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Maputo Port Halts Receipt of Coal Cargoes

Maputo Port Halts Receipt of Coal Cargoes

Mozambique’s Maputo port has stopped accepting cargoes after the main entry point for trucking South African coal to the port was temporarily shut today because of rioting in the area.

Authorities issued advisories to close the Lebombo port of entry, the main trucking route that links South Africa to Maputo, after media reports surfaced of trucks being torched in Mozambique.

“[Maputo Port Development Co], in co-ordination with customs and other relevant Mozambican border authorities, has taken the decision to stop reception of cargo at the Port of Maputo,” the operator told customers on Wednesday.

Unrest in the country began after national elections on 9 October when the ruling party declared victory with a disputed 71pc of votes and extended its 49-year rule. Opposition to the election results in Mozambique has led to country-wide protests, now escalating to violence and rioting.

Mozambique Ports and Railways Authority (CFM) issued a communique on 6 November informing customers about suspension of rail operations to ensure safety of staff and operators.

On Monday, truck drivers were instructed to park on the side of the road and leave their vehicles. Customs officials also did not allow truckers to leave Mozambique for South Africa with any processed goods.

Sources told Argus that traders were desperately looking for truckers to move coal bound for Maputo to Richards Bay instead “to make up for lost volumes”. Trucking rates in South Africa are shooting up as a result.

This will “lead to consolidation at non-RBCT ports or higher sales prices”, a South Africa based trader said. “[The] implied demurrage has gone up at Richards Bay’s Multipurpose and Dry Bulk terminals because of port queues,” he added.

Maputo serves as an increasingly important export port for South African coal producers who have taken to trucking or railing coal across the border owing to the transit problems South Africa’s state-owned rail operator Transnet Freight Rail is experiencing.

About 2.7mn t of South African thermal coal was exported from Maputo between January to October this year, according to Kpler data. The coal export figure stood at 5.48mn t for 2023.

See Also

The dry bulk terminals at Maputo are privately owned by infrastructure operator Grindrod. It has 7.5mn t of export capacity for managing coal and magnetite.

Argus Media

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