$80M GRINDROD INVESTMENT TO TRANSFORM MOZAMBIQUE’S MATOLA PORT INTO A REGIONAL LOGISTICS POWERHOUSE

This cross-border collaboration will enhance competitiveness, reduce emissions, and generate employment in key sectors.

Mozambique Railway Port of maputo Logistic system Cross-border collaboration Matola coal terminal Investment.
The New Grindrod Administrