Chongoene Development Corridor

Market Study- Inception Presentation

03 September 2013
 Project Overview
The Mozambique Government wishes to create a new freight and economic development corridor in the Gaza province from
Chongoene on the coast up to the Zimbabwe border near Mapai. An SPV company, STT, has signed an MOU with the government
to develop and promote the implementation of this proposed corridor. Terms of reference for the preparation of an outline
business case have been prepared by Keben and Associates on behalf of STT, and this proposal is based on the requirements of that
TOR.
Mot MacDonald (MMP) has acquired 15% of the total funds from the Department of Trade and Industry South Africa (DTI). The
fees have been proportioned between Arup and MMP as per the Fee Proposal.
•The long-term proposals for this program include the following elements that are included in this proposal:
• A new port at Chongoene
• Approximately 600km of rail line
• Approximately 600km of roads
• Power and Energy Options
• A dry port at Mapai
Our proposal contained in this document is for a study that will define the final scope of the project and will cover the concept and
pre-feasibility stages. Our study will check for fatal flaws, assess the possible market demand, prepare an overall concept for each of
the elements (including options and alternative scenarios), and assess the high-level costs and feasibility. Our final report will identify
the preferred option for each element and provide a road map and recommendations for the full feasibility study to follow.
 Mozambique Transport Corridor
Study

Project Overview

The Mozambique Government wishes to create a new freight and economic development corridor
in the Gaza province from Chongoene on the coast up to the Zimbabwe border near Mapai. An
SPV company, STT, has signed an MOU with the government to develop and promote the
implementation of this proposed corridor. Terms of reference for the preparation of an outline
business case have been prepared by Keben and Associates on behalf of STT, and this proposal is
based on the requirements of that TOR.
Mot MacDonald (MMP) has acquired 15% of the total funds from the Department of Trade and
Industry South Africa (DTI). The fees have been proportioned between Arup and MMP as per the
Fee Proposal.
The long-term proposals for this program include the following elements that are included in this
proposal:
• A new port at Chongoene
• Approximately 600km of rail line
• Approximately 600km of roads
• Power and Energy Options
• A dry port at Mapai
Our proposal contained in this document is for a study that will define the final scope of the
project and will cover the concept and pre-feasibility stages. Our study will check for fatal flaws,
assess the possible market demand, prepare an overall concept for each of the elements (including
options and alternative scenarios), and assess the high-level costs and feasibility. Our final report
will identify the preferred option for each element and provide a road map and recommendations
for the full feasibility study to follow.
3 P3 AFRICA
Study Context

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Project Lifecycle Process

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Project and Systems Lifecycle

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PHASE
Process Definition

Finalise
Concept Pre-feasibility Feasibility Execution
(Project
(FEL-1) (FEL-2) (FEL-3) (FEL-4)
Close-out)

• Identify • Identify and • Establish context • Start execution • Performance

business confirm ORS and ORS • Generate confirmation
needs and • Prioritise options • Plan project specifications • Archive
• Execute • Execute basic • Procurement documentation
Stage Gate Review

Stage Gate Review

Stage Gate Review

Stage Gate Review

ORS
ACTIVITY

Project Closed
preliminary engineering • Detailed design • Acceptance
• Generate design • Generate project \manufacturing • Commercial &
options • Evaluate costs cost estimate and and construction financial closure
• Execute and business business case • Test and • Post project
concept case • Produce commission review
designs • Generate pre- feasibility report • Close-out report
feasibility report
• Evaluate
costs and
business case
• Generate
concept report
Source: Transnet Project Lifecycle Process

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 Phase Classification

Classification Concept Pre-Feasibility Feasibility Execution

(FEL-1) (FEL-2) (FEL-3) (FEL-4)
Level of 1% to 5% 10% to 30% 40% to 70% 60% to 100%
Engineering
Definition
Level of 30% to 50% 20% to 30% 10% to 15% based Up to 10%
Contingency on Qualitative Risk based on
Analysis Quantitative Risk
Analysis

Indicative -50% to +50% -20% to +20% -10% to +15% -5% to +10%

Accuracy Range
Source: Transnet Project Lifecycle Process

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Strategic Approach

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Sustainable Economic Development

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Conceptual Development Framework

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Corridor Development Perspectives

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Domestic Viewpoint

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Domestic Hinterland

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Competitive vs. Complementary Ports

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Anchor Commodities

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Existing Major Road Infrastructure

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Existing Rail and Road Infrastructure

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Proposed Techobanine Railway

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Proposed Limpopo Corridor

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Chongoene Development Corridor

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 Domestic Corridor Development
Constraints
• Topography
• Rainfall
• Population Density
• National Parks and Game Reserves
• Environmentally Sensitive Areas
• Geology (still to be mapped)
• Hydrology (flood lines still to be mapped)

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Topography

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 Rainfall

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Population Density

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National Parks and Game Reserves

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Environmentally Sensitive Areas

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 Domestic Corridor Development
Opportunities
• Minerals
• Mining
• Agriculture
• Manufacturing/Agro-Processing
• Power
• ICT
• Oil and Gas (TBD)
• Tourism (TBD)

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 Minerals

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 Mining

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 Agriculture

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Manufacturing/Agro-Processing

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 Power

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 ICT

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Chongoene Port and Terminal Assessment

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 Rationale for Port of Chongoene (Part 1)

• Ports appraisal to establish role / functionality for a new port in

Mozambique: inter-regional specialisation
• Analyse intra-Mozambique ports strategy: ‘Southern Cluster’ with split
of functions as between Maputo and new port(s)
• Hinterland trades focus:
– Large volume bulks (Botswana / Zimbabwe / RSA) + Chibuto Heavy
Sands the joint ‘trigger’
– Review corridor servicing potential: Maputo corridor / Limpopo corridor
– Assess specific trades in context of inter-regional and intra-Mozambique
strategy
(Liquid bulks/LNG support/Agriculture/Container/Passengers/Ship Repair)

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 Rationale for Port of Chongoene (Part 2)

• Regional development catalyst focus:

– Port-related services and industries in Chongoene environment
– The viability of value chain development in Gaza Province:
• Minerals beneficiation (e.g. heavy metals processing)
• Logistics hub(s)
• Agricultural extension services

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Relevant Port Analysis

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