Public Disclosure Authorized
47785
Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
MOZAMBIQUE – TRADE AND TRANSPORT
FACILITATION AUDIT
Submitted to:
World Bank
Submitted by:
René Meeuws
NEA Transport research and training
Reference:
R20040164/30144/rme/lwi
Rijswijk, The Netherlands, August 2004
Mozambique – Trade and transport facilitation audit
CONTENTS
1
EXECUTIVE SUMMARY .................................................................... 5
2
INTRODUCTION.................................................................................7
3
OVERVIEW OF THE MOZAMBICAN ECONOMY ............................. 9
4
TRADE PATTERNS..........................................................................15
5
INFRASTRUCTURE AND TRANSPORT POLICIES ....................... 23
5.1
5.2
5.3
Transport infrastructure.................................................................................23
Transport policy and the organization of the transport sector.......................35
Regulatory framework for the transport sector .............................................37
6
TRANSPORT AND LOGISTICS SERVICES.................................... 43
7
COSTS AND DELAYS OF TRANSPORT AND LOGISTICS ........... 49
8
CUSTOMS AND TRADE ADMINISTRATIVE PROCEDURES ........ 55
8.1
8.2
Customs administration and Customs procedures.........................................55
Trade regulations and trade procedures.........................................................59
9
TRANSPORT AND DEVELOPMENT CORRIDORS........................ 62
9.1
9.2
9.3
9.4
The concept of development corridors in Mozambique................................62
The Maputo Corridor ....................................................................................65
The Beira Corridor and the Sena Line...........................................................72
The Nacala Corridor......................................................................................77
10
CONCLUSIONS AND ACTION PLAN ............................................. 81
10.1
10.2
10.3
Main findings and identified problems .........................................................81
Implementation strategy ................................................................................82
Action Plan....................................................................................................85
ANNEX 1
REFERENCES AND INFORMATION SOURCES............................ 91
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1
EXECUTIVE SUMMARY
Mozambique is a country situated in the south-eastern part of Africa on the Indian Ocean with
an area of 799,380 km2 and 2,515 km of coastline. It is the natural economic gateway for the
north-eastern part of South Africa, Swaziland, Zimbabwe, Zambia and Malawi. The ports of
Maputo, Beira and Nacala are used by its neighboring countries to export and import a
substantial part of their commodities. As such, Mozambique is a transit country.
Since 1986 Mozambique has been undergoing radical changes. The centrally planned statecontrolled economy is transforming into a market-oriented one maintaining its pro-poor budget
policies. These changes are not gradual and uni-directional as they provoke social reactions
leading to contradictory developments in the socio-economic sphere.
Mega projects involving investments of billions of US dollars are recently being implemented.
Although they boost socio-economic development and already causing economic spread effects
by attracting supporting industries, they are highly capital-intensive and form no permanent
solution for the abundantly available labor force. Ports and railways are being privatized.
Customs is partly managed by foreign agencies. However, the legal and regulatory framework,
in particular labor law, commercial law and transport legislation, apparently remain behind still
reflecting the old bureaucratic reality. This results in excessive paperwork, red tape and
corruption regarding business development and trade.
There is also an enormous backlog of maintenance of transport infrastructure. The transport
sector is constrained by high freight transport costs; unpredictability of railway operations;
inability of public sector entities in the transport sector to generate enough surplus to keep their
assets in a good condition; deteriorating condition of the rail and road infrastructure because of
lack of maintenance.
All these factors make access to the international markets difficult for Mozambican producers
and exporters as they are not competitive. Therefore, it is of utmost importance that the legal
and regulatory framework will be urgently renewed to reflect this new economic reality and that
mechanisms will be put in place to rehabilitate existing and to invest in new transport structure.
At the same time, conditions must created to strengthen domestic production of agricultural and
industrial commodities and investments in the internal transport infrastructure network and
feeder roads.
A pro-active attitude from the Mozambican Government is needed to link the development of
the transit potential through the transport corridors directly with the development of the homebased agricultural, industrial, mining and services sectors by removing the physical and nonphysical barriers to trade and transport and stimulating competition.
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2
INTRODUCTION
Mozambique is a country in development. Rapid changes are taking place in the socioeconomic sector. Mega projects are being implemented successfully like the establishment of
MOZAL nearby the capital Maputo with an installed capacity of producing 506,000 tons of
primary aluminum; the major ports are being privatized; Mozambique Railways is still in the
process of privatization; and Mozambique Customs is run by Crown Agents. Also important
steps have been made to liberalize external trade. At the same time, however, the existing
regulatory framework for business development and trade activities still facilitates excessive
bureaucracy, red tape and corruption. This, together with a backlog in maintenance of transport
infrastructure, makes it extremely hard for Mozambican producers to compete on international
markets.
The objective of this Trade and Transport Facilitation Audit (TTFA) is to establish a diagnostic,
as comprehensive as possible, on the situation in Mozambique in terms transport costs and
efficiency related to external trade and international transportation services providing an
integrated approach.
The area of focus includes:
•
Foreign trade patterns.
•
Organization and quality of transport and logistics services and infrastructure available
to exporters and importers from Mozambique and its neighboring countries.
•
Assessment of procedural and documentary requirements necessary to move goods
through borders or in transit operations.
Ultimately the audit aims at providing a comprehensive understanding of supply chain
management constraints in Mozambique irrespective of their cause: governance, regulation,
private sector practices and organization.
The audit, therefore, focuses on:
•
The nature of existing constraints in regulatory, documentary and procedural
requirements related to international trade transactions and corresponding transport
operations.
•
The availability and the organization of transport services to trade in Mozambique and
obstacles to their modernization and development.
•
The transit issues and the potential of Mozambique as a transit country using the main
transport corridors.
Based on the identification of the shortcomings, an action plan and an implementation strategy
is proposed for the measures to be taken for the short and longer term.
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3
OVERVIEW OF THE MOZAMBICAN ECONOMY
Mozambique’s economy is diversified in terms of shares of the different economic sectors in the
Gross Domestic Product. The share of agriculture is about 20 percent of GDP. The main crops
produced are maize, rice, cassava, groundnuts, beans, sweet potatoes and sugar cane. The most
important exports are sugar, cotton, copra, cashew nuts, tea, and citrus fruit. The agricultural
sector plays a crucial role in the development more than 78 percent of the Mozambican
population is living on the countryside, where their main economic activity is agriculture. The
share of industry in GDP is about 30 percent, mainly caused by the some recent investments in
large industrial projects like the production of aluminum. The service sector contributes with 50
percent to GDP, of which 18 percent by trade.
In 2001 the Government of Mozambique adopted an Action Plan for the Reducing Absolute
Poverty. This program targets a real GDP growth rate of 8 percent a year over 2001-2005. This
has been achieved as Table 1 shows with real GDP growth estimated at 10 percent a year, on
average, and in 2001-2002, and projected at 7 percent in 2003. The figure of 85,206 billions of
MT GDP in 2002 in Table 1 may need to be adjusted to 82,747.4 billions of MT according to
the National Institute of Statistics 1. This growth in 2001-2002 is mainly caused by a rebound
from the devastating effects of the floods in 2000 and is brought forward by the agricultural and
construction sectors and by the positive impact of the implementation of mega projects like
MOZAL.
Although in absolute terms the agricultural sector has increased since 1998 by more than 30
percent, its relative share in GDP fell back from 27.2 percent in 1998 to 19.5 percent in 2002.
The industrial sector increased from 1998 to 2002 from 10,090 billions of MT to 26,096 billions
of MT mainly caused by the construction boom in 2002. The relative share of the industry
raised from 21.5 percent in 1998 to 30.6 percent in 2002. The starting of the mega projects
affected also the transport and communications sector, which increased from 6,811 billions of
MT in 2001 to 9,468 billions of MT in 2002 with a share in GDP of 11.1 percent.
The average annual inflation rate has varied from 2000 to 2003 from 7.5 percent to 16.6 percent.
Year
2000
2001
2002
2003
Annual average inflation rate (in percent)
12.7
9.1
16.6
7.5
Source: Ministry of Finance and Planning Mozambique; March 2003
The interest rates for lending, however, are increasing from 23 percent in 1999 towards 37
percent in 2002.
1
Statistical Yearbook 2002 Moçambque; p. 130; INE 2003
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Table 1
Mozambique: Composition of Gross Domestic Product, 1998-2002 (in billions
of MT)
Source: IMF Country Report No.04/51
The Government of Mozambique is trying to persist in its efforts to maintain macro-economic
balance. By controlling public expenditure and with persevering realistic fiscal, monetary and
exchange rate policies.
The evolution of the current expenditures of the Government from 1998 to 2002 follows
precisely the same pattern as the development of the total revenues for the Government as Table
2 shows. The revenues increased from 5,324 billions of meticais in 1998 to 12,057 billions of
meticais in 2002; the current expenditures increased in the same time period from 5,268 billions
of meticais to 13,469 billions of meticais.
10
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The share of the government revenues in GDP increased from 11.3 percent in 1998 to 14.2
percent in 2002. Taxes on international trade formed 2.2 percent of GDP in 2002; V.A.T. 5.4
percent.
Table 2
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Mozambique: Government Finances, 1998-2002 (in billions of meticais)
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Table 3
Mozambique: Government Finance, 1998-2002 (concluded)
(in billions of meticais)
The trade balance shows an improvement since 1999, as Table 3 shows. The value of the
imports has been stabilized between 1,200-1,300 million U.S. dollars per year, while the value
of exports has increased from 283.7 million U.S. dollars in 1999 to 681.8 million U.S. dollars in
2002.
Table 4
Mozambique: Balance of Payments, 1998-2002(in millions of U.S. dollars)
Source: IMF Country Report No.04/51
12
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Mozambique’s economic policy seems to be focused on mega projects in industry, mining, ports
and transport infrastructure. This policy will certainly bring benefits to the country as it will not
only attract other investments in new areas (tourism), but also for supporting economic
activities of existing production facilities, what is already happening in Beluluane Free
Industrial Zone nearby the aluminum plan of MOZAL.
Investments in rural infrastructure and agriculture should, however, not be neglected as the
overwhelming majority of the Mozambican labor force is engaged in agricultural activities in
the countryside. These agricultural activities may enable production of cash crops for export. To
achieve this it will be necessary to ban bureaucratic procedures for establishing and running a
business and facilitate trade.
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4
TRADE PATTERNS
As Mozambique is a large country, divided essentially in 3 regions as far as logistics is
concerned, it could be good to tell about the regions of production. The production of marketed
crops increased substantially since 2000. The total volume of export crops was expected to raise
from 473,200 tons to 1,491,600 tons in 2002/3. This increase is mainly caused by the sugar
cane, which constitutes 90 percent of the total volume of marketed export crops in 2002/3.
Table 5 also shows that production of marketed basic food crops remains stable and varies
between 500,000 and 580,000 tons per year.
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Table 5
Mozambique: Production of Major Marketed Crops, 1997/98-2002/03
The value of Mozambican exports (f.o.b.) increased from 248.2 millions of U.S. dollars in 1998
to 681.8 millions of U.S. dollars in 2002. The export of aluminum constitutes the major share of
the exports on 2002 (52 percent). Also the exports of electricity increased from 36.2 millions of
U.S. dollars in 1998 to 107.4 millions of U.S. dollars in 2002.
16
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Table 6
Mozambique: Commodity Composition of Exports, 1998-2002 (value in
millions of U.S. dollars; volumes in thousands of metric tons and unit values in
US dollars per metric ton)
Table 7 shows the exports from 1998 to 2002 by country of destination. The major export
partner is the European Union to where MOZAL is exporting its aluminum. The export of
aluminum is contained in the 64.6 percent of the category ‘Other’ under ‘Other countries’ in
2001 and in the 41.8 percent in the category ‘Other’ under OECD countries. South Africa
remains a stable partner for the export of Mozambican products with 17.7 percent in 2002.
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Remarkable is the decline of the export to Zimbabwe since 2000 from 17.7 percent in 2000 to
5.8 percent in 2002.
Table 7
Mozambique: Exports by Country of Destination 1998-2002 (in percent of total
exports unless otherwise indicated)
Mozambique’s imports are quite diversified regarding the type of commodity, which is being
imported. Agriculture and fishing counts for 10 percent of the import and consists of mainly rice
and wheat. From 2000 to 2002 there was a large increase of the import of metals from 10.6
millions of U.S. dollars to 415.2 millions of dollars. This was mainly raw material for the
MOZAL aluminum plant. Machinery and equipment dropped from 188.9 millions of U.S.
dollars in 2000 to 136.1 millions of U.S. dollars in 2002.
18
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Table 8
Mozambique: Commodity Composition of Imports, 2000-2002 (in million
U.S. dollars)
Product Group
2000
2001
2002
1162.3
1063.4
1262.9
Agriculture and fishing
165.5
151.4
139.6
Minerals and fuels
190.2
183.6
160.5
Other chemical products
59.9
78.3
87.2
Textiles and clothing
41.5
26.2
19.7
Iron and steel
68.9
39.7
50.6
Other metals
10.6
234.7
415.2
Machinery
188.9
131.7
136.1
Transportation equipment
174.8
80.5
135.5
Other products
262.0
137.3
118.5
Total
Source: INE and several other sources.
Table 9 shows the imports by country of origin from 1998 to 2002. Remarkable is the increasing
share of the European Union as country of origin for Mozambican imports. Also under the
heading ‘Other’ under ‘Other countries’ 50 percent is originating from the EU without further
country specification. The share of South Africa dropped from 57.2 percent in 1999 to 30.3
percent in 2002.
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Table 9
20
Mozambique: Imports by Country of Origin 1998-2002 (in percent of total
imports unless otherwise indicated)
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Matola Cargo Terminal na Frigo in Matola; July 2004
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5
INFRASTRUCTURE AND TRANSPORT POLICIES
5.1
Transport infrastructure
The pattern of the transport infrastructure in Mozambique reflects the main characteristics of the
Mozambican economy in the past. Before 1975 most of the transport infrastructure in
Mozambique was directed towards its neighboring landlocked countries and South Africa.
Mozambique has always played an important role as a transit country for South-african, Swazi,
Zimanwean, Malawian and Zambian import and export through its ports of Maputo, Beira and
Nacala. The main railway infrastructure network was east-west directed: Maputo-Swaziland;
Maputo-South-Africa, Maputo-Zimbabwe; Beira-Zimbabwe; Beira-Malawi; Nacala-Malawi.
