The first phase of modernisation of the Port of Nacala, in Mozambique’s Nampula province, funded by Japan and awarded to Japanese firm Penta – Ocean Construction Co Ltd, is about to be completed according to Mozambican daily newspaper Notícias.
Once this first stage is completed the port will have new fuel and container terminals and a station for controlling ships’ entry and exit as well as the northern pontoon being repaired, paving of the container terminal and a new railway terminal.
With work underway, cargo processing capacity is expected to increase from 2 million tons to 5.5 million tons per year by 2020.
Once construction work is finished trade along the Nacala corridor is expected to increase as well as with neighbouring landlocked, such as Malawi and Zambia.
In May 2014, Japan’s outgoing ambassador to Mozambique, Eiji Hashimoto, announced aid to Mozambique of US$232 million, US$32 million of which as a donation for the reconstruction of the port of Nacala.
The total cost of the repair and modernisation of the deep water port of Nacala is estimated at US$300 million and a financing agreement worth US$84 million was signed by the governments of the two countries in March 2013.