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Bigger ships possible after port expansion

14th March 2014

By: Donna Slater

Features Deputy Editor and Chief Photographer

  

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Following the upgrade, namely Phase 3.5, completed last year, Mozambique-based Terminal de Carvao da Matola (TCM) now has 25% additional capacity, from six-million tons yearly to 7.5-millions tons yearly, increasing the port’s potential to export magnetite, iron-ore and coal.

“The terminal can handle thermal coal, magnetite and iron-oxide exports,” says freight logistics and shipping services provider Grindrod ports and terminals CEO Dave Rennie, adding that the thermal coal is supplied from collieries in Mpumalanga, while the magnetite and iron oxide material comes from mines in Phalaborwa.

“Further, . . . there has been a shift in the cargo mix over the last 12 months,” he says, adding that magnetite exceeded coal as the primary commodityexported from the terminal during that time.

Rennie adds that, currently, only 2.5-million tons of thermal coal a year is contracted to leave the port, with the balance of the terminal’s capacity allocated to magnetite contracts.

He explains that the TCM provides an international export route for mines in the surrounding area and that, as export capacity demand continues to increase, the port will serve additional hematite, iron-ore, magnetite and thermal coal clients in Maputo’s hinterland.

“Geographically, the terminal is ideally situated to export coal from collieries in Witbank and Botswana, as well as iron-ore and magnetite from South Africa and Swaziland.”

Increasing Capacity

Grindrod aims to incrementally increase exports from the TCM by an additional 4.5- million tons a year to meet a yearly target of 12-million tons by 2016. This phase, namely the TCM Phase 4A brownfield development, will include upgrading and modernising the existing terminal through the replacement and upgrade of bulk materials handling equipment and conveyor systems, as well as deepening the existing berth at the TCM by means of dredging and constructing a new berth.

Rennie tells Mining Weekly that dredging the existing berth will allow for fully laden Panamax-sized vessels – each averaging 70 000 t – to dock at the existing TCM berth and the new quay, which is due for completion in 2015.

Rennie tells Mining Weekly that the current programme to refurbish or replace handling equipment will be concluded at the end of Phase 4A.

Expansion Phase 4B is currently at the advanced feasibility-study stage, which will increase the terminal capacity to more than 20- million tons.

The yearly volume of coal expected to pass through the terminal depends on coal export markets and rail delivery systems, says Rennie. “Commodity markets will determine the commodity mix in the terminal.” While the Richards Bay Coal Terminal is the main outlet for South African coal producers, some collieries are closer to the TCM. “Grindrod will continue to serve those mines from the TCM,” says Rennie.

Meanwhile, Grindrod also operates Grindrod Mozambique Limitada, located in the main port of Maputo, which has a throughput capacity of four-million tons a year. The facility exports sized coal, destined for the Turkish domestic market, and iron oxide and magnetite destined for the Far East.

“We continue to work very closely with South African State rail company Transnet Freight Rail and the exporters to ensure that demand and supply are aligned and to create export capacity for the established and junior coal mining community of Southern Africa,” he concludes.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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