by Lloyd's List

19 August (Lloyd's List) - MOZAMBIQUE will lease a terminal at the port of Nacala to its neighbour Malawi in a bid to strengthen commercial ties between the two countries.

Mozambican President Filipe Nyusi said space has been made available at the port for landlocked Malwai to use for its trade, according to the Mozambique Information Agency (AIM), the country’s official media outlet.

An agreement was signed to with Malawian President Lazarus Chakwera in Maputo last week to confirm the deal.

The concession is part of a wider programme of co-operation between the neighbour states, which includes connecting the electrical supplies of the two countries with a view to sharing power in the future.

Nacala has played a key role in Mozambique’s growing presence in the dry bulk sector. A recent report by shipbrokers Braemar revealed 13m tonnes of coal (thermal and coking) were loaded at Nacala from the Moatize mine in eastern Mozambique, transported to the port by rail through Malawi.

Braemar predicts coal exports from Nacala to reach the maximum capacity of 18m tonnes soon, thanks to growing Indian demand and increased production capacity in Mozambique.