There is no north-south railway connection, as the figure on the transport infrastructure network
in the SADC region shows:
Figure 5.1
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Transport Infrastructure Network in the SADC Region
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Mozambique – Trade and transport facilitation audit
The same applies to some extent for the road infrastructure, although there is a north-west
connection by road. However, this connection has been out of function for many years during
the civil war and is only in use since a few number of years. Therefore, the transport
infrastructure network inherited from the past has a strong regional dimension. This also means
that less investments had been made in linking the different regions in the country to one
infrastructure network. As the economic interests were foreign-based, there had not been much
interest in integrating Mozambique’s rural economy to the main transport infrastructure
network, making the commercialization of the agricultural produce an economically difficult
and expensive task.
Mozambique has more than 25,000 km of classified road, of which 22 percent is surfaced.
About 4,300 km are classified as primary roads. More than 50 percent of the classified roads are
tertiary roads.
Table 10
Classified Road Network in Mozambique (in km)
1996
1997
1998
1999
2000
2001
2002
Total
29190
28463
29951
31955
28463
28463
28463
Classified roads
26194
25467
26955
28959
28463
28463
28463
Main roads
4310
4370
4345
4310
4275
4275
4275
Secondary roads
8126
7846
8325
8126
7880
7880
7880
13758
13251
14285
16523
13184
13184
13184
2996
2996
2996
2996
3124
3124
3124
Tertiary roads
Non-classified roads
Source: Ministry of Public Works; INE
Table 11
Type of surface for classified roads in Mozambique (in km)
1996
1997
1998
1999
2000
2001
2002
Total
29190
28463
29951
31955
28463
28463
28463
Classified roads
26194
25467
26955
28959
28463
28463
28463
Paved
5338
5285
5536
5266
5269
5269
5269
Gravel
6935
8154
7751
6879
7561
7561
7561
13876
12672
13407
16814
15633
15633
15633
45
644
261
0
0
0
0
Dirt
Other
Source: Ministry of Public Works; INE
The quality of the road network has considerably improved during the last ten years. The share
of good and fair roads increased from 25 percent in 1996 to 56 percent in 2002.
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Table 12
Quality of the Road Network in Mozambique (in km)
1996
1997
1998
1999
2000
2001
2002
Total
29190
28463
29951
31955
28463
28463
28463
Good
3529
4731
6441
8068
7003
7363
7429
Fair
3823
5907
11464
10290
7422
8275
8454
Weak
6017
2874
...
2610
5332
5649
5977
Bad
8277
9524
9178
8418
5424
4390
4241
Impassable
4548
2430
2868
2540
3282
2786
2362
Source: Ministry of Public Works
The costs of road works in Mozambique are very high. Table 12 shows the difference between
the cost planned in the appraisal stage of the formulation of a roads project funded by the World
Bank and the actual costs at the implementation stage:
Table 13
Costs of Road Works in U.S. dollars per kilometer
appraisal
actual
% increase
6000
23500
292
Rehabilitation
150000
286740
91
Feeder roads
17000
61000
259
Periodic maintenance
4500
12093
169
Routine maintenance
250
765
206
Backlogged/emergency works
Source:
Implementation Completion Report Second Roads and Coastal Shipping Project Mozambique; World Bank; December
2003.
Although the cost estimates at the start of the project were much too low, the results of the
project were good: 78 percent of the paved roads were classified as good/fair after the
completion of the project and travel time had declined by more than 50 percent.
The main aim of the Mozambican Government in the area of roads is the increase the coverage
of access roads, with priority for those which:
1. allow that poor regions, isolated but with agricultural potential, have access to national
markets;
2. help in the expansion of markets;
3. produce impact in the reduction of transport costs; and
4. promote the development of the main corridors. 2
2
Review of 2003 Economic and Social Plan; Republic of Mozambique; March 2004; p. 85.
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Map of the road network in Mozambique
(in red the main international corridors and in green the secondary corridors)
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Table 14
Rehabilitation and Maintenance of Roads (in km and percentage of
accomplishment relative to the Sectoral Plan)
Source: Review of 2003 Economic and Social Plan; Government of Mozambique; March 2004.
As can be deducted from Table 14, Mozambique has considerable difficulties in realizing its
targets, in particular after 2001 when the Second Roads and Coastal Shipping project was
completed. In 2003 serious problems were faced with the rehabilitation of primary roads
(accomplishment rate of 23.2 percent) and periodic maintenance (accomplishment rate of 20.4
percent.
At the institutional side, an autonomous Road Agency has been established (ANE) out of the
National Directorate for Roads and Bridges (DNEP) to make the road sector more efficient and
effective. A Road Fund exists and was initially under ANE, but has become independent with
its own separate board. In theory, a direct transfer mechanism of road fund revenue has been
agreed. However, in practice it is still not functioning properly. The main problem is the timely
transfer of resources to the road fund.
-------------------------------------------------------------------------------------------------------------------N4 Toll Road Witbank – Maputo
Mozambique has one toll road linking Witwatersrand in South Africa with Maputo. In 1997 the
concession contract was signed between the Republic of Mozambique, the Republic of South
Africa, the South-African Roads Board and TRAC Trans African Concessions (Pty) Ltd. For
design, construction, rehabilitation, financing, operation, financing, maintenance and future
expansion of the National Route 4 between Witbank in South Africa and Maputo in
Mozambique over a distance of 503 km. The investment is R 3 billion (1996) and the
concession period for 30 years. R 1.5 billion has been spent during the first 3.5 years.
The road is fully operational and the concession last until 2028 under Build-Operate-Transfer
regime. There are five toll plazas in Maputo and Moamba in Mozambique, and in Nkomazi,
Machado and Middelburg in South Africa. TRAC, in conjunction with Vodacom’s 147
Emergency Service and operated by International SOS Assistance, have positioned SOS call
boxes at 4 km intervals along the entire toll route on both sides of the road. The SOS emergency
communication system is a link with ambulance and emergency services, the South African
Police Service, traffic authorities, the fire brigade, tow and rescue services.
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The toll fees in 2003 were as follows:
Plaza
Class1
Class 2
Class 3
Class 4
Middelburg
R27
R58
R87
R115
Machado
R40
R110
R160
R229
Nkomazi
R30
R61
R88
R127
Moamba
Mmt55000/R19.64
Mmt135000/R48.20
Mmt260000/R96.41
Mmt400000/R144.
61
Mmt9500/R3.40
Mmt33000/R11.87
Mmt65000/R23.75
Mmt100000/R35.6
2
Maputo
Class 1: Light Vehicles
Class 2: Medium Heavy Vehicles with one heavy axle
Class 3: Large Heavy Vehicles with three or four axles where at least one of the axles is a heavy one
Class 4: Extra Large Heavy Vehicles with five or more axles where at least one axle is classified as heavy
In 2004 the toll fees were raised in South African territory between 1.64 percent and 3.33
percent. The toll fee varied from R0.24/km for light vehicles to R1.29/km for extra large heavy
vehicles.
Hannes van Wyk from Trans African Concessions at a seminar in Maputo; July 2004
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The advantage for trucks are multiple:
•
No more border tax for vehicles crossing into Mozambique at Ressano Garcia
•
No need to change load configuration when crossing into Mozambique (TRAC has
negotiated that, provided vehicles remain on the N4, the load configuration does not
change between Mozambique and South Africa)
•
Improved road conditions and continual road maintenance
•
24-hour road side assistance through TRAC patrols
•
SOS telephones at regular intervals along the toll route.
The concession contract did not contain details on law enforcement, and more in particular on
load control. During the few years of operation Trans African Concessions faced already R 200
million on damage on the road mainly cause by the overloading of the trucks. Discussion with
the South African authorities about possible claims resulted in a strategy that TRAC would
assist the authorities of South Africa to enforce road and road transport legislation. An
agreement was reached between the Provincial Traffic Department of Mpumalanga, the South
African Roads Agency and TRAC in this respect. The South African authorities provided 80
traffic officers and TRAC assigned 60 employees to deal with load control. Weighbridges were
procured for the road network, including for possible escape routes. The results are that
percentage of overloaded vehicles reduced from 23 percent in the period immediately after the
opening of the road to 9 percent in 2004. As the South African legislation prescribes a
maximum of nine tons per axle with a margin of 5 percent, the percentage of illegally
overloaded vehicles is nowadays less than 1 percent. Four companies are still on the black list of
frequent violators of the law. Also the practice of illegally obtained permits for abnormal loads
should be combated. TRAC is in negotiation with the Mozambican Government to tackle the
problem of overloading on the Mozambican part of toll road, where in two years a damage was
caused of R 18 million because of overloading.
-------------------------------------------------------------------------------------------------------------------The railway infrastructure network comprises 3,048 km of railroad and is subdivided into four
geographical areas: CFM-South; CFM-Center; CFM-North; and CFM-Zambezia.
CFM-South is considered to be the most important of Mozambique and consists of the railway
line Maputo-Ressano Garcia (88 km) linking with South Africa with a capacity of 15 million
tons per year; Maputo-Goba (74 km) linking with Swaziland with a capacity of 7.2 million tons
per year; Maputo-Chicualacuala (520 km) linking with Zimbabwe with a capacity of 5.7 million
tons per year. CFM-South also includes an industrial link to mines for construction materials in
Salamanga. CFM-South also integrates other lines which are presently not operational because
of a large degree of degradation: Moamba-Ungubane-Xinavane (93 km); Xai-Xai- Chicomo (90
km); Inhambane-Inharrime (90 km); Manjacaze-Marão (50 km).
CFM-Center includes the railway lines Beira-Machipanda (318 km) linking with Zimbabwe and
the Sena line (Dondo-Dona Ana 298 km; Dona Ana-Moatize 240 km; Dona Ana-Vila Nova 43
km; Inhamitanga-Marromeu 88 km).
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CFM-North consists of the railway line Nacala-Cuamba-Entre Lagos (610 km) and CuambaLichinga (262 km).
CFM-Zambezia consists of the railway line Quelimane-Mocuba (145 km).
The railway gauge in the South and the Sena Line is 1,067 mm; the gauge of the other lines is
1,060 mm.
The rolling stock has decreased considerable during the last ten years. The number of
locomotives was reduced from 87 in 1994 to 51 in 2001. The number of wagons for cargo
decreased from 5126 in 1994 to 2330 in 2001.
Railway Station in Maputo; July 2004
Table 15
Locomotives
Passenger wagons
Cargo wagons
Mozambique: Railway equipment 1994-2001
1994
1995
1996
1997
1998
1999
2000
2001
87
83
82
85
62
62
50
51
155
158
135
110
111
96
92
93
5126
3797
3170
5419
2388
2329
2280
2330
Source: INE, 2001
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Mozambique has three primary ports: Maputo, Beira and Nacala. The Port of Maputo had an
installed capacity of 12,010,000 tons per year, but is presently 9,255,500 tons per year. The total
length of the berths is 3,876 metres and include dedicated terminals for fish, coastal shipping,
general cargo, coal, fruits/citrus, sugar, melasse, containers and steel. The Port of Matola,
nearby the Port of Maputo, has an installed capacity of 4,750,000 tons per year with a total berth
length of 865 metres including dedicated terminals for coal, petrol, cereals and aluminium. The
Port of Beira had an installed capacity of 7,470,000 tons per year, but presently only 4,950,000
tons per year may be used. The multi-purpose container terminal has a berth length of 645
metres with an installed capacity of 100,000 TEU per year. There are also dedicated terminals
for general cargo with a berth length of 670 metres and an installed capacity of 2,300,000 tons
per year and for fuels with a capacity of 3,000,000 tons per year. The Port of Nacala had a
capacity of 2,600,000 tons per year, but presently only 1,600,000 tons per year may be realized.
The general cargo terminal has an installed capacity of 2,000,000 tons per year and the
container terminal with a berth length of 327 metres a capacity of 30,000 TEU per year. The
Port of Nacala also has a liquid bulk terminal. The two secondary ports of Quelimane and
Pemba have an installed capacity of 650,000 tons per year and 633,960 tons per year,
respectively.
The handling equipment in the ports has been reduced from 1994 to 2001. The number of
electric cranes went down from 52 in 1994 to 34 in 2001. Also the number of empilhadores do
cais decreased from 69 in 1994 to 15 in 2001.
Table 16
Mozambique: Ports handling equipment 1994-2001
1994
1995
1996
1997
1998
1999
2000
2001
Electric cranes
52
53
51
51
48
45
43
34
Empilhadores cais
69
67
47
22
17
11
13
15
Source: INE, 2001
Entrance at the Port of Maputo; July 2004
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Map produced by Manica Freight Services Mozambique
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Table 17
Mozambique: Airport Infrastructure
Town
Airport
name
ICAO
IATA
Usage
Customs
Runway
IFR
Rwy
length
Angoche
Angoche
FQAG
ANO
Civ.
No
Unpaved
No
3600 ft
Beira
Beira
FQBR
BEW
Civ.
Yes
Paved
Yes
7800 ft
Bilene
Bilene
FQBI
Civ.
No
Paved
No
2200 ft
Chimoio
Chimoio
FQCH
VPY
Civ.
No
Paved
No
7800 ft
Cuamba
Cuamba
FQCB
FXO
Civ.
No
Paved
No
8200 ft
Inhaca
Inhaca
FQIA
Civ.
No
Paved
No
2100 ft
Inhambane
Inhambane
FQIN
INH
Civ.
No
Paved
Yes
4900 ft
Lichinga
Lichinga
FQLC
VXC
Civ.
No
Paved
Yes
8300 ft
Lumbo
Lumbo
FQLU
Civ.
No
Paved
No
4900 ft
Maputo
Maputo
FQMA
Civ.
Yes
Paved
Yes
12000 ft
Marrupa
Marrupa
FQMR
Civ.
No
Paved
No
5600 ft
Mocimboa
Da Praia
Mocimboa
Da Praia
FQMP
MZB
Civ.
No
Paved
No
6500 ft
Nacala
Nacala
FQNC
MNC
Mil.
No
Paved
No
8200 ft
Nampula
Nampula
FQNP
APL
Civ.
Yes
Paved
Yes
6500 ft
Pemba
Pemba
FQPB
POL
Civ.
Yes
Paved
No
5900 ft
Ponta De
Ouro
Ponta De
Ouro
FQPO
Priv.
No
Paved
No
2400 ft
Quelimane
Quelimane
FQQL
Civ.
No
Paved
Yes
5900 ft
Songo
Songo
FQSG
Civ.
No
Paved
No
2900 ft
Tete
Chingozi
FQTT
Civ.
