The operator of the Beira Port terminal, located in Sofala province in central Mozambique, has warned that the fuel crisis affecting the country threatens to disrupt maritime services and cargo handling operations.
“The fuel issue is a matter of concern to us. If it’s not resolved, it could cause some constraints for the Beira Corridor, which connects to several African countries,” said the company’s operations director, Miguel de Gengam.
He noted that although the outlook for 2025 is positive — with plans to handle about 400,000 containers and five million tonnes of general cargo — there are risks, such as difficulties in accessing fuel and foreign currency, which could negatively impact the economy. “The issue is also affecting the functioning of maritime services and cargo handling, as well as the schedule for cargo ship arrivals at Beira Port. The outlook for 2025 is good, but we must resolve the fuel and forex problems,” he stated.
In April, the government assured that Mozambique has fuel available at its main ports, countering public concerns amid worsening shortages in several provinces. According to the government, the issue is not a lack of supply but rather logistical challenges that are hindering internal distribution.
Deputy Minister of Mineral Resources and Energy, Inocêncio Impissa, explained that the root of the problem lies in transportation chain constraints, dismissing the idea of a supply crisis at the fuel entry points. “There is fuel in the ports. What we are facing are challenges in circulating it to consumption centers. We are monitoring the situation and working with sector stakeholders to ensure normalization,” he said.
Recently, the government signed a memorandum of understanding with Vitol to ensure fuel supply over the next 12 months, in an effort to stabilize the domestic market and ease the ongoing foreign exchange crisis. The measure, criticized by some operators for a perceived lack of transparency, is defended by the government as the best possible response to the currency shortage and growing pressure on energy imports.
The agreement allows for deferred payment up to 150 days after discharge and includes a credit line worth USD 600 million (MZN 37.8 billion) provided by Vitol over the term of the contract. The agreed supply covers 2.3 million metric tonnes of fuels, including 580,000 tonnes of gasoline, 172,000 tonnes of diesel, and 100,000 tonnes of Jet A1, plus an additional allocation of up to 18,000 metric tonnes of diesel per year.
Considered one of Africa’s most modern ports, Beira Port stands out due to its strategic location in central Mozambique. It also boasts solid transportation infrastructure, including railway and road links to regional countries such as Zimbabwe, Malawi, Zambia, Botswana, and the Democratic Republic of Congo.
Last year, the port inaugurated a new refrigerated export yard aimed at increasing cold cargo handling capacity for both exports and imports. The initiative responded to growing demand for temperature-controlled cargo transport, particularly for citrus fruits and seafood — two of the main products exported through the Beira Corridor.
In the first seven months of 2024, Beira Port’s general cargo terminal recorded a 24% increase compared to the same period in 2023. The container terminal also showed robust growth of 40%, handling 226,000 containers. Zimbabwe remains the largest user of the port infrastructure for exports, with goods such as chrome, lithium, petalite, and tobacco.
In 2023, the government announced a USD 290 million investment for the expansion and modernization of the port, aiming to increase container handling capacity from the current 300,000 to 700,000 per year.
Source: Diário Económico
