8 4 % 5 ,0 8 2 5 7 % -9 5 8 -1 6 %
T o ta l E x p o rt 7 ,2 1 9 1 0 0 % 8 ,9 4 6 1 0 0 % 1 ,7 2 7 2 4 %
IM P O R T
D e liv e r e d b y R a il
- C o n ta in e rs 0 0
- B re a k B u lk 0 0
S u b -T o ta l 0 0 0 0
D e liv e r e d b y R o a d
- C o n ta in e rs 0 0
- B re a k B u lk 0 0
S u b -T o ta l 0 0 0 0
T o ta l Im p o rt 0 0 0 0
This year MIPS has
seen 25% increase in total volumes, 20% in transit cargo and
868% increase in transit cargo received by rail in 2007,
compared to 2006
The increased efficiency
of Maputo rail corridors
has improved MIPS
competitiveness for
shippers
Member of
DP WORLD
Group

TERMINAL CAPACITY
Present Capacity
Area
100.000 TEUS
8 Hectars
Ground Slots 1.500
Reefer Points
Quay lenght
116 plugs
300m
Depth alongside 11,5m

MAPUTO 2004 - NEW CONTAINER HANDLING EQUIPMENT AT THE MIPS TERMINAL

CONTAINER TERMINAL

The Fresh Produce Terminal–FPT capacity–100,000tpa
CAPESPAN
• Current Warehouse 5500 slots/pallet pa
• Plus new terminal to be built
• Operational 2008 – handling - frozen/fresh
• Capacity 5000 slots/pallets
• 2009 -Current then modified – Steri-market
• Current annual capacity 100kt
• Capacity over time 260ktpa

MAPUTO 2005 - LARGE REFRIGERATED VESSEL WAITING TO LOAD PALLETS OF CITRUS

ANOTHER NEW CITRUS WAREHOUSE IN MAPUTO
• R30 million - IDC & Port Elizabeth Cold Store & Fidelity Investments.
• 70K tons of citrus & 10K tons of frozen juice – save SA Farmers R15M pa - inland logistics costs
• 20 % of the potential export need of the Lowveld, Limpopo, Swaziland Citrus.
• If all the product could flow through the natural harbor for this area then the saving to
Agriculture could be as high as R80 million per annum.
• Dedicated container loading capacity & steri capacity markets like China, Korea and Taiwan.
• 500m from the quayside - handle 3200 pallets at a time.
• Capacity to store 4800 drums of juice concentrate.
• Employ 60 people, 95% of which will be Mozambicans.
• Construction start 2007 - ready for the 2008 season.

SHIP TYPES BY DWT AND DRAFT

GROWTH IN VESSEL CAPACITY
DOBELA TARGET
MAPUTO TARGET

N4 Toll Road
Port of
Maputo
& Terminals
2007 investment plans
Rail
Energy
Major
Infrastructure
/Plant Investment
Values
US$ 250 MIL
R2 B spent-
25yrs
US$ 46 MIL
of US$ 70 MIL
US$ 15 MIL Terminals
Further $273M
US$ 12 MIL Initial
CFM > 50 Locos $30m
Rolling Stock 970 wagons
$30M
US$ 100 Mil
R3B next
Contr
act
SMM
E
702/160
50pa
Contract
Value
SAR
SAR 304 M
SAR >R20Mpa
5.
Summary Major
Projects
MDC
Jobs
Perm, Temp
Casual
6220
1,000 Perm Jobs
71% woman, 84%
Black
2,000 & indirect
(1 job impacts 8
people)
450–$1.755M PA
1,800 indirect
$4.680M PA
People
Trained
20,260
450 full
time staff
trained in
ops &
safety/sec
IMPACT OF MDC – TO DATE > $5B - INVESTMENTS
Mozal
US$ 2 BIL
200
USD 100 M
9,000 & 1,000 perm
Temane Gas pipeline to
SA SASOL 1,000KM
(2007 double capacity
=$250M)
US$ 1 BIL
$498M royalties & taxes
over 25 year
MORE THAN $3 BIN
Double capacity $250M
3,000 during
construction 1,000
Moz’s
$3M
training
budget