No
Paved
Yes
8200 ft
Ulongwe
Ulongwe
FQUG
Civ.
No
Paved
No
5900 ft
Vilankulu
Vilankulu
FQVL
Civ.
Yes
Paved
Yes
4800 ft
MPM
UEL
TET
VNX
Explanation:
ICAO-code
International Civil Aviation Organization (ICAO), a 4-letter airport location indicator. The field above is left blank if no ICAO
location indicator is available for the selected airport.
IATA-code
International Air Transport Association (IATA), a 3-letter identifier for the relevant airport. The field above is left blank if no
IATA code is available for the selected airport.
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Usage
Airports are classified in three categories: civil airports open for public use, military airports and private airports not open to
the public. Airports that are joint use, both civil and military, are shown as civil airports.
Civ.
Civil airport, open for public use (including joint use).
Mil.
Military airport, not open for public use.
Priv.
Private airport, not open for public use.
Customs
Yes
Customs service available during airport operating hours.
No
Customs service not available.
O/R
Airport has customs service, prior notification is required.
Pto.
Airport has part-time customs service available, not necessarily
identical to the airport hours.
ADCUS
An airport within the USA for which the FAA 'ADCUS' method of
prior notification may be used.
ADCUS O/R
An airport within the USA for which the FAA 'ADCUS' method of
prior notification may be used but where restrictions apply.
Runway
Identification of the surface of the longest runway available:
Paved
Paved (hard surface) runway
Unpaved
Unpaved (soft surface) runway (Only lighter aircraft)
Water
Water (for float planes)
IFR
This field indicates if the airport has any officially published instrument approach procedure.
Yes
Instrument approach procedure is published.
No
Instrument approach procedure is not published. (Airport not
suitable for traffic during bad weather or darkness.)
Runway Length
Shows the length in feet of the longest runway available at the selected airport, rounded down to the next full hundred feet. If the
airport has both hard (paved) and soft (unpaved) runways, the length of the longest hard surface runway is shown. If the longest
runway is both, hard and soft surface, the length of the hard surface portion is shown.
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5.2
Transport policy and the organization of the transport sector
The Mozambican transport policy can be characterized as progressive in promoting the
liberalization of transport sector, the introduction of concession regimes for management of
basic transport infrastructure and in creating favorable conditions for public-private partnerships
in investments in transport infrastructure. The recent achievements in Mozambique in this
respect are quite impressive:
•
The major road connection between Maputo and Witwatersrand in South Africa, the
N4, has been concessioned to Trans African Concessions Inc. And is now functioning
as a toll road.
•
The Port of Maputo has been privatized and given into concession to Maputo Port
Development Company, which started operating in 2003.
•
The Ports of Beira and Quelimane have been privatized and given into concession to
Cornelder Mozambique, which already started its operations in Beira and will start the
operations in Quelimane shortly as the concession just had been granted in July 2004.
•
The Port of Nacala had been given in concession to an international consortium.
However, there are still serious problems among the main shareholders and operations
have not started yet.
•
Mozambique Railways CFM is in the stage of concession granting and privatization.
The Ressao Garcia and Limpopo Line in the south and the Beira-Machipanda and the
Sena Line in the centre of the country have already been given in concession.
There are also concrete plans to privatize the main airports and LAM Mozambican Airlines.
However, these trends of concessioning the main transport infrastructure network and
privatizing transport services and operations are still being hampered by outdated legislation
and regulations. Another important constraint is lack of capacity building and experience among
the main stakeholders in transport infrastructure and transport services and operations, which
impedes efficient and effective operations within this new framework, resulting in excessive
bureaucracy, red tape and corruption. There are also counter forces operating, which are trying
to keep control over the main assets in the field of transport infrastructure and transport
services. An example is the way how Mozambique Railways is trying to remain involved in
most investment and operational projects in the sector by negotiating shares in the new
consortia.
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Table 18 below shows in which Mozambique Railways has shares.
Table 18
Companies in which CFM has shares
Companies in which CFM has shares
Airplus, SARL
Bukusha Holliday Resort, LDA
BIM-Leasing
Capital Social (%)
18,4
49
5
Cornelder de Moçambique, SARL
30
Cimentos de Moçambique, SARL
4
Central East African Railways
49
Corredor de Desenvolvimento do Norte
40
Ressano Garcia Railway
49
Linha férrea do Limpopo, Goba
49
MIPS-Mozambique International Port Services, SARL
33
ProBrita
40
Sociedade de Desenvolvimento do Porto de Maputo
49
Sociedade de Desenvolvimento do Corredor de Maputo
25
Sociedade de Terminais de Moçambique
50
INTUR Sociedade de turismo
35
Transcarga, LDA
17
Transmarítima, LDA
10
Terminal de Cabotagem do Porto de Maputo
49
Terminal de Citrinos do Porto da Beira
34
Source: CFM 2004
This may turn-out to become one of the major bottlenecks for a successful development of the
transport and logistics in Mozambique.
The road transport sector is largely liberalized, although there still exist some legal and
institutional constraints for access to the national and international road transport market.
Efforts have been made to create an enabling environment to attract private investment in the
sector. However, the level of such an investment is still inadequate to meet and sustain the
demand for both goods and services. In particular, the rural areas face problems in the
commercialization of their products and in access to the main road network.
A Mozambican Federation of Road Transport Associations FEMATRO exists integrating the
provincial associations. In the Maputo region the interests of the road hauliers are represented
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by ASTROCAMA, the Association of Road Freight Transport Companies of Maputo.
ASTROCAMA has 72 members.
Although the international road transport market still is dominated by foreign registered
companies and trucks (in particular, South African companies in South Mozambique and
Zimbabwean companies in Central Mozambique), the share of Mozambican companies is
increasing. The road transport market is dominated by a few larger and relatively many medium
sized companies, which are making use of the very small companies (driver-owner) on subcontracting basis. The fleet of vehicles for international transport is relatively new.
FEMATRO/ASTROCAMA identify the following obstacles for the development of the road
transport sector in Mozambique:
•
Opening hours at border crossings should be open until 21.00 h. in the evening. This
should be harmonized with the neighboring countries. It would make a return trip
Maputo-Witbank the same day possible resulting in considerable savings for the road
transport companies. A 24-hour opening is not really necessary as it would make the
costs higher. The application of information technology at border crossings should be
further developed.
•
The system of permits is still managed by the Ministry of Transport and
Communications and fees are collected by ANFRENA. The Federation believes that the
road transport industry itself should be involved in this process.
•
Cabotage by South African road transport companies is increasing, causing damage to
the local road transport industry. This argument is understandable from the operator’s
point of view. It is, however, questionable if this will help the Mozambican road
transport industry to develop further.
•
Traffic police is invisible and not enforcing legislation making the creation of a level
playing field more difficult.
•
Road traffic legislation is not designed to handle serious traffic violations by drivers and
road transport companies.
•
The importation of tires is still in the 25 percent category. This was done to protect the
national tire industry (Mabor). Now Mozambique is not producing tires anymore for
this purpose, this old legislation is still been applied.
•
Spare parts are very expensive. Scania, Volvo and Mercedes-Benz have stopped their
operations in Mozambique. Spares should fall in the lowest category for import duties.
5.3
Regulatory framework for the transport sector
Mozambique is signatory of several international agreements in the transport sector. The most
important multilateral agreement is the SADC Protocol on Transport, Communications and
Meteorology. Mozambique has been member of COMESA, but abandoned the Commonwealth
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in 1999. It is considering to become member again. Mozambique has also signed bilateral
agreements facilitating international transportation.
The transport legislation in Mozambique is rather outdated and is not accompanying the rapid
socio-economic developments and the radical changes in the management structures of larger
transport infrastructure works and transport operations.
Road Transport
Mozambique has signed the SADC Protocol on Transport, Communications and Meteorology,
which prescribes that Member States shall progressively introduce measures to liberalize their
market access policies in respect of cross-border carriage of goods. 3 The SADC Protocol
stimulates its Member States to conclude appropriate bilateral agreements in this respect as a
step towards implementation of a fully liberalized access to the regional road transport market.
All the agreements should are based on non-discrimination, reciprocity and extra-territorial
jurisdiction. Mozambique has also signed bilateral Road Transport Agreements with South
Africa (1998), Malawi (1998), Swaziland (2002) and Zimbabwe (2003). These Road Transport
Agreements are mainly dealing with the facilitation of international road transport between the
respective countries. The agreements include the establishment of joint committees to monitor
the implementation of the agreements and to solve disputes between the countries in this
respect. Through these committees harmonization of cross border regulations is strived for and
relevant information exchanged between the different parties. The joint committees are
composed by representatives from the Ministry of Transport, Customs, Immigration, but also
traffic police, road inspectors and the road transport industry may be part of the joint committee.
At national level road transport is regulated by Decree no. 24/89 Road Transport Regulations as
approved by the Council of Ministers on August 8, 1989. This decree is amended by Decree no.
15/96. The regulations concern mainly the licensing system for road transport operations. The
main problem is that the regulations mix passenger transport and freight transport. The licensing
authority for national road freight transport is the Provincial Governor or to whom it delegates
the authority to issue licenses. Licenses for international road transport are issues by the
Minister of Transport and Communications or to whom he delegates this authority. In practice,
three types of licenses are being issued: for provincial operations; for inter-provincial
operations; and for international operations. The main issuing authority is the Provincial
3
The SADC Protocol on Transport, Communications and Trade states that this liberalization may go
through three stages: “Member States shall introduce the following liberalization phases: Phase 1
Abolition of restrictions on carriers of two Member States to carry goods on a defined route between – (1)
such States; or (2) in transit across the territory of another Member State en route to a third Member State
or non-Member State: Provided that such transit traffic may only be undertaken if the carrier's vehicle
traverses the territory of its home state. Phase 2: Abolition of restrictions on carriers of one Member State
to carry goods on a defined route between another Member State and a third Member State or nonMember State, irrespective of whether the carrier's vehicle traverses the territory of its home state; and
Phase 3: Abolition of restrictions on carriers of one Member State to carry goods between another
Member State and a third Member State or a non-Member State.”
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Direction of Transport and Communications. The registration costs are 86 USD (July 2004).
The requirements are: a) registration as a commercial company; b) good repute (no criminal
record); c) registration of residence; d) liability insurance; e) presentation of vehicle fleet and
inspection vehicle. The license has a validity of 20 years and may be renewed afterwards. There
are no requirements for financial standing or professional competence of the road transport
operators. The costs of permits to operate road transport are the following: 14 days, 8 USD; 3
months, 47 USD; 6 months, 93 USD; 1 year, 187 USD. Between 1997 and 2001 1526 licenses
had been issued for road passenger operators with a total fleet of 2077 vehicles and 450 licenses
for road freight transport operators.
According to this legislation the maximum and minimum tariffs are prescribed by the National
Commission of Salaries and Prices based on proposal from the Ministry of Transport and
Communications.
Therefore, it is highly recommended:
•
To draft new and separate legislation for road passenger transport and road freight
transport.
•
To introduce qualitative requirements as financial standing and professional
competence for obtaining an operator’s license.
•
To reduce the validity of the license from 20 years to 5 years and establish a system to
check compliance with the basic requirements for obtaining an operator’s license.
•
To liberalize tariffs and prices completely.
•
To remove any quantitative restrictions to access the national and international road
transport market and the issuance of operator’s licenses and permits.
Railway Transport
Management and operation of Mozambique Railways is gradually being handed over to the
private sector by granting concessions to operate specific railway tracks. The principle, here for,
was approved by Resolution on Transport Policy No. 5/96, which permits private capital to
participate in the rehabilitation, operation and management of railway infrastructure and railway
operations.
Decree No. 31/2002 grants the concession for exclusive use, operation and management of the
railway track Maputo-Ressano Garcia to Ressano Garcia Railway, in which Spoornet has a
large share, for a period of 15 years, renewable for five years or additional periods according to
the concession contract. The decree mentions that 2 million US dollars has to be paid by the
concession holder up to seven days before the start of the operations. The fixed annual amount
to be paid is 1.7 millions US dollars. Also a variable amount of 7.5 percent of the gross
revenues of the concession has to be paid yearly, as well as an additional 7.5 percent of the
gross revenues if traffic during the previous year was more than 4 million tons. The service
level of passenger transport has to be approved by the Minister of Transport and
Communications.
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A similar decree (No. 21/2000) had granted the concession for the exploitation of the railway
network in the north – Nacala-Cuamba-Entre-Lagos/Lichinga – to the Corridor of the
Development of the North. However, this concession has never been implemented yet because
of uncertainties among the partners of the concession holders.
In 2004 the management and operation of the railway network in the centre, including the lines
Beira-Machipanda and the Sena Line, has been concessioned to an Indian consortium
RITES/IRCON.
The role of CFM after the concessioning of the main railway lines is not clear. CFM maintains
shares in the consortia, which are concessioned the operations of the main railway lines. This
presence includes the risk of false privatization and may impede efficient and effective railway
operations. The Government of Mozambique is the owner of the railway infrastructure.
There is a need for a new comprehensive Railway Code to integrate the latest developments in
the restructuring of the CFM; the concessions; and bilateral negotiations with railway
companies of neighboring countries to strengthen co-operation and facilitate the operations of
block trains and railway shuttles.
Ports
Mozambican transport policy also envisages the concession and privatization of the port
operations on broadly the same terms as the railway concessions. The ports of Maputo and
Beira have been given into concession and are operating accordingly. The concession of the port
of Nacala has not yet been formalized, as there are internal problems in the consortium which
won the tender to operate the port and is the same consortium to which concession rights had
been granted to operate the northern railway lines. Although the concession agreements for the
port of Nacala and the northern railway lines are separate, both concessions were linked with
eachother. The internal problems are related with the fact that the Malawian partner in the
consortium wants to increase its shares in the consortium. In July 2004 also the secondary port
of Quelimane was given into concession to consortium led by Cornelder Mozambique, which is
also the concession holder of the port of Beira.
The concession holder of the port of Maputo is the Maputo Port Development Company
(MPDC), which consists of the British Mersey Docks and Harbour Company, the Swedish
company Skanska BOT, the Portuguese company Liscont Container Operators holding 51
percent and Mozambique Railways South (CFM-Sul) and the Government of Mozambique with
33 and 16 percent, respectively. MPDC started its operations in 2003 and plans to invest 70
million US dollars between 2003-2006.
Maritime and Coastal Shipping
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In 2002 new regulations on maritime transport were approved. Decree No. 18/2000 regulates
the licensing of maritime transport as far as coastal shipping is concerned. In principle, coastal
shipping between Mozambican ports is only permitted for national vessels or vessels contracted
by Mozambican persons or institutions. The Minister of Transport and Communications may,
however, authorize a license to other companies with Mozambican agents if this is in the social
or economic interest of the country. A license is valid for 10 years and may be subsequently
renewed by ten years. The cost of a new license is about 1,500 USD; renewal costs 1,100 USD.
Air Transport
The air transport is in stage of deregulation and liberalization. In 1999 Mozambican Airlines
(LAM), which had just been privatized, obtained a five-year concession to operate flights
between Maputo, Beira, Quelimane, Namula and Pemba. In 2004 new tenders will be launched
for operating international and domestics flights in Mozambique.
Also the airports will be privatized. It is expected that this will take place in 2004-2005.
Railway Station in Maputo; July 2004
Pamphlet at CFM in Mozambique; July 2004
Pamphlet at CFM in Mozambique; July 2004
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Pamphlet at CFM in Mozambique; July 2004
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6
TRANSPORT AND LOGISTICS SERVICES
There are no reliable statistical data available about volumes and directions of transport volumes
in Mozambique after 2001, in particular concerning the road transport sector. Before that date,
Mozambique Company for Railways and Ports published regularly detailed data on railway
freight and passenger flows and directions and port statistics. The latest officially published data
are from the National Institute of Statistics: 2001 Transport and Communications Statistics and
Statistical Yearbook 2002.
According to the statistical data the total amount of freight transport services is relatively
constant since 1994 and varies between 1.3 and 1.5 billion tonkilometers. The transport which
has been increasing most is the road transport sector, which multiplied its output in
tonkilometers by six times from 1994 to 2001. Remarkable also is the increased output on the
Nacala corridor from 88 millions tonkilometers in 1999 to 183 millions tonkilometers in 2001.
Table 19
Mozambique: Freight Transport Services, 1994-2001 (in millions of
tonkilometers)
1994
1995
1996
1997
1998
1999
2000
2001
1362
1363
1464
1538
1425
1448
1272
1507
Railways
638
886
983
896
775
722
605
774
CFM-Sul
323
487
499
498
471
448
224
337
CFM-Centro
234
289
363
279
188
186
231
255
CFM-Norte
80
109
121
117
116
88
149
183
CFMZambezia
1
1
1
2
0
0
0
0
Maritime
345
83
66
118
113
175
203
247
Road
Transport
49
76
129
161
175
193
224
245
Air Transport
10
9
8
34
6
7
7
7
320
309
279
330
356
352
233
234
Total
Pipeline
Source: INE, 2001
The handling of cargo in the ports of Mozambique increased from 6,167,000 tons in 1994 to
9,047,000 tons in 2001.
Table 20
Total
Mozambique: Handled Cargo in Ports, 1994-2001 (in 1000 tons)
1994
1995
1996
1997
1998
1999
2000
2001
6167
7508
8405
8960
7606
7741
7717
9047
Source: INE, 2001
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The number of passengerkilometers increased dramatically from 11,045 millions in 1994 to
37,096 millions in 2001. The largest share comes from interurban road passenger transport (98.9
percent). The end of the civil war had apparently boosted people’s mobility enormously.
Table 21
Mozambique: Passenger Transport Services, 1994-2001 (in millions of
passengerkilometers)
1994
1995
1996
1997
1998
1999
2000
2001
11045
15448
18269
21839
26587
27385
37202
37096
Railways
124
312
326
403
155
129
142
142
Maritime
4
5
5
7
6
7
2
2
Road
Transport
10484
14747
17576
20773
26114
26890
36681
36680
Urban
4023
5269
5452
5066
5643
6923
9941
Interurban
6460
9478
12124
15707
20471
26890
20107
26739
434
384
362
656
312
360
378
272
Total
Air Transport
Source: INE, 2001
Table 22 shows the transport output by mode in tons. Railway transport increased from 2.6
million tons in 2000 to 3.3 millions tons in 2001. Maritime transport declined dramatically from
393,049 tons in 2000 to 96,467 tons in 2001. Road transport increased from 87,192 tons in 2000
to 185,023 tons in 2001. The actual amount of road transport is, however, much and much
higher. Only no official data seem to be available in this respect.
Table 22
Mozambique: Transport by mode in tons 2000-2001
Mode of Transport
2000
2001
690033
600000
87192
185023
Railway Transport
2639276
3280335
Maritime Transport
393049
96467
3480
3463
3813031
4165288
Pipeline
Road Transport
Air Transport
Total
Source: INE, 2002
Although from the same source as Table 22, the figures on rail freight transport from Table 23
differ considerably from those in Table 22. Table 22 gives a total of railway freight of 2,639,276
tons in 2000 and 3,280,335 in 2001; Table 23 3,455,000 and 4,153,000, respectively. The
difference is probably that Table 22 provides the data on only international transport.
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As can be seen from Table 23, railway freight transport is for 84 percent international transport
and for 16 percent domestic. CFM-Sul transported in 2001 70 percent of total output of CFM. In
1994 the share of CFM-Sul was still 61 percent.
Table 23
Mozambique: Railway Freight Transport in 1000 tons, 1994-2001
1994
1995
1996
1997
1998
1999
2000
2001
2458
3110
4085
3845
4119
3961
3455
4153
401
340
452
617
834
676
624
664
International
2057
2770
3633
3228
3285
3285
2831
3489
CFM-Sul
1500
1826
2667
2607
3082
3073
2307
2904
National
279
151
272
363
568
511
393
448
International
1221
1675
2395
2244
2514
2562
1914
2456
CFM-Centro
794
1063
1174
964
765
650
789
886
53
109
72
119
147
95
100
125
International
740
954
1102
845
618
556
689
761
CFM-Norte
156
215
237
250
270
232
351
362
National
60
74
101
112
117
64
123
89
International
96
141
136
139
153
167
228
273
CFMZambezia
9
6
7
24
3
6
8
1
National
9
6
7
24
3
6
8
1
International
0
0
0
0
0
0
0
0
Total Freight
National
National
Source: INE, 2001
Remarkable is the rapidly declining number of passengers by train from 5,475,000 in 1995 to
2,774,000 in 2001 despite the growing mobility of the Mozambican population. Deteriorating
services are the main cause for this decrease. This is further confirmed by an article in the
Mozambican newspaper ‘Notícias’ from 28th of July 2004 which mentions the fact the
passenger transport service between Maputo and Ressano Garcia has been inoperational for
several months because of lack of rolling stock.
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Table 24
Mozambique: Railway Passenger Transport in 1000 passengers, 1994-2001
1995
1996
1997
1998
1999
2000
2001
Total Passengers
5475
5677
6820
4573
4043
2895
2774
National
5447
5643
6784
4539
4007
2875
2738
28
35
36
34
36
21
35
CFM-Sul
3004
2974
4092
3212
2596
1469
931
National
2977
2940
4056
3178
2560
1448
896
International
28
35
36
34
36
21
35
CFM-Centro
1416
1796
1472
537
471
540
870
National
1416
1796
1472
537
471
540
870
CFM-Norte
1049
903
1252
824
976
886
973
National
1049
903
1252
824
976
886
973
CFM-Zambezia
5
4
4
0
0
0
0
National
5
4
4
0
0
0
0
International
Source: INE, 2001
In the study SADC Regional Freight Transport Corridors an estimation is made based on a
survey on the volume and directions of commodity flows in the SADC region. For Mozambique
the following interesting results were found:
Table 25
Mozambique: Rail and Road Freight Transport (in tons)
Destination
Tons
Origin
Tons
Total
Ressano Garcia Line
To Maputo
1482771
From Maputo
34746
1517517
Goba Line
To Maputo
257839
From Maputo
3456
261295
Limpopo Line
To Maputo
38289
From Maputo
19783
58072
To Beira
541100
From Beira
203200
744300
To Nacala
55800
From Nacala
115200
171000
376385
2752184
Railway Transport
Machipanda Line
Nacala Line
Total railway
transport
2375799
Road Transport
Ressano Garcia
To Maputo
760760
From Maputo
80808
841568
Lomahasha
To Maputo
151242
From Maputo
27300
178542
Machipanda
To Beira
239904
From Beira
125440
365344
Nyamapanda
To Harare
254016
From Harare
56448
310464
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Zobuè
Nyachi
Milange-Quelimane
Destination
Tons
Origin
Tons
Total
To Beira/Harare
66640
From Beira/Harare
159936
226376
To Nacala
131712
From Nacala
75264
206976
To Quelimane
75264
From Quelimane
112896
188160
Total road transport
1679538
638092
2317630
Grand Total
4055337
1014477
5069814
Source: Compiled table from SADC Regional Freight Transport Corridors; 2001.
Although the figures in absolute sense are not very reliable, the direction of the flow indicates
clearly the imbalance that exists between cargo coming from the neighboring countries and
cargo that is going to those countries. In-coming cargo is almost four times more than outgoing. This imbalance is, obviously, one of the reasons for the high transport costs in
Mozambique. The figure of 2,317,630 tons along the main transit routes in 2000 is clearly much
closer to the reality than the 272,215 tons from the official statistics.
As it is important for policy development to dispose over reliable data – think for instance at
granting a concession for a toll road based on actual traffic flows and traffic forecasts - , it is
recommended that the Ministry of Transport and Communications together with the National
Institute of Statistics (INE) will carry out on regular basis a road haulage survey. Another way
of collecting data, at least for the operators registered in Mozambique, is to directly link the
issuance of the road service license with the obligation to provide statistics on a regular basis to
the issuing agency and create a legal basis for this obligation.
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7
COSTS AND DELAYS OF TRANSPORT AND LOGISTICS
Railway Transport
In the several studies like the “SADC Freight Transport Corridors” from 2001 the following
rates for railway transport were found:
Table 26
Rates for railway transport for selected port corridors (in US dollars)
Line
Distance
14 tons/6 m
22 tons/12m
36 tons/B/Bulk
616
393
620
600
Maputo – Harare
1228
960
1686
N/A
Maputo – Blantyre
1780
N/A
N/A
N/A
Maputo – Lusaka
1996
N/A
N/A
N/A
Maputo - Lubumbashi
2588
N/A
N/A
N/A
Beira – Harare
593
500
1000
N/A
Beira – Lusaka
2027
1033
2021
N/A
Nacala – Lilongwe
995
896
1408
Nacala - Blantyre
806
840
1320
Maputo - Johannesburg
Source: SADC Freight Transport Corridors 2001 and other studies
The prices on the line Maputo – Johannesburg varied between 0.027 USD per tonkm for bulk
and 0.046 USD per tonkm for other cargo. Maputo – Harare using the Chicualacuala line was
more expensive with 0.056 USD per tonkm for general cargo. The Beira Corridor was very
expensive with 0.06 USD per tonkm. Beira – Lusaka was much cheaper with 0.036 USD per
tonkm for general cargo. Nacala – Lilongwe costs 0.064 USD per tonkm and Nacala – Blantyre
0.074 USD per tonkm.
Railway transport applies very variable prices for container transport in Mozambique. Table 27
shows the prices for railway transport in Mozambique for a full container and an empty
container:
Tabel 27
Mozambique: Prices for transport of containers by rail (in US dollars)
Line
Km
Full container
Full container/km
Empty container
Maputo–Ressano Garcia
88
59.20
0.67
25.00
Maputo – Goba
74
50.70
0.69
35.00
Maputo – Chicualacuala
534
159.50
0.30
101.60
Beira – Machipanda
319
210.00
0.66
190.00
Nacala – Entre Lagos
618
745.00
1.21
225.00
Source: Official prices Mozambique Railways
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The price per container through the Nacala corridor costs is four times more expensive than
transport of a container from Maputo to Harare and twice as expensive as the Beira Corridor.
This has certainly to do with the duration of the trip and the state of the railway infrastructure
and availability of rolling stock. Rail cargo sometimes takes 14-20 days from Nacala to Blantyre
due to congestion, derailments, equipment failures and administrative confusion. From the
shipper’s perspective, there is lack of certainty and commitment by the railways, and the general
lack of port service reliability in Nacala.
The project of the rehabilitation of the Sena Line focuses on 0.025 USD per tonkm for coal
transport from Moatize to Beira and 0.06-0.08 USD per tonkm for general cargo.
The average costs of railway transport in Mozambique are more than 0.05 USD per tonkm,
which is about 200 percent of the ‘normal’ price (0.025 USD per tonkm).
Mozambique Railways is not only expensive, but the performance is also still unreliable.
-------------------------------------------------------------------------------------------------------------------Tariff discrimination
In July 2004 the manager of the Maputo Granite Terminal complained about tariff
discrimination applied by Spoornet regarding the transport of granite by train from Rustenburg
to Maputo. The rates offered were varying between R 246,60 and R 279,27 per ton, which is
much higher than the rate of R 145 offered to Richards Bay, which is a longer distance than to
Maputo. The ton per kilometer rate offered amounts R 0,44 which is at least 50% higher to other
rates offered by Spoornet, CFM and neighboring countries. The arguments put forward by
Spoornet like having to switch from electric to diesel can hardly justify this huge difference.
The manager has already been negotiating for 2 years with Spoornet and is now convinced of
the fact that this prejudiced and monopolistic approach to pricing and the provision of services
is being applied to other commodities as well. This results in placing a strangehold on a key
strategic growth area for Mozambique, protecting the domestic market in South Africa.
Therefore, the Maputo Granite Terminal and some granite producers are now looking
intensively to shift from railway transport to road transport.
Road Transport
The “SADC Freight Transport Corridors” from 2001 found the following rates for road
transport:
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Table 28
Rates for road transport for selected port corridors (in US dollars)
Line
Distance
14 tons/6 m
22 tons/12m
30 tons/B/Bulk
Maputo - Johannesburg
599
625
625
625
Johannesburg – Maputo
599
950
950
950
Maputo – Harare
1648
672
1344
1344
Harare - Maputo
1648
504
1008
1008
Maputo – Blantyre
1675
1190
2380
2380
Blantyre - Maputo
1675
630
1260
1260
Maputo – Lusaka
1988
1050
2100
2100
Lusaka - Maputo
1988
532
1064
1064
Maputo - Lubumbashi
2474
1470
2940
2940
Lubumbashi - Maputo
2474
1260
2520
2520
Beira – Harare
565
600
1200
Beira – Lusaka
1024
1800
3600
3800
Beira – Blantyre
830
800
1600
1750
Blantyre - Beira
830
400
800
1600
Source: SADC Freight Transport Corridors 2001
A survey among freight forwarders and transporters carried out in July 2004 gave the following
results concerning prices for road transport:
Table 29
Rates for road transport on selected corridors 2004 (in US dollars)
Line
22-30 tons
Average price per tonkm
625-950
0.040-0.060
Maputo – Harare
1008-1344
0.023-0.031
Maputo – Blantyre
1260-2380
0.029-0.055
Maputo – Lusaka
1064-2100
0.021-0.041
Maputo – Lubumbashi
2520-2940
0.039-0.046
Beira – Harare
1200
0.082
Beira – Blantyre
1700
0.079
Beira – Lusaka
3700
0.139
Maputo – Johannesburg
Source: Survey 2004
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The variations in costs for road transport are enormous. From 0.021 USD per tonkm to from
Maputo to Lusaka until 0.139 USD per tonkm for transport between Beira and Lusaka.
Remarkable are the substantial lower cost for road transport from Maputo (average 0.045 per
tonkm) in comparison with road transport from Beira (average 0.09 USD per tonkm).
Apparently, the competition in the road transport market is not outbalanced yet. The wide
variations of prices are also caused by the imbalance of the commodity flows. Many forwarders
and road transporters calculate the tariffs based on a return trip as well. If they succeed to obtain
backload, prices may vary substantially and will, in general, be much lower than usual.
What has not been assessed, however, is the quality of service that is to be provided by the road
transport company or forwarder. In discussions with forwarders and road transport companies in
July 2004, it became clear that there are huge differences in quality to be delivered to the
shipper. Just-in-time shipments are much more expensive than shipments which will arrive
some day, as one of the traders informed.
In the present situation the road transport sector in competitive with the railway sector because
of its flexibility and higher degree of reliability, although the prices in the road transport sector
are higher with an average 0f 0.07-0.08 USD per tonkm.
Maritime Transport and Coastal Shipping
Sea cargo from Asia to one of the ports of Mozambique costs between 2,550-3,250 USD per
container and from Europe between 2,650-2,950 USD. The main challenge for Mozambique is
to attract more international shipping lines to its ports. Presently, the major Port of Maputo is
receiving regular calls of six international shipping lines for break bulk and six for containers.
The majority of the shipping lines are still using the Port of Durban in South Africa as a hub
with feeder services to the ports of Mozambique.
The costs of coastal shipping are very high, as the following table shows:
Table 30
Costs of Coastal Shipping in Mozambique (in US dollars)
Line
Tariff in USD
Maputo – Dar-es-Salam
845
Maputo – Beira
995
Maputo – Nacala
1230
Maputo – Quelimane
1340
Source: Mainstreaming Trade; 2002
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The coastal shipping market is still protected by legislation and cabotage is practically not
allowed. Complete liberalization of coastal shipping would most probably reduce the tariffs for
coastal shipping and mean a boost for national integration as well.
A fully operational logistics corridor concept, integrating ports, maritime and coastal shipping,
railways, road transport, terminals and warehouses and distribution centers is still far from
implementation in Mozambique. Integrated modal connections and multimodal transport hardly
exist. The Mozambican Government and the Mozambican business community, however, have
recognized this weakness and are in the process of developing the corridor concept in a publicprivate partnership. In chapter 9 more attention will be paid to this concept.
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8
CUSTOMS AND TRADE ADMINISTRATIVE PROCEDURES
8.1
Customs administration and Customs procedures
Table 31 shows the evolution of Customs revenues from 1995 to 2001 in relation with the value
of imports and GDP. The total Customs revenues doubled from 1995 to 2001 from 102.5
millions US dollars to 213.5 millions US dollars. This increase is mainly caused by the income
from VAT. Customs duties remained at the same level. The share of Customs revenue in GDP
increased from 3.6 percent in 1997 to 6.0 percent in 2001.
Table 31
Fiscal performance of Customs administration, 1995-2001
1995
1996
1997
1998
1999
2000
2001
(In million of US dollars)
Circulation Tax/VAT
10.2
10.7
19.6
21.5
74.1
112.3
104.9
Consumption Tax on Imports
14.4
14.2
15.5
18.2
16.9
14.3
12.2
Custom Duties
64.8
62.5
70.3
80.2
81.5
82.3
71.22
Total Customs Revenue
102.5
106.3
125.4
146.1
198.1
236.0
213.5
Taxes on Imports
89.3
87.5
105.3
119.9
172.5
208.9
188.3
Value of Imports
727
783
760
781
790
821
832
(In percent)
Customs Duties as a Share of Imports
8.9
8.0
9.0
10.2
10.3
10.2
8.6
Total Taxes on Imports as a Share of
Imports
12.3
11.2
13.9
15.4
21.9
25.4
22.6
Customs Revenue as a Share of Total
Fiscal Revenue
-
-
-
-
43.9
52.7
51.1
Custom Revenue as a Share of GDP
-
-
3.6
3.8
4.9
6.1
6.0
Source:
Anthony Mwangi, Final report of the survey on Customs reform and modernization in Mozambique; March 2003.
The number of Customs officials is about 1,000. The Customs Department is planning to
increase this number to 1851 justifying it by the need to enhance staff with full management
capacity, to enhance operations in the areas of anti-corruption operations, legal investigations,
special operations, post importation audits, and to reopen 450 closed border stations.
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One of the most important agencies which should facilitate foreign trade and transport is the
Customs administration. Mozambique is implementing a ambitious Customs reform program
since 1995. The main objectives of this program are: a) increase budget revenue; b) facilitate
legitimate trade by combating corruption and smuggling; c) create a modern, effective, and
reliable Customs administration.
To manage this reform process the Minister for Planning and Finance created in 1995 the
Technical Unit for Customs Reform. Mozambique did adopt for a revolutionary and innovative
approach by bringing in external expertise to manage Customs operations and Pre-Shipment
Inspection (PSI) services to assist in the determination of the dutiable value of the imports.
Crown Agents is directly involved in managing the Customs operations. In 2000 47 Crown
Agents consultants were in the field to work in the Customs administration. This number has
been reduced to 11, of which 9 on sensitive operations. The idea is that Crown Agents will be
working in the Customs administration until a new Central Revenue Authority will be created in
2005, in which Customs would be integrated.
The Pre-Shipment Services are being carried out by Intertek Testing Services. The PSI
Company is checking for value, tariff coding, quantity of covered imports, and identified
prohibited imports. The PSI fees are paid by the Customs administration. Since 1999 risk
management techniques are being used working within the information system that the Customs
administration is using. The scope of PSI inspections has been further reduced since 2003 to
commodities that have been identified as sensitive. If goods for import feature on the sensitive
product list, the importer notifies the PSI company direct by lodging the supplier’s pro forma
invoice, and notifies his supplier of the need to submit the goods for inspection. The PSI
Company carries out a physical inspection of the goods as requested by the exporter. After
approval, the PSI Company issues a certified single document, that the importer will use for
clearance of the goods at Customs. Importers are liable to a penalty payment of 30 percent of
the value of imported goods selected for PSI that lack PSI certificates on arrival.
As the trade regime has been liberalized since 1986, the number of tariff rates and the tariff
levels was reduced. There are five tariff rates: 0 percent for essential goods; 2.5 percent for raw
materials; 5.0 percent for fuel and capital goods; 7.5 percent for intermediary goods; and 25
percent for consumption goods. In 1999 Mozambique introduced a 17 percent VAT. Excise
duties are levied on automobiles, luxury goods, alcoholic beverages and tobacco products.
As tariff barriers to trade seem te be removed in time, there are still quite a number of non-tariff
barriers, which impede the seamless flow of trade transactions: complex standards testing,
labeling and certification requirements, government procurement rules, a lack of adequate
intellectual property rights, corruption and smuggling.
The granting of duty exemption is limited to imports covered by the code of Fiscal Benefits,
Free Trade Zones (FTZ), NGO’s dealing with humanitarian aid and medicines, Diplomatic
Missions, and Multi-lateral Organizations. Mozambique has only two FTZ: MOZAL/Beluzone,
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about 16 kilometers from Maputo, and BELITA, which manufactures textile products and
apparels in Beira. The FTZ law requires that 85 percent of the production be exported duty free.
In 2002 a new Regulation on Transit has been issued by the Minister of Planning and Finance.
In the global guarantee system the amount of the needed guarantee is about 10% of the customs
value. Traders comment that the implementation of this law still faces many obstacles. The duty
drawback system is not in use in Mozambique.
In the Maputo Corridor in the south of Mozambique the border controls at Ressano Garcia and
Namaacha, the border points with South Africa and Swaziland, respectively, are weak and lack
proper infrastructure including communication facilities. Trucks importing goods to
Mozambique using these border posts must proceed for Customs clearance to the Matola Cargo
Terminal (FRIGO), a privately owned inland clearance terminal on the outskirts of Maputo.
Matola Cargo Terminal na FRIGO in Matola; July 2004
The terminal is charging storage/parking fees according the following schedule:
•
Less than two days: 0.28 percent of the Customs value CIF
• More than two days: 0.7 percent of the Customs value CIF
For bulk goods an extra charge of 5 percent is levied. The minimum amount that has to be paid
is 560,000 meticais (24 US dollars) for packaged commodities and 590,000 meticais (26 US
dollars) for bulk.
Traders are complaining about long waiting times and the fact that these tariffs are much too
high, especially for valuable goods.
There is not much competition in clearing agents. The largest one is ADENA, the state-owned
national clearing agent with offices in Maputo, Beira, Nacala and Tete. The website of
Mozambican Customs mentions further 7 other clearing agents in Maputo; 3 in Beira; and 1 in
Tete. Although there are more clearing agents, of course, this undermines the quality of the
services provided and negatively affects clearance time.
FIAS estimated in 2000 the average clearing time in Mozambique at 18 days. According to
Crown Agents average clearance times have since then fallen to 4-7 days (land 4 days; sea 5
days; air 6 days), based on the time lapsed between submitting the Customs declaration and
collecting the delivery order, which can be done only after duties have been paid. However,
importers still mention 15 days as a usual waiting time for clearance of the goods.
Matola Cargo Terminal na FRIGO in Matola; July 2004
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From the other side it is important to take into account the fact that some traders, forwarders and
transporters still do not comply with all documentary requirements and blame delays because of
this to inefficient governmental officials like Customs. Some used to arrange their things ‘on
their own way’ and if this does not work anymore, they got upset and blame the authorities for
deliberately the dispatching process.
Traders, forwarders and transporters still complain that there is a lack of co-ordination among
and between the agencies involved in border crossings and with the respective authorities of the
neighboring countries.
The Trade Information Management System, as used by Customs, is not implemented to its full
capacities and electronic data exchange of Customs and other border agencies hardly takes
place.
The following issues related with Customs need intervention and improvement on short term:
58
•
On July 23, 2004 the Public Relations Department of the General-Directorate of
Customs informed that during the first semester of 2004, 3500 billions of meticais
(151,844 US dollars) had been collected (Customs duties, specific consumer tax, VAT,
etc.). This is an increase of 21 percent in relation with the revenues of the first semester
of 2003. Now, to increase budget revenue is one of the targets of Mozambican Customs.
And this target has been achieved. However, the other target is as well as important, and
maybe even more important: the facilitation of legitimate trade. More efforts should be
spent in this direction.
•
Sanctioning of corrupt Customs officials is hampered by the fact that corruption must
be dealt with under criminal law, where Customs Court has jurisdiction. Delays in the
Administrative Court are lengthy.
•
Electronic Direct Trade Input should be made possible as soon as possible.
•
Management of key border posts and terminals is lacking efficiency and effectivity.
•
Border posts lack basic infrastructure as water and electricity, not to mention
telecommunication, parking space, banking facilities, etc.
•
Opening hours at important border crossings should be 24 hours a day and not be
restricted to day-time.
•
Harmonization with Customs procedures of neighboring countries is urgently needed
•
The Trade Information Management System (TIMS) is not installed at all Customs
offices and is not optimally being used in places where it has been installed.
•
Electronic payment of taxes and duties should be made possible.
•
Trade information should be flown between Customs and other trade stakeholders such
as freight forwarders, importers, exporters, port operators and transport companies.
•
Activities of Customs, (border)police, immigration, transport authorities, phyto-sanitary
inspection institutions and local administration should be co-ordinated to facilitate
border crossings.
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8.2
Trade regulations and trade procedures
Mozambique is still in the process to liberalizing its trade and simplifying export and import
procedures.
Exchange controls have gradually been relaxed and the exchange market has been opened to
market forces. Several legal instruments have been put in place to improve fiscal policy.
Corporate tax is 32 percent; VAT 17 percent; import duties vary from 0 to 25 percent; exports
are exempt from duties. The Technical Unit for Customs Reform (UTRA) has the responsibility
to supervise, control and register fiscal revenues in Customs areas.
A Single Document (DU, Documento Único) was created in 1998 to support all foreign trade
operations in Mozambique. It revokes legislation on the licensing system for foreign trade
operations, model Customs dispatch form, guides and other documents concerning Customs
clearance that were previously used by the Customs service. This document is used for import,
export, pre-shipment inspection.
Foreign trade in Mozambique is regulated by Decree number 56/98, of November 11th and
Ministerial Diplomas numbers 202 and 203/98, both of November 12th. All importers and
exporters are required to register. After registration a foreign trade operator card is attributed.
Certificates of origin for exporters are issued through the Mozambique Chamber of Commerce
or the Provincial Departments of Industry and Trade (in North and Central Mozambique) upon
submission of a copy of the commercial invoice or the Single Document.
The following issues need urgent intervention and improvement in order to facilitate trade in
Mozambique:
•
Company registration is too time-consuming and too costly.
Nature of Procedure (2003)
4
Procedure
Duration
(days)
Duration
(days)
through
CPI 4
US$ Cost
(minim)
US$ Cost
(minim)
through
CPI
Obtain certification of unique name
1
2
1
3.2
3
Open a provisional bank account
2
1
1
0
0
Incorporate the company through a
public deed executed at a local
Notary
3
5
1
100
0.3% share
capital
Register provisionally
4
19
n/a
n/a
n/a
Publish articles in the official gazette
5
30
15
50
50
Final registration (Certificate of
6
30
15
100
0.5% share
CPI is the official Investment Promotion Centre in Mozambique.
