Development of Mozambique’s port & rail systems

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2 CAPESIZE PANAMAX HANDYMAX HANDYSIZE

MOZAMBIQUE TRADE ROUTES

AT CENTER OF GLOBAL LOGISTIC CHAIN

VALEMAX /

CHINA MAX

Southern Africa Transport Corridors Southern Africa Rail Network & Ports

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TRANSPORT CORRIDORS – LIFELINE OF MOZAMBIQUE

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0

5,000

10,000

15,000

20,000

25,0001

0^

3 T

on

. M

étr

ica

s

2009 8,167 3,030 1,270 70 115 12,652

2010 8,606 3,805 1,376 131 160 14,079

2011 11,762 5,704 1,629 186 177 19,458

Maputo Beira Nacala Quelimane Pemba* Total

CFM PORT TRAFFIC

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CFM RAIL TRAFFIC

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,0001

0^

3 T

on

.Líq

uid

as

2009 577 2,679 504 3,760 554 296 4,610

2010 702 2,637 642 3,981 1,039 272 5,293

2011 772 4,510 723 6,005 1,019 242 7,265

Goba R.Garcia Limpopo CFM-S CFM-C CFM-N Total

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Fastest growing non-oil growing economy in Sub-

Saharan Africa

GDP growth averaged 8% from 1993 to 2010

Vastly underexplored, world-class mining

destination.

Large number of active prospecting &

exploration licenses for metals and minerals

Massive coking and thermal coal

reserves – annual output potential 100MT + Giant natural gas discoveries

MOZAMBIQUE: THE TRANSPORT CHALLENGES

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TETE – A STRATEGIC COAL HUB

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South Railway Network

Goba Line

Ressano Garcia Line

Limpopo Line

Salamanga Branch Line

Machipanda Line

Sena Line

Nacala Line

Xinavane Branch Line

Center Railway Network

North Railway Network

Cuamba-Lichinga Line

Mozambique Railway Network

MUTARARA – MUTUALI – NACALA (≈ 700 KM) 3

MOATIZE – NACALA THRU MOZAMBIQUE ( ≈ 1,070 KM) 4

MOATIZE – NACALA VIA MALAWI (913 KM) 2

New Transport Logistic Options

MOATIZE – BEIRA – SENA LINE (575 KM) 1

MOATIZE – MACUSE (525 KM)

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LICHINGA – PEMBA (≈ 700 KM)

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TECHOBANINE – BOTSWAN THRU ZIMBABWE (1200 KM)

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New Port and Railway Projects - South

Techobanine-Bostwana Railway Line

Port of Techobanine

Moatize to Nacala-a-Velha Railway Line (Via Malawi)

South –North Railway Line (2)

Lichinga to Pemba Railway Line

New Port and Railway Projects – Center/North

New Port and Railway Projects – North

Souh-North Railway Line (1)

South –North Railway Line (3)

Chiúta to Nacala-a-Velha Railway Line (Via Moz)

New Beira Coal Terminal

Port of Macuze

New Coal Terminal - Nacala-a-Velha

Port of Palma

Moatize to Macuze Railway Line

New Transport Logistic Options

South Railway Network

Goba Line

Ressano Garcia Line

Machipanda Line

Sena Line

Port of Nacala

Center Railway Network

North Railway Network

Cuamba - Lichinga Railway Line

Reabilitações e Expansões Rehabilitation and Expansions

MOATIZE

MARROMEU

VILA-NOVA

DONA-ANA

Km 157

Km 183 Km 545

Km 82

Km 44

INHAMITANGA

INHAMINGA

CAMBULATSISSE

SENA RAILWAY LINE ALIGNMENT

Km 287

MUANZA

DONDO

SENA

Km 487

Km 0

Km 90

Km 291

Coal Mines & Other Minerals

Malawi

Sugar & Molassos

Zambeze Valley

Zambeze Valley

Zambeze Valley

MIGA

Operator: CFM & Mining Companies

Sena Line Present Capacity: 6 MTPA

Sena Line Upgrade:

Stage 1: 10-12 MPTA

Stage 2: 20 MTPA

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CONTAINER

TERMINAL

OIL TERMINAL

2015 – NEW COAL TERMINAL (15-20MTPA)

Beira Port

GENERAL CARGO

TERMINAL

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FACT SHEET

Project: New Coal Terminal

Sponsors: CFM, Private Sector

Project Cost: $600m

Capacity: 15-20 MTPA

Land: 52 hectares

Completion: December 2015

2. NACALA CORRIDOR (VIA MALAWI): TRANSPORT LOGISTIC OPTION

FACT SHEET

Project: New Railway line Moatize-Nacala,

thru Malawi

Sponsors: CFM, Private Sector (Vale

Emirates)

Project Cost: $3.4Billions

Length: 913 km (Green field:230 km)

Capacity: 22 MTPA

Start-Up 13MTPA: September 2014

Start-Up 15MTPA: November 2015

Start-Up 18MTPA: March 2016

Completion 18MTPA : June 2016 15

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PROPOSED NACALA –A-VELHA COAL TERMINAL

Natural Deep Water Port (Capesize + Panamax): 1 berth, depth: -20m CD;

Capacity: 18 Million tons per annum Coal (Coke & Thermal);

Rail Unloading: 1 Wagon Tippler 4.800tph, 2 simultaneous wagons;