MAPUTO PORT CONCESSIONAIRE – INVESTED $50 OF $70M
STRATEGY FOR MAPUTO
& DOBELA PORT
12 MAJOR PORT
DEVELOPMENT
PROJECTS -
$273MILLION
1. EXPANSION OF COAL/MAGNETITE
TERMINAL
2. BUILD NEW CAR TERMINAL
3. NEW FRESH PRODUCE
WAREHOUSE
4. TRANSIT SHED T2 (BAGGED RICE
AND STEEL)
5. TRANSIT SHED T3 (MULTI-
PURPOSE BULK TERMINAL)
6. TRANSIT SHED T4 (FERTILIZER
TERMINAL)
7. BULK LIQUIDS TERMINAL
8. GRANITE TERMINAL
9. EXTENTION OF THE MPT CITRUS
TERMINAL
10. EXTENTION OF THE STAM BULK
SUGAR TERMINAL
11. UPGRADE AND IMPROVE
MAPUTO PORT ACCESS TO POST
PANAMAX PLUS TYPE OF
VESSELS
12. EXPANSION OF CONTAINER
TERMINAL
ECONOMIC IMPACT
•11,45m TONS
ADDITIONAL RAIL
FREIGHT
•56,700 ADDITIONAL
ROAD TRIPS PA
•$9.4M ADDITIONAL
LIGHT DUES PA
•$10M RECLAIMED
PORT LAND
•$11M ADDITIONAL
VARIABLE
CONCESSION FEE
TO STATE PA
•450 NEW PORT
JOBS – $1.755M PA
•1,800 INDIRECT
JOBS - $4.680M PA
ALL AFFECTED BY
MANDATED
INSPECTION FEE
BUILD NEW CRUDE OIL TERMINAL AT PONTA DOBELA
BUILD NEW OIL PIPE LINE DOBELA TO MATOLA REFINERY
BUILD NEW IRON ORE AND HEAVY SANDS TERMINAL

Mozambique: Economic Performance
Projects Approved for the Province of Maputo (1990 – 2006)
Sector
No of Projects
Investment
US$(000)
Jobs
Agriculture
143
627 005
19 760
Banking/ Finance
43
409 517
650
Construction
111
438 999
14 133
Industrial
388
4 495 523
26 955
Mining/ Minerals
12
204 792
1 324
Transport
144
1 723 886
9 170
Tourism
83
741 494
8 180
Other
285
732 856
22 540
TOTAL
1209
9 374 072
102 712
Note: Not all approved projects are necessarily implemented

(Ti/V) Magnetite
Sep. & conc. plant
• magnetite
• ilmenite
MDC phase II:
Maputo Metallurgical Complex
High Cu Magnetite
dumps > 300 MT
Magnetite (>Cu)
dump upgrading
plant
Rail
Possible Ti/Fe
From Chibuto
Slurry pipeline
Elec transmission
Gas Connector
Pande Gas Pipeline
MINTEK –NEPAD 2007
Fe pelletising plant
Other Potential:
Ilmenite smelter Ti/Fe MMC:
Fertiliser plant N/P
Chlor-alkali plant Na/Cl
Downstream chemicals
& agriculture
Iron (DRI) &
Steel Plant
Downstream
Manufacturing
Fe exports
Railway
Major Road
Duvha
Power Lines
Pande Gas
Pipeline

Mozambique to South Africa Petroleum
Product Pipeline
• OBJECTIVE:
Project Objective
• Supply the RSA inland with competitively priced imported petroleum products
by end 2009 via;
• 440 km - 16 inch - pipeline from Matola in Maputo Mozambique to
Kendal in RSA.
• Maputo port - upgraded for larger vessels.
• Receiving depot at Matola.
• Distribution depot in Nelspruit.
• Collection tanks at Kendal for injection into Transnet Pipelines network
to supply Pretoria and Witbank area.
• Possible extension of network to Kemptonpark

