Mozambique: Nacala Logistics posts US$16 million loss in third quarter

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Mozambique: Nacala Logistics posts US$16 million loss in third quarter

3:39 CAT | 19 Nov 2020

Nacala port . [File photo: Nacala Logistics / Facebook]

Coal transport on the Nacala Logistics Corridor fell by 40% in the third quarter of this year. As a result, Nacala Logistics, the company which manages the port of Nacala and maintains the railroad used to transport coal and other goods from Tete to Malawi, recorded a loss of US$16 million during the same period.

From July to September, the amount of mineral coal transported was 1,341,000 tons, down 40% compared to the same period last year, and a fall attributed to the negative effects of the Covid-19 pandemic and the concomitant fall in demand.

“With regard to coal shipment (by sea), production reached 1,410,000 tons, a fall, compared to the same period in 2019, of 37%,” a press release sent to ‘O País’ reads.

Nacala Logistics transported 86,000 tons of general cargo in the same period, down 46% on last year’s 159,000 tons.

Overall, the firm’s poor performance continues to be associated with weak demand in the transport of clinker, tea, Moatize fuel, tobacco, peas and various national cargo.

Losses, however, were 41% less than expected “due to reduced operating costs”, the statement adds without further explanation.

“We need to prepare for a ‘ramping up’ in the coal operation in 2021,” Fábio Iwanaga, financial administrator at Nacala Logistics says, alluding to the increased production expected by mining company Vale.

“This year continues to be challenging, due to the impact of Covid-19 on the entire chain of operation, both railroad and port. However, the demand for general cargo is already picking up,” he considers.

By Clemencio Fijamo

Source: O País