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Nature of Procedure (2003)
Procedure
Duration
(days)
Duration
(days)
through
CPI 4
US$ Cost
(minim)
Incorporation)
US$ Cost
(minim)
through
CPI
capital
Apply for an operational license
7
40
30
112.5
115
Receive inspection from Ministry of
Health
8
0
15*
0
0
Receive inspection from the Fire
Department
9
0
15*
0
0
Declaration of beginning of activity
at the tax department
10
15
n/a
0
n/a
Register for VAT
11
7
7
0
0
Declare the beginning of activity at
the provincial Employment Center
12
1
n/a
2.1
Prepare a job description chart
13
1
n/a
0
n/a
Register workers with the social
security system
14
1
1
0
0
Subscribe a workmen’s
compensation insurance coverage
15
1
1
0
0
Totals:
15
153
87
367.8
Varies
n/a
Source: Austral Consultória e Projectos
60
•
Company inspections are not always been carried out in a proper way; procedures are
unclear and fines can not always be justified.
•
Costs of administrative procedures are high and time-consuming: sanitary and phytosanitary certification; certification of origin; export documentation; certification of
quality and standards testing; labeling; government procurement regulations; etc.
•
Administer and enforce the rules of origin properly and more efficient.
•
Import exemption authorization is too time-consuming. In the first semester of 2004
Customs administration received 1096 requests for exemptions for payment of import
duties; 555 requests have been authorized and 25 rejected; 516 are still being analyzed.
•
Reimbursement of VAT takes too long.
•
Customs clearance is too time-consuming. In particular, the process of the clearance of
perishable goods should be accelerated. During the first semester of 2004, the
Inspection Unit of Customs visited 7 Customs Houses where commodities were found
which had been there for too long time and whose expiry rate had already passed.
•
The labor legislation is not flexible for promoting production and trade. It is difficult to
hire foreign managers; to work overtime and in shifts; retrenchment of labor is costly.
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And finally, it is not only improvement of legislation, which is important. Applying existing
laws and regulations properly would also contribute to improve the conditions for trade to
operate. The following example comes from a trader who communicated the following on July
27, 2004:
-------------------------------------------------------------------------------------------------------------------“As always I could list a million screw-ups with exports but to illustrate what a basket case this
place is, see the two examples listed below that have happened to TCT. I use my own company
examples as I am allowed to do so but every exporter faces the same crap as I do.
Exporting a container of Parquet to Italy, the same customer I have been exporting to for the last
10 years. Customs decides that I have to have a L/C prior to export despite the fact that I have a
“boldaro” (proof of bank transfer) showing that my customer has paid for the export in advance,
as he has been doing for the last 10 years. Customs insists rejecting the process twice, takes 2
personal interventions to explain that payment PRIOR to shipment is sufficient guarantee. Total
time process going back and forth – 4 days.
Exporting a container of furniture to SA. The customer (one of the contractors on the
Gorongosa – Caia road) pays me in US$ cash which I deposit in the bank. Customs refuses cash
foreign currency for exports, must be transferred from outside the country. 7 personal
interventions, including phoning the Regional Director 3 times to get the problem solved. Time
to get the process through customs – 5 days.
None of the customs refusals were based on law, we live at the continual whim of individuals
whose power is absolute and most companies live in fear of victimization if they demand their
rights.
Customs, like the whole of the finance department, are regressing to the point of absolute
lawlessness.
I repeat, the above is in the last 10 days.
A luta continua.”
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9
TRANSPORT AND DEVELOPMENT CORRIDORS
9.1
The concept of development corridors in Mozambique
In the past Mozambique used to be a transit country for import and export of South Africa,
Swaziland, Zimbabwe, Zambia and Malawi, using the ports of Maputo, Beira and Nacala. The
main rail and road connections in Mozambique are, therefore, in east-west direction linking the
ports with the hinterland in the neighboring countries. In the eighties the Beira Corridor
Authority was established to lead the process of socio-economic development of the Beira
Corridor: rehabilitation of the port of Beira; investments in railways and roads; promoting
industrial and agricultural development along the corridor; provision of social infrastructure.
However, the civil war and lack of experience with this development concept, made a failure of
this adventure. Nevertheless, lessons were learned for the future, be it at high costs.
The concept of development corridors in Mozambique experienced a revival in the mid-1990s
when the Spatial Development Initiative (SDI) was introduced by the South African
government. The idea behind SDI was to attract export-driven investments and stimulate publicprivate partnerships to areas with under- or unutilized potential. South Africa was broken free of
its apartheid era and engaged to integrate with the world economy and Mozambique had
emerged from a devastating 16 years of civil war. South Africa was looking for export-led
growth and Mozambique facing the challenge to rebuild its economy. The result was the
formulation of a plan to develop the Maputo Corridor in order to restore trade and investment
ties that had been destroyed during the apartheid in South Africa and the civil war era in
Mozambique.
As the SADC region is facing serious economic and development challenges with growth rates
less than 2 percent over the last three years and deepening poverty, the success of the Maputo
Development Corridor stimulated the emergence of a wide range of SDIs being implemented
through co-operation among Southern African governments who wanted to unlock their
country’s potential by creating more favorable conditions for export-driven private investment
and their integration in the world economy. The SDI methodology is becoming an integral part
of SADC’s programs and the Development Bank of Southern Africa (DBSA) has established a
dedicated African Partnerships unit (NEPAD – New Partnership for Africa’s Development) to
strengthen inter-government and public-private sector relationships.
Mozambique is paying much attention to the corridor concept in its development policy by
concentrating efforts on the Maputo Corridor, the Beira Corridor - including the development
of the Sena Railway line and the Zambezi valley - and the Nacala Corridor. The important
challenge is to link import, export and transit traffic from and to neighboring countries making
use of the Mozambican corridors with national socio-economic development and integration.
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9.2
The Maputo Corridor
The concept behind the Maputo Development Corridor is an integrated approach towards the
development of the geographical area covering the Maputo Corridor.
The integrated approach comprises of the following components:
•
Toll Road N4 linking South Africa and Maputo
•
Commercialization of the Port of Maputo
•
Commercialization of railway connections Maputo–South Africa and Maputo–
Swaziland
•
Attraction major industries and establishment Free Industrial Zones
•
Improvement Customs facilities
•
Upgrading telecommunications and electricity networks
•
Improvement of business climate by facilitating customs procedures and reducing red
tap, bureaucracy, excessive administrative procedures
Toll Road N4 Maputo-Witbank
The 503 km N4 Highway between Maputo and Witbank was opened as a toll road in 2000 and
is operating successfully. It has been concessioned to Trans African Concessions (Pty) Ltd. The
main problem the concession holder is facing is damage to the road because of overloading, but
measures have been put in place to overcome this problem. The toll road has five toll plazas and
average daily traffic passing through these plazas is about 60,000 vehicles.
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Commercialization of the Port of Maputo
The Port of Maputo has an installed capacity of handling more than 10 million tons per year:
general cargo 2,500,000 tons; coal 2,500,000 tons; fuel 2,000,000; steel 900,000 tons; aluminum
more than 1,000,000 tons; citrus 750,000 tons; sugar 600,000 tons; cabotage 500,000 tons; grain
400,000 tons; containers 35,000 TEU. In the past up to 12 million tons had been handled.
Presently, it is using about 40 percent of its capacity.
The Mozambican deepwater ports of Maputo and Matola have been conceded to the Maputo
Port Development Company (MPDC), a consortium in which foreign investors have a majority
share. The concession, which commenced on 14 April 2003 has a duration of 15 years, with a
10 year extension option. MPDC has been granted the rights to finance, rehabilitate, operate,
manage, maintain, develop and optimize the port concession area. The company is vested with
the powers of port authority and is responsible for marine operations, towage, stevedoring,
terminal and warehousing operations as well as port planning and development. A three year
rehabilitation program with a total investment of 70 millions US dollars is being implemented.
Important elements of this program are the deepening of the access channel up to 12 m for
panamax size vessels of 50,000 TDWT; the procurement of mobile harbor cranes; construction
of new port entrance linking directly onto the N4; upgrading of roads and rail lines in the port;
and berth repairs.
The main challenge for the Port of Maputo is to attract international shipping lines and increase
the frequency of the calls. Presently, most of the shipping lines are still using the port of Durban
as a hub. The Port of Maputo was in January 2004 served by the following shipping lines:
Table 32
Shipping lines serving the Port of Maputo (January 2004)
Name
Geographical area served
Frequency
Break-Bulk Services
Gearbulk
North West Europe
MACS Line
North West Europe
Messina Line
East Africa, Red Sea & Mediterranean
MUR
Mediterranean, India, South Asia
Southern Chartering
Far East
IVS Lauritzen
Far East, North Europe
Container Lines
Unifeeder
Southern Africa Coastal
Weekly
MSC
East Africa, Indian Ocean, South Asia
10 days
Global (GCL)
East Africa, Gulf, South Asia
10 days
MACS
North West Europe
Monthly
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Name
Geographical area served
Frequency
Messina Line
East Africa , Red Sea, Mediterranean
14 days
P&O Nedlloyd
East Africa, Gulf, South Asia
14 days
Source: MPDC 2004
Commercialization of railway connections
The Government of Mozambique has granted an international consortium with South Africa’s
rail utility Spoornet the right to operate the line from Maputo to Ressano Garcia on the border
with South Africa. Important component of the concession agreement is the commitment to
invest 10 millions US dollars to rehabilitate the Mozambique section of the rail line bringing it
up to the same standards as the South African line. The Spoornet consortium plans to start its
operations in 2004. Table 31 shows the main characteristics of rail transport on the Ressano
Garcia line.
Table 33
International Traffic Maputo-South Africa 2000 (Ressano Garcia Line)
Export
Commodity
Import
m/tons
%
Origin
Dest. Commodity
m/tons
%
Origin
Dest.
Coal
1078180
72.7
S. Africa
Maputo Scrap Metal
360
1.0
Maputo
S. Africa
Steel
3720
0.3
S. Africa
Maputo Bran
9900
28.5
Maputo
S. Africa
Citrus
84218
5.7
S. Africa
Maputo Bentonite
11280
32.5
Maputo
S. Africa
Gypsum
3400
0.2
S. Africa
Maputo Wheat
4200
12.1
Maputo
S. Africa
Containers
5208
0.4
S. Africa
Maputo Steel
160
0.5
Maputo
S. Africa
47386
3.2
S. Africa
Maputo Containers
3528
10.2
Maputo
S. Africa
104247
7.0
S. Africa
Maputo General
5318
15.3
Maputo
S. Africa
6720
0.5
S. Africa
Maputo
16600
1.1
S. Africa
Maputo
126042
8.5
S. Africa
Maputo
7050
0.5
S. Africa
Maputo
34746
100.0
Maize
Cement
Gas
Molasses
Sugar
General
Total
1482771 100.0
Total
Source: CFM 2000
The major commodity in 2000 was coal transported from South Africa to Maputo with more
than 71 percent of the total volume. The imbalance between east-west and west-east volumes is
striking: 97.7 percent of the volume goes from South Africa to Maputo and only 2.3 percent
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from Maputo to South Africa. The amount of coal to be exported through the Port of Maputo is
like to increase substantially if the railway operations would work with higher capacity and
more efficiently. Many South African industrial producers like Xstrata/Lydenburg and Lion are
using road transport on the corridor as railway transport is too unreliable and lacks capacity.
Xstrata/Lydenburg, in the first semester of 2004 transporting 64,166 tons by road along the
Maputo Corridor, already went into negotiations with Spoornet for rail shipments starting in
2005.
The Goba Line is mainly used to export sugar from Swaziland through the Port of Maputo
counting for 98 percent of all cargo transport. The huge imbalance between east-west volumes
(98.7 percent) and west-east volumes (2.3 percent) makes transport costs high.
Table 34
International Traffic Maputo-Swaziland 2000 (Goba Line)
Export
Import
Commodity
m/tons
Sugar
256116
99.3 Swaziland
General
918
0.4 Swaziland
Maputo Containers
Citrus
374
0.1 Swaziland
Maputo General
Containers
231
0.1 Swaziland
Maputo
Gas
200
0.1 Swaziland
Maputo
Total
%
Origin
257839 100.0
Dest. Commodity
Maputo Cement
Total
m/tons
%
Origin
Dest.
3432
99.3
Maputo Swaziland
18
0.5
Maputo Swaziland
6
0.2
Maputo Swaziland
3456
100.0
Source: CFM 2000
The Limpopo Line has recently also been given into concession to international consortium and
will boost transport to and from Zimbabwe. The capacity of the line has been hardly used.
Table 35
International Traffic Maputo-Zimbabwe 2000 (Limpopo Line)
Export
Commodity
Import
m/tons
%
Origin
5624
14.7
Maputo
18240
47.6
Steel
2880
Sugar
Coal
Ferro Chrome
Livestock
68
Dest. Commodity
m/tons
%
Origin
Dest.
Zimbabwe Wheat
11000
55.6
Zimbabwe
Maputo
Maputo
Zimbabwe Maize
7942
40.1
Zimbabwe
Maputo
7.5
Maputo
Zimbabwe Containers
444
2.2
Zimbabwe
Maputo
10920
28.5
Maputo
Zimbabwe General
277
1.4
Zimbabwe
Maputo
550
1.4
Maputo
Zimbabwe Bentonite
120
0.6
Zimbabwe
Maputo
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Export
Import
Containers
21
0.1
Maputo
Zimbabwe
General
54
0.1
Maputo
Zimbabwe
38289
100.0
Total
Total
19783
100.0
Source: CFM 2000
Attract major industries and establish Free Industrial/Trade Zones
Mozambique has set a major socio-economic move in the second half of the nineties by
attracting a aluminum plant to establish in Mozambique. In May 1998 MOZAL – an
international consortium consisting of BHP Biliton (47% of the shares), Mitsubishi Corporation
Japan (25% of the shares), the South African Industrial Development Corporation (24% of the
shares) and the Government of Mozambique (4% of the shares) – started its construction works
20 kilometers west of Maputo to establish a major aluminum plant with a capacity of 253,000
tons of aluminum per year. The investment was 1.34 billion US dollars. In December 2000 the
production could start. In June 2001 an expansion was approved and project MOZAL 2 could
be implemented to double its output capacity to 506,000 tons aluminum per year. MOZAL 2
was finalized in August 2003, seven months ahead of schedule.
MOZAL Logistics
MOZAL has a dedicated terminal in Matola for importing raw materials – 600,000 tons of
alumina coming from Western Australia for the production of 250,000 tons of aluminum – and
exporting aluminum. This terminal is managed by SRMC Strang Rennies Moçambique
Consortium Ltd.
MOZAL Terminal in Matola, July 2004
The terminal has two silos with a capacity of 45,000 tons of alumina each. Every month two
shipments of 40,000 tons of alumina are delivering the raw materials for the plant. Transport to
the plant takes place in dedicated 30 ton tanker trucks designed and built in Australia.
MOZAL uses two grades of coke for the production of anodes. The coke is stored in two 11,000
tons silos. The coke comes from two different sources in the US About 1 11,000 tons shipment
is required every three weeks. A new ship unloader is installed with a capacity to transfer 300
tons of coke per hour onto the conveyor belt system. The same ship unloader is also designed to
unload alumina at the nominal rate of 500 tons per hour.
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The first shipment of liquid pitch was delivered onto the 12,000 tons storage facility in April
2003. BHP Biliton has chartered a ship to bring 6,000 ton parcel loads from Chiba, Japan,
which calls in at Maputo every two months. A dedicated tanker trailer with a capacity of 30 tons
has to transport pitch five times per day to the plant to feed the production of aluminum.
MOZAL Terminal in Matola, July 2004
Aluminum ingots are stacked into one-ton bundles at the Casthouse before they are loaded and
transported to the Matola export yard. Each 24-ton load received at the harbor facility is
strapped and stored in secure super packs ready for loading. Most of the metal is exported on
specially designed ships fitted with overhead gantry cranes to minimize loading times. Two
22,000 ton shipments will be required every month to manage the smelter output once the plant
is in full operation.
The establishment of MOZAL resulted in the coming of different suppliers in the nearby
Beluluane Industrial Park contributing to the creation of an export-led industrial base in
Maputo. One of these Mozambique-owned suppliers has developed to the point where it has
become an exporter to MOZAL’s sister company in South Africa. It has secured a contract of 2
million US dollars to supply engineered assemblies for the expansion of the Hillside aluminum
smelter in Richards Bay. The Beluluane Industrial Park, known as Beluzone, is a 660 ha park in
which 80 percent of the land is designated as a free trade zone. The area is being developed by
the Mozambique Investment Promotion Centre and Chiefton, an Australian facilities
management company.
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Improvement business climate
To facilitate trade and transport it is not sufficient to improve infrastructure. It is also necessary
to reduce red tape, bureaucracy and corruption. The many interventions that are taking place
simultaneously in the Maputo Development Corridor definitely have a positive impact on trade
and transport facilitation in this specific geographical region. The situation is gradually
changing to the better, but it is important to disseminate the positive developments in order to
attract new investments, which will in turn put even more pressure to reduce still existing red
tape, bureaucracy and corruption further.
MCLI – Maputo Corridor Logistics Initiative
This was one of the reasons why MCLI – Maputo Corridor Logistics Initiative - was founded in
March 2004. MCLI is a group of infrastructure investors, service providers and users, focused
on the promotion and further development of the Maputo Corridor. It is incorporated in South
Africa as a membership. Members are drawn from South Africa and Mozambique and cooperate closely with organized business, engage with relevant authorities, and represent the
combined views of all users of the Corridor and all parties involved in the provision of services
in the Corridor.
The following have been identified as areas where much work is still needed:
•
Continuous improvement of border procedures and operational hours.
•
Scope and competitiveness of transport services must be increased: additional capacity,
higher service levels and competitive rates for road, rail, port, terminals and shipping
lines.
•
Information services must be put in place and enhanced continually.
•
The promotion of investment zones must be coordinated and accelerated.
The initial strategic focus of MCLI is to engage both South African and Mozambican
Governments to reinforce the public-private partnerships in the area of logistics, to ensure that
the Maputo Corridor is the first choice for regional importers and exporters alike.
Although MCLI is an organization with very few permanent staff (3), its impact seems to be
enormous. In the short period of time it has achieved to present and provide a platform for
discussion among the main stakeholders of the Maputo Corridor. MCLI is considered a serious
partner by large South African exporters, South African authorities, Spoornet, port authorities,
Mozambican Government, Mozambican companies, etc and fulfills a bridge function between
various stakeholders in the logistic chain.
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Its activities merit support to increase its activities and develop two new areas:
•
Set-up and manage a system of real-time information services for trade, customs and
transport in the Maputo Corridor.
•
To monitor performance of trade, customs and transport and publicly disseminate
results.
Brenda Horné presenting MCLI in Maputo, July 2004
9.3
The Beira Corridor and the Sena Line
The Port of Beira is the natural freight port for Zimbabwe, but can also play an important socioeconomic role for Malawi, Zambia, Botswana and Congo. Nowadays the land connection with
Malawi exists only by road; the railway connection is waiting for rehabilitation. Since 1998 the
Port of Beira is managed by Cornelder Mozambique with 70 percent of the shares in the hands
of Cornelder Holding and 30 percent in the hands of Mozambique Railways. The Multi Purpose
Container Terminal has a capacity of 100,000 TEU per year, but used in 2001 only 30 percent
of its capacity. The terminal has a storage place of 200,000 m2 for 3,117 TEU’s and a bonded
transit warehouse of 8,400 m2. The General Cargo Terminal has a capacity of 2.3 million tons
with five covered warehouses of 15,000 m2 and 12,000 m2 of open space.
In 1995 the Beira Corridor still transported more than 1 million tons by rail between Beira and
Machipanda. In 2000 the total volume was reduced to 743,300 tons, but has recovered and will
reach in 2004 approximately 900,000 – 1,000,000 tons again .
Table 36
International Traffic Beira-Zimbabwe 2000
Import
Export
Commodity
m/tons
%
Origin
m/tons
%
Origin
Dest.
98900
18.3
Zimbabwe
Beira Rice
15100
7.4
Beira
Zimbabwe
145300
26.9
Zimbabwe
Beira Fertilizer
71300
35.1
Beira
Zimbabwe
Ferro Chrome
12000
2.2
Zimbabwe
Beira Maize
Beira
Zimbabwe
Steel
93700
17.3
Zimbabwe
Beira General
45300
22.3
Beira
Zimbabwe
2200
0.4
Zimbabwe
Beira Containers MT
32000
15.7
Beira
Zimbabwe
Coal
600
0.1
Zimbabwe
Beira Containers
25400
12.5
Beira
Zimbabwe
Wood
800
0.1
Zimbabwe
Beira Wheat
14100
6.9
Beira
Zimbabwe
187600
34.7
Zimbabwe
Beira
Granite
Containers
Copper
General
72
Dest. Commodity
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Total
541100
100.0
Total
203200 100.0
Source: CFM 2000
The main cause was the instability of the Zimbabwean regime. The volume of road transport
using the Beira Corridor to Zimbabwe is estimated at 400,000 tons per year.
Beira is actually still waiting for a mega project like MOZAL in Maputo for its spread effects
over other sectors of the economy. The proposed iron and steel plant in Beira is still in
discussion. In the meantime the hope is focused on the development of the agricultural zones of
Manica (6 million ha) and Sofala (3.5 million ha).
In 2004 the Government of Mozambique has selected RITES/IRCON as the preferred bidder for
the rehabilitation and operation of the Beira Railway System comprising the Sena and
Machipanda lines. The concession is for 25 years and the fees comprise: an entry fee of 2
million US dollars; an annual fixed fee of 1 million US dollars from year 11 to 25; and an
annual variable fee assessed as 3.0 percent of the company’s gross revenue for traffic up to 300
million net-tonkm and 5 percent between 300 million and 1 billion net tonkm and 7.5 percent
for traffic over 1 billion net tonkm.
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In 1981 the Sena Line recorded a volume of 1,893,000 tons:
Coal
Sugar
Limestone
Fertilizers
Malawi International Trade
Other
600,000 tons
120,000 tons
300,000 tons
75,000 tons
500,000 tons
298,000 tons
A study from Giersing Rose in December 2001 points out that the total volume of traffic which
could be contractually bound to a rehabilitated Sena Line could be of the order of 450,000 tons
per year without taking into account coal from Moatize and only 100,000 tons of limestone
from Muanza.
Plans are underway to concession the Moatize coalmines to the private sector, at which time the
traffic is expected to grow rapidly. Much interest has already been raised among the private
sector for this concession.
A full operation of the Beira Corridor may attract another 4-6 million tons of freight as the
forecast of Giersing Rose from 2003 shows.
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12k
m
Blantyre
Limbe
Potential Coal Exports from
Moatize : 3 to 6 mtpa
SENA RAILWAY - TRAFFIC ESTIMATES
Malawi Int traffic,
initially 150 000 tpa,
later 650 000 tpa,
mainly shifted from
SA route
Moatize
240km
Tete
223km
Zambezi River
Road
to
Road to Beira
Harare
8k
m
Sena
Existing road traffic between
Beira and Malawi : 150 000
to 200 000 tpa
Existing road traffic
between
Malawi
and Zim - South
Africa: + 1 mill tpa
Vila Nova
43k
Dona
m Ana
Agriculture: Cotton,
Rice, Coconut
Timber to Beira,
initially 50 000 tpa
N1
road
Imports / Exports
via
Zimbabwe,
Approx 2 mill tpa,
Incl POL (pipeline)
N-S
Muanza
Beira
Railway
90k
Machipanda m
Road
Maputo
76
TOTAL ADDITIONAL GROWTH 4 to 6 mill tpa
65km
Caia
47k
m
Inhamitanga
to Harare
Possible Contractually Based, Phase 1 : (existing)
Sena Sugar exports 130 000 tpa
Sene Sugar Imports
20 000 tpa
Malawi International traffic
150 000 tpa
Timber
50 000 tpa
Limestone to Dondo Cement
100 000 tpa
TOTAL CONTRACT BASED - min 450 000 tpa - PHASE
Possible Additional Growth Based, Phase 2 :
Coal from Moatize
3 -6 million tpa
Malawi Int Traffic - gen cargo/ cont 500 000 tpa
Limestone
200 000 tpa
Timber
40 000 tpa
Agriculture products, Fertilizers
150 000 tpa
Zambezi Valley, Tete Gen Cargo 100 000 tpa
to
Marromeu
Luabo
88k
m
Existing
Sugar
Exports 130 000 tpa,
20 000 tpa imports
88k
m
Limestone to Dondo
initially 100 000 tpa,
later 300 000 tpa
Dondo
28k
m
Beira
Sena Sugar Estates
Chinde
Alternative
River/Sea
route
Beira Marroneu
Giersing Rose April. 2003
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9.4
The Nacala Corridor
The Nacala Corridor is not operating yet due to internal problems within the concession holder
Corridor for the Development of the North (CDN). CDN consists of the Railroad Development
Corporation from the US, Edlow resources (a Bermuda-based investment fund), a Malawian
partner through CEAR - concession holder of Malawian Railways - , Manica Freight Services
Mozambique, a number of smaller local investors in Mozambique and CFM. The Malawian
part, however, wanted to increase its share after the completion of the concession agreement
among the main partners causing delays in the ratification of the concession agreement. It is
unlikely that this consortium will start its operation and the launching of a new tender seems to
be inevitable.
The Port of Nacala is considered to be one the best deep sea ports on the Indian Ocean not
requiring any dredging activities. Its hinterland, Malawi in particular, would benefit by a well
functioning rail connection between Nacala and Malawi. Traffic volumes are very low as Table
37 shows.
Table 37
International Traffic Nacala-Malawi 2000
Export
Commodity
Import
m/tons
%
Origin
200
0.4
Malawi Nacala General Cargo
1500
2.7
Malawi Nacala Containers
Tobacco
21200
38.0
Sugar
10800
19.4
Tea
1700
3.0
Peas
6000
10.8
Potatoes
1300
2.3
13100
23.5
Empty Containers
Containers
General cargo
Total
55800
100.0
Dest. Commodity
m/tons
%
Origin
Dest.
7000
6.1
Nacala
Malawi
43600
37.8
Nacala
Malawi
Malawi Nacala Palm Oil
8400
7.3
Nacala
Malawi
Malawi Nacala Maize
6900
6.0
Nacala
Malawi
Malawi Nacala Soya Oil
2700
2.3
Nacala
Malawi
27000
23.4
Nacala
Malawi
Malawi Nacala Tobacco
1500
1.3
Nacala
Malawi
Malawi Nacala Fertilizer
7600
6.6
Nacala
Malawi
Wheat
7400
6.4
Nacala
Malawi
Salt
3100
2.7
Nacala
Malawi
Malawi Nacala Petrol
Total
115200 100.0
Source : CFM 2000
Domestic traffic through the Port of Nacala in 2000-2001 was 204,900 tons and 158,800 tons
per year, respectively according to statistics of CFM-North.
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SATCC is more optimistic concerning the port statistics for Nacala and mention a total of
746,000 tons in 2001.
Operations on the this railway line are very limited due to the fact that the 77 km section from
Cuamba to entre Lagos is in poor condition. Shortage of locomotives and slack operating
procedures on Mozambican side and frequent washaways on lines in Malawi have affected
service delivery and created a negative customer perception of the route. Of CFM-North’s 14
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mainline diesel locomotives, only eight are operational and some not in a good condition. Of the
965 revenue-earning freight wagons, only 546 are serviceable, while at a minimum 80-85
percent should be operational.
Nacala should improve its port facilities, cargo-handling equipment and management to an
international standard. Together with an efficiently operating rail connection with Malawi,
Malawi, Zambia and Congo would definitely make more intensive use of the Nacala Corridor.
Nacala has even the potential to develop into a mini-hub port for the Comores Islands (Mayotte,
Moroni) and the northern ports of Madagascar, which trades are currently being handled by
various feeder services from Durban, Dar es Salaam and Mombasa.
Discussions are underway with the Ministry of Defense for full commercial exploitation of the
airport of Nacala.
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10
10.1
CONCLUSIONS AND ACTION PLAN
Main findings and identified problems
The main findings and identified problems in the field of trade and transport are:
High costs for trade and transport
The overall costs for trade and transport are excessively high. The road tariffs average 0.08 US
dollars per tonkm; the railway tariffs 0.05 US dollars, which twice as high as the rate prevailing
in efficiently-run railways. This is mainly due to widely unbalanced trade flows, inefficient
operation of the service providers and still existing red tape and administrative bureaucracy.
Inadequate customs facilities, lack of harmonization of customs procedures with neighboring
countries and lack of coordination among inspections at border crossings
The main cause of the delays at border crossings is the lack of border facilities, modern
information and communication technology and banking facilities. The restricted opening hours
of the borders do not permit and efficient flow of commodities and passengers. The Transport
Information Management System is not in all offices installed and operational. Electronic
payment at borders is still not possible. Customs lack modern premises and adequate equipment
to facilitate controlling and clearance procedures. The lack of clearance facilities is causing
unnecessary delays.
