Maputo, Mozambique — 19 February 2013 – The Sena railway line, which transports coal mined in Mozambique’s Tete province to the port of Beira, has been at a standstill since last week as a result of extensive damage caused by flooding.
Macauhub News Agency quotes the Mozambican press as reporting that the situation is making officials at the subsidiaries of Brazilian mining giant Vale and Anglo-Australian group Rio Tinto “nervous.” And to add to the problem, there was a derailment last Tuesday.
Losses resulting from three derailments this year alone, added to natural disasters in the country, have already affected the companies’ commitments to their sales contracts, particularly to the Indian and Chinese markets.
Until December of last year the Brazilian mining company had transported over 2Mt of coal along the Sena railroad on 1,000 trains, whilst Rio Tinto transported 35,000t of coal.
According to the Mozambican press, officials from the Vale group are currently in Mozambique to assess the situation and the lack of infrastructure and inefficiency of the Sena line. The company plans to “deal with this at the highest level soon.”
In addition to the derailment, rains in Mozambique have led to huge losses on the line, and in some places the water has washed away the rails, sleepers and ballast, and even destroyed some small bridges.
The Sena railroad has been under repair since last May, which is expected to cost US$45 million.
Source: Macauhub News Agency. For more information, click here.