Mozambique: Port of Nacala exports 28% less coal than expected in Q1

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Mozambique: Port of Nacala exports 28% less coal than expected in Q1

8:15 CAT | 08 Jun 2021

File photo: Vale

The Port of Nacala, in northern Mozambique, exported 28% less Mozambican coal than expected in the first quarter of this year, company Nacala Logistics announced this Monday.

“[Coal] shipment reached 1.1 million tons, against the 1.5 million tons anticipated,” a statement reads, “a difference in the order of 28%.”

The numbers reflect the impact of the Covid-19 pandemic on the world economy, including the slowdown in Asian markets, the main customers for Mozambican coal, the country’s main export product.

According to Fábio Iwanaga, financial manager at Nacala Logistics, “operations in both businesses, coal and general cargo, continue to face challenges.”

The slowdown also means that the company has had fewer expenses.

Nacala Logistics’ gross profit before interest, taxes, depreciation, and amortization (EBITDA) increased 6% in the first quarter of this year compared to the last quarter of 2020, because expenditure was lower than expected.

“The growth in gross profit was due to operating expenses below expectations,” the statement explains.

Nacala Logistics is responsible for the management and operation of the more-than 1,600 kilometre railway line connecting the Vale coal mine in Moatize with the Port of Nacala on the Indian Ocean coast.

Source: Lusa