16 May 2017 SADC / Mozambique

Vale Inaugurates The Nacala Corridor In Southeast Africa

Vale Inaugurates The Nacala Corridor In Southeast Africa

Vale CEO Murilo Ferreira and representatives of the governments of Mozambique, Malawi, Brazil and Japan inaugurated the Nacala Corridor on May 12.  The implementation of this logistics corridor is part of the commitments signed by the governments of Mozambique and Malawi, Vale and Mitsui for the socioeconomic development of the zone.

The implementation of the Nacala Corridor is an investment made by Vale and by the Mozambican state company CFM (Portos e Caminhos de Ferro de Moçambique) to build and rehabilitate a 912-km railway connecting the Moatize Coal Mine, in Tete, to Nacala-a-Velha, in the province of Nampula, crossing the Malawi Republic. The Nacala Corridor consists of rail and port infrastructure, including the rehabilitation of existing railways in Mozambique and Malawi and a new coal port terminal in Mozambique.

The terminal has a storage yard of, approximately, 1 million tonnes of coal and takes advantage of the deep bay that exists there to receive about 150 large ships per year. The project started in 2012 and marks the company's largest volume of investments outside of the home country, totalling US$ 4.4 billion.

With the implementation of the Nacala Corridor, Vale could increase coal production to up to 18 million tonnes per year. This volume is four times larger than production in 2016, 5.5 million tonnes, and almost six times greater than the production in the first full year of operations of the Moatize mine in 2012, with 3.7 million tonnes.

For the transportation of coal, the corridor has a fleet of 85 locomotives and 1962 wagons, equipped with the highest technology of the railway branch. As a result, it is possible to increase the carrying capacity of general cargo and people to Mozambique and Malawi, increasing the generation of revenue and jobs in both countries and helping economic growth in Southeast Africa.

Vale is investing heavily in the formation and training of local youth. More than 1000 young people have benefited from technical training in the Labor Market Readiness (PPMT) and Professional Training Programs (PFP) programs, with training in Mozambique and abroad. With a workforce of around 2,000 own employees, mostly of Mozambican and Malawian nationalities, and more than 1,400 contractors, the Nacala Corridor is already significantly transforming the employability of the local labour force and playing a key role in improving the quality of life of communities.

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