Static Stock Yard: 1.455,0 Kt (turn over ~12x);

Stockyard: 3 lines of 5 piles x 97.000ton = 1.455.000 ton (~12 turns);

Stockyard machines: 2 Stackers (4.800tph) & 2 Reclaimers (5.100tph);

Conveyor Belt: capacities of 4.800 and 5.100 tph, speed ~4,0 m/s;

Shiploaders: 2 shiploaders (5.100tph);

Employes During Operation: ~290

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4. NACALA CORRIDOR THRU MOZAMBIQUE TRANSPORT LOGISTIC OPTION

Sponsor: CFM, Private Sector

Type: Green field

Route: Chuita - Nacala

Project Cost: Rail $2.5b; Port - $0.9b

Rail Length: 1,070 KM

Capacity: 40/100 MTPA

Track: Standard Gauge

Axle Load: 32-ton axle load

Train Composition: 300 cars

5. MOATIZE – MACUSE TRANSPORT LOGISTIC OPTION

Project: Moatize- Macuse

Length: 525KM

Sponsor: CFM, JV Partner

Project Cost: Rail & Port: $1.3b

Capacity: 25 MTPA

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MACUZE PORT - INDICATIVE TERMINAL & PORT CONCEPT

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6. LICHINGA – PEMBA TRANSPORT LOGISTIC OPTION (≈700 KM)

Length: ≈700km

Type: Greenfield

Project Cost: $3b; Port - $0.6b

Capacity: 25 MTPA

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MENU OF TRANSPORT OPTIONS

Multi Purpose

Corridor

Multi Purpose

Corridor

New Lines

NACALA Line

SENA LINE

MOATIZE

MACUSE

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MAPUTO ZONE OF INFLUENCE: THE BOUNDARIES

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MAPUTO ZONE OF INFLUENCE

SECTOR PRODUCT WEST CENTER &

MAPH

CENTER &

MAPH

CENTER &

MAPH

NORTH

ENERGY Coal Witbank Ermelo

STEEL Magnetite Plalaborwa

STEEL Chrome Rustenburg Witbank Middlelburg Lyndenburg Plalaborwa

STEEL Manganese Nelspruit

INDUSTRY Copper Plalaborwa

CIVIL WORKS Granite Rustenburg Belfast Lyndenburg Potgietersrus

CIVIL WORKS Cement Goberone Gauteng Middelburg Nelspruit Pietsburg

FERTILISER Phosphate Plalaborwa

CHEMICALS Secunda

CONTAINER Gauteng Witbank Nelspruit

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MAPUTO ZONE OF INFLUENCE - COMPETITIVENESS

Absolute Rail Distances

(KM)

Maputo

MZ

Durban SA Richards

Bay SA

Cape SA AVG

WITBANK SA 469 801 627 1,662 890

PRETORIA SA 575 763 683 1,586 902

RUSTENBURG SA 661 874 794 776

TZANEEN SA 452 1,160 972 2,038 1,156

LYDENBURG SA 443 856 668 1,868 959

NELSPRUIT SA 219 830 642 1,902 898

PHALABORWA SA 374 1,083 895 784

PIETERSBURG SA 550 935 802 762

GWERU ZB 967 1,764 1,684 1,472

BULAWAYO ZB 1,083 1,880 1,800 1,588

MATSAPA SW 228 544 371 381

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Maputo Port Expansion Areas Map

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RESSANO GARCIA UPGRADE

FACT SHEET

•CFM investment Last 2-4 Years: $20millions

•CFM investment next 3 Years: $240millions

•Present Rail Traffic: 4.5m tons

•Traffic Potential: Coal, Magnetite,

•Technical Options: Doubling, Upgrade of Rail and

Bridges, Improvement of Signaling and

telecommunications

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Techobanine Rail and Port Project

DR

Y B

UL

K

MIN

ER

AL

FACT SHEET:

Sponsors: CFM, Private Sector

Project Cost: $5.255b

Railway Length: 1200 km

Completion: June 2016

Port and Rail Capacity: 30-100 MTPA

Completion: 2016

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IND

IAN

OC

EA

N

BREAK WATER NORTH

S

B

N

WET BULK

DRY BULK

Crude oil products, LPG,

NPG, crude oil…

Steam coal, cocking coal,

iron ore…

BREAK WATER SOUTH

DEEP SEA PORT OF TECHOBANINE CONCEPTUAL LAYOUT

ACQUISITION OF LOCOMOTIVES AND WAGONS

ACQUISITION OF NEW LOCOS

CFM-S: 10 locos from GE (CFM funds

@ $4.1m each)

CFM-C: 10 – 15 locos being processed

ACQUISITION OF NEW WAGONS

CFM-S: ≈500 wagons

CFM-C : ≈ 500-1000 (MP & Coal)

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General Financing Issues

Type of Projects: size of projects

Appetite: In terms of amount

Indicative Term Sheet

Instruments Available – Senior Debt, Mezzanine, Equity

Financing to: CFM, JV Company

GOM Guarantees

Modalities:

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The real Kings of Logistics

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THOUGHTS FOR THE DAY “In the search for partners to acquire

we adopt the same attitude one might find appropriate in looking for a spouse: it pays to be active, interested and open-minded, but it does not pay to be in a hurry” Warren Buffet

“If you can dream it, you can do it”

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