Maputo Corridor Water Scheme
Value of the Investment ?
• Thermal desalination Plant R 1.5 billion
• 210 km pipeline R 1.0 billion
• Kwena transfer scheme R 80 million
• Power generation R 1.5 billion
• Total: R 4.8 billion / U$ 800 million
Steelpoort Mines
Der Brochen Dam
Off-take :
• Komatipoort
• Malelane
• Hectorspruit
• Matsulu
• Kanyamazane
• Others
Maputo Water 50Ml/day
Transfer 100Ml/day
Nelspruit
150Ml/day
210km pipeline
Distribution
Fresh
water
Desalt
Brine
SEA
Off-gas Heat
Kwena Dam
Trading of water
Reduced flow by 100Ml/day
National Grid - Electricity
Mozambique
South Africa
Power
Generation
Natural Gas
50Ml/day extra free flow
Municipalities: Purified effluent back into
the river as additional base flow
Additional flow for
Mozambique
South Africa
Crocodile River
Mozambique

6. Impact of Infrastructure Improvements
Summary - Maputo Corridor 10 Years Later
• 24 Hour Joint One Stop Border post – In Progress
• N4 completed – increased road safety-5%pa traffic growth rate – Freight vehicles = 10%
• Harbour concessions in place & successfully managed by private sector
• Increased traffic – Port & Terminals – 3Mt in 1996 vs 6.6Mt 2006)
• Increased Shipping Services
• Comparative Freight and Travel Times and Cost
• Cross Border People Flow (365K in 1993 vs 3,081K in 2006)
• Cross border Road Freight Growth (29Kt in 1997 s 1.2Mt in 2006)
• Cross border Rail Freight Growth (800Kt in 1995 vs 2.5Mt in 2006)
• Increase in tourism & trade (SA/MOZAMBIQUE)
• Further investment in Port & terminals – US273M
• Petro-Pipeline
• Maputo Corridor Water Project
• Maputo Metallurgical Complex

6. Lessons Learned
A number of important generic lessons of experience can be derived from the MDC and
from the South and southern African SDI experience8.
Socio-economic context
• Socio-political stability is a vital condition for broad-based investor mobilisation.
• An SDI/Development Corridor has to be selected on the basis of very strong inherent and under-utilised
development potential – confirmed business case.
Institutional and capacity building issues
• Political commitment and active support from the relevant leadership is vital.
• Establishment of a medium to long term flexible, variable focus, multi-lateral and multi-stakeholder
institutional structure is important.
• Active support and involvement of the local, regional and international private sector investors is essential
to success.
• The establishment of Small and Medium Scale Enterprises requires specific interventions, if they are to be
established in the short term.
• Countries should develop their own local technical capacity to undertake SDI type initiatives.

6. Lessons Learned
Development planning and programming issues
• Experience suggests that it is easier to get countries to agree on a few specific collaboration projects than
on multiple trans boundary development programmes.
• Success in an SDI is dependent on identifying an integrated set of economic and infrastructure projects
rather than single/disjointed projects.
• Investment projects must be properly packaged for investors.
• High profile, world class investors are vital to generating further ‘spin off’ investment.
Development planning and programming issues continued
• The focused and high speed development planning and decision-making approach embodied in an SDI
approach cannot replace the need for other national, provincial and/or local development planning
activities.
• It is important to secure financial and technical support on a multi-year basis, to underpin the project
identification, packaging and investor mobilisation processes.
• It is important to design and implement proper monitoring/tracking systems as a key instrument for
managing the development process.
• Practice indicates that SDI type interventions are generally multi-year rather than single year interventions.

Trade facilitation on development and
transport corridors through a collective
multi-lateral; multi stakeholders
(private/public) platforms such as MCLI, is
vital to ensure effective integration,
coordination; harmonization and
communication.

ACKNOWLEDGEMENTS:
DTI; PMAESA; MPDC; MIPS; CFM; PETROLINE; TRAC;
MINTEK; SWEETWATER
www.mcli.co.za
brenda.horne@mcli.co.za
Tel +27828022338