Customs procedures are often changing. Besides, customs rules are being interpreted in many
different ways and there is evidence that the procedures themselves are not full comprehended
by those who have to administer it.
Application of modern transit procedures are largely absent including application of the transit
guarantee system.
There is lack of cooperation between Customs, other border agencies, transport authorities and
law enforcement authorities still causing long waiting times at the borders causing extra costs
for the transport companies and the shippers. The situation, however, at border with South
Africa is improving.
Transparency of costs, timing and access to information
There is lack of transparency of costs and procedures related with transport and trade. These
procedures are often changing in time as well without adequately informing the respective
stakeholders.
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Poor transport infrastructure and transport performance
The conditions of the rail network in Mozambique need improvement. There is a shortage in
handling and storage facilities in ports. International shippers are also in need of high standard
terminals and bonded warehousing facilities. Absence is Mozambique of these facilities leads to
delays.
The Mozambican transport and forwarding sector services are often below standard, which
makes it difficult for them to compete with foreign companies. Smaller forwarders often lack
international experience and the sector has not yet grown mature. This leads to forwarding
companies that do not take their responsibility and step out as soon as cargoes are lost or
damaged. This is also possible due to a poor legal framework for forwarding. International
standards are not yet incorporated and the sector is hardly organized.
Import duties on tires and spare parts for trucks and buses are too high.
Clearing agents need to enhance their level of professionalism.
Lack of adequate transport legislation
Transport legislation does not reflect the new socio-economic reality in Mozambique and is
largely still based on old values causing problems in control and enforcement.
Excessive administrative business regulations
Mozambique applies excessive administrative regulations for establishing and operating a
company: company registration is time-consuming and costly; administrative procedures are
costly; application of the rules of origin is not always clear; import exemption authorization is
too time-consuming; reimbursement of VAT takes too long; labor legislation is too rigid.
Lack of adoption, implementation and enforcement of international agreements
Several international agreements have been developed to facilitate transport and trade and to
promote seamless transit traffic: regional cooperation agreements, multilateral conventions and
bilateral arrangements. However, implementation and proper enforcement are often lacking.
10.2
Implementation strategy
Modal Integration
Modal integration is a prerequisite for an efficient and effective logistic chain reducing time and
costs of transport and facilitating trade and transport.
Free market access and liberalization of transport and terminal operators are important
conditions for efficient transport and terminal operations. This process is well underway in
Mozambique with the concessioning of ports, railways and terminals. Investments in dry ports,
terminals and basic transport infrastructure are needed to increase its quality and removing the
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present constraints. Private capital should be attracted to participate in these required
investments.
There is a growing market for providers of integrated logistic services (transport, warehousing,
document processing, payment administration, packaging, assembling, order management, etc.).
The transit traffic could be stimulated by value-added service providers. It is necessary to
introduce a liberalization policy for Multimodal Transport Operators, which also should obtain a
legal status.
Trade, transport and transit charges and tariffs must be optimized and should be based on actual
costs and no surcharge should be allowed. Administration should be done in an efficient and
effective way. Charges and tariffs should be made transparent and public.
Information Flow Integration
Integration of the information flows accompanying flows of transport and trade may contribute
to increasing the efficiency of movements of goods, services and persons. As such it constitutes
an important component of a trade and transport facilitation strategy.
The information flow integration strategy consists of the following elements:
a)
b)
c)
d)
e)
f)
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Simplifying and standardizing border-related documentation requirements with
neighboring countries (no duplication of international/national documentation) for all
controlling government entities.
Documentation must be unified maximally.
Mutual recognition of neighboring countries documents.
On the basis of bilateral or multilateral agreements governmental bodies of the
countries have to recognize the documents, issued by a second country. As an example
can be considered the recognizing of the phyto-sanitary and veterinarian certificates
when the goods supplied by the certificates issued in neighbor country don’t undertake
additional phyto and veterinarian inspecting on the border.
Acceptance of pre-arrival declaration/data for processing purposes.
A system of the pre-arrival declaration should be introduced, which allows to organize
and systemize the process in the better way by electronically connecting customs with
trades and transport operators. In this case attention will be given to the introduction of
risk management and selectivity methods for the controlling by the customs.
Data exchange among customs and other government agencies.
Data exchange between customs and other governmental bodies must be organized in
such a way, that the exchanged information is sufficient to comply with the legal and
regulatory.
Advance data exchange between controlling government entities and transport
operators.
There is also need for advance data exchange between controlling government entities
and transport operators (web sites, border crossing manuals, shields on the check
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g)
h)
points) with full information on tariffs, procedures and necessary documents for border
crossing.
Timely and transparent publication of controlling agency requirements.
Selected information sharing with neighboring countries.
All necessary information and demands of the controlling entities must be attainable,
and when it is based on IT technologies, it will be attainable also for neighbor countries.
Besides on the basis of bilateral agreements between the customs of countries volumes
and form of the data exchange, also updating of such data must be regulated.
Integrated Border Management and Corridor Management
The process of modernization, simplification, further promotion of international harmonization
of border crossing procedures and increasing transparency of rules and regulations is an
important component of a strategy, which focuses on trade and transport facilitation.
The simplification of border crossings implies both a revision of the individual legal and
administrative requirements for traded commodities and transported goods, services and persons
from the perspective of increasing effectivity and efficiency as well as a more intense
cooperation among customs and other government agencies interacting with trade and transport.
The simplification of border crossings may lead in last instance to one-stop processing at
borders and clearance through delegation of responsibilities among border agencies.
Investments will be needed to upgrade the infrastructure at the border crossings.
Other measures as pre-arrival processing and advance clearance; controls on the basis of risk
management and selectivity, balancing security and facilitation requirements, at border and in
transit; removal of internal checkpoints; and promotion of inland clearance facilities also lead to
more effective and efficient management of border crossings.
Also the international harmonization of border crossing procedures with neighboring countries,
which implies structural cooperation with border agencies of neighboring countries, such as the
initiatives put forward by SADC constitutes an important element in the strategy. Results of this
harmonization process may be officialized in bilateral or multilateral trade and transport
agreements between countries. The final result could be the establishment of joint border
facilities for which already plans exist for the border with South Africa at RessanoGarcia/Nkomatipoort. Mozambique is no longer member of COMESA, just like South Africa,
but all its other neighboring countries are. COMESA is striving for further harmonization of
border crossing and customs procedures and Mozambique is considering to become member of
COMESA again.
Increasing transparency of border crossing procedures and fast and efficient dissemination of
changes in these procedures are necessary for the operation of an efficient border management
system. Monitoring through measuring of performance (cost, time, reliability, security,
flexibility) is an important tool to achieve this objective. Therefore, it is important to involve the
shippers, forwarders and transport operators in this monitoring process. For the Maputo
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Corridor, MCLI - the Maputo Development Logistics Initiative- could play an important role in
this respect.
10.3
Action Plan
Legal framework
•
International agreements like the SADC Protocol on Transport, Communications and
Meteorology and the SADC Trade Protocol should be transposed into national
legislation to obtain legal enforcement authority.
•
New transport legislation should be developed. New road transport legislation should
regulate road freight transport and road passenger transport in different acts.
Quantitative restrictions to the access to market for road transport operators should be
eliminated. New qualitative criteria for road transport operators as financial standing
and professional competence should be introduced. Transport tariffs and prices should
be liberalized. A new Railway Code should be elaborated as well as new legislation on
maritime transport and coastal shipping and aviation.
•
A legal base for co-ordination and streamlining of border regulations should be created
and the mandates of the different border agencies and controlling authorities should be
clearly defined and implemented.
•
A legal base for combating corruption should be created bypassing the necessity to
apply criminal law.
•
Labor legislation should be made more flexible and business-friendly by facilitating the
hiring of foreign managers; allowing to work overtime and in shifts; and making
retrenchment of labor less costly.
Institutional/administrative capacity
•
Clearly define the regulatory role and function of governmental transport institutions
and increase the capacity of its staff.
•
Coordinate and streamline the application of all border regulations among controlling
agencies to minimize negative impacts on traders and transporters, while implementing
their responsibilities and duties; and monitor actual border and clearance performance
on a regular basis.
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•
Create capacity for electronic data exchange of customs and other border agencies and
implement the Trade Information Management System properly.
•
Agencies involved in border crossings should co-ordinate among themselves and with
the respective authorities of the neighboring countries aiming at facilitating border
clearance procedures.The format of trade and transport documents should be further
harmonized with international standards (UN, SADC, COMESA).
•
Promote the dialogue between the private sector and the public sector on trade and
transport facilitation issues and establish a National Working Group on Trade
Facilitation with all important stakeholders involved.
•
Set-up and manage a system to monitor the performance of the trade and transport
corridors, with tracking and performance indicators involving all stakeholders in the
process, including the private sector.
•
The transit guarantee system should be made operational.
Procedures
86
•
Customs procedures should be modernized, simplified and harmonized with those from
other agencies in Mozambique and neighboring countries. The concepts of integrated
border management and one stop processing are aimed at.
•
Adapt opening hours at borders to customers needs and harmonize with neighboring
countries.
•
Facilitate Direct Trade Input and advance clearance.
•
Reduce import duties on tires and spare parts of commercial vehicles and buses.
•
Facilitate electronic payment of tariffs, taxes and duties.
•
All inspection procedures should be carried out more efficiently and be based on risk
assessment and selectivity.
•
Rules and regulations should be enforcement properly.
•
Changes in Customs rules and procedures (including valuation methods) should timely
be made transparent and public.
•
Availability of Customs staff to facilitate export inland clearance procedures should be
increased.
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•
Duty drawback schemes may be introduced to facilitate trade.
•
Organize (re)training of Customs officials on continuous basis.
•
Facilitate establishing and operating businesses by simplifying registration and other
administrative procedures; reducing inspections; making import exemption
authorization less time-consuming; shorten reimbursement period for VAT; etc.
Infrastructure
•
Banking and financing facilities at borders should be created to facilitate trade and
transport and shorten waiting times.
•
Facilitate investments in intermodal infrastructure and (bonded) warehouses.
•
Improved border facilities should be created to accommodate efficient trade and
transport of goods, passengers and services.
Industry competitiveness
•
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Training in transport and logistics management, financial management, marketing and
legislation and regulations should be organized for providers of logistics services, road
transport operators, forwarders and clearing agents.
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Project Proposals for Implementing the Trade and Transport Facilitation Strategy
Reference
Description activity
Implementing agency
Due date
1
Transport Reform Programme
Ministry of Communications
2005-2008
88
Objective and expected outcome
•
Elaborate new transport legislation:
road freight transport act; road
passenger transport act; Railway Code;
Act on Maritime and Coastal
Shipping; Aviation Act; etc.
•
Further develop regulatory framework
for transport conducive for the
development of trade.
•
Strengthen implementation and control
and information capacity of the
Ministry of Transport and
Communications.
•
Set-up transport information system to
monitor developments of the sector.
•
Further develop technical capacity of
staff of transport institutions.
Resources requires
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Reference
Description activity
Implementing agency
Due date
2
Border Agencies Reform Programme
Border agencies
2005-2008
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Objective and expected outcome
•
Simplify procedures for consolidated
shipment.
•
Further develop selective control rules
at all locations.
•
Establish bilateral and multilateral
committees to harmonize control
mechanisms with neighboring
countries.
•
Contribute to development of interborder agency co-operation.
•
Co-operate in developing single
processing and payment window for
all agencies.
•
Align border agency opening hours to
customer needs.
•
Improve human resources
management in border agencies.
•
Further develop performance
monitoring.
•
Strengthen transparency and
disseminate rules and regulations on a
permanent basis.
Resources requires
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Reference
Description activity
3
Strengthen the Public-Private Dialogue in Transport and
Trade Facilitation, Transit and Border Crossings
4
5
90
Upgrading of transport, intermodal and cross border
infrastructure
Training of transport operators, providers of logistics
services, forwarders and terminal operators
Implementing agency
Due date
2005-2008
2005-2008
2005-2006
Objective and expected outcome
•
Monitor performance transport, transit
and border crossings
•
Define an Ombudsman (appeal)
mechanism for complaints and
infringements of rules and regulations.
•
Conduct regular independent audits.
•
Define comprehensive transport
infrastructure needs assessment and
development strategy.
•
Further develop public-private
partnerships for financing
infrastructure investments.
•
Promote and facilitate the building
and operation of (dry) ports and
intermodal terminals.
•
Improve border crossing
infrastructure.
•
Training Certificate of Professional
Competence for Transport Operators.
•
Training of Logistic Managers in
Supply Chain Management.
•
Training FIATA of Freight
Forwarders.
•
Training of Terminal Operators.
Resources requires
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ANNEX 1 REFERENCES AND INFORMATION SOURCES
•
Assessment of Corruption and Red Tape as Barriers to Trade and Investment in
Mozambique; Booz, Allen, Hamilton for USAID; December 2002; 61p.
•
Bank of Mozambique; Annual Report 1992; 106 p.
•
Beira Railway Project; Project Appraisal Document; World Bank; July 2004; 70 p.
•
Cost of Factors in Mozambique; CPI; April 2004; 19p.
•
Country Commercial Guide 2003; US Department of Trade.
•
Final Report of the Survey on Customs Reform and Modernization in Mozambique;
Anthony Mwangi; March 23; 24p.
•
Mainstreaming Trade; A poverty reduction strategy for Mozambique; Nathan
Associates Inc.; October 2002; 139 p.
•
Malawi-Nacala Corridor Initiative: Main Report, Country and Project Files, Conference
Report; 2003.
•
Maputo Corridor Logistics Initiative; diverse materials 2004.
•
Mozambican Customs legislation 1998-2002.
•
Mozambique and ongoing international Trade Negotiations; Ministry of Industry and
Commerce; December 2002; 32 p.
•
Republic of Mozambique Statistical Appendix; IMF; March 2004.
•
Review of the Economic and Social Plan for 2003; Republic of Mozambique; March
2004; 124 p.
•
SADC Regional Freight Transport Corridors; August 2001; 76 p.
•
SADC Mozambique Information; 24 p.
•
Second Roads and coastal Shipping Project; Implementation Completion Report; World
Bank; December 2003; 49p.
•
Sena Line Programme; Giersing Rose; 2001; 31 p.
•
Trade Policy Strategies for Mozambique; Frank Flatters; December 2002; 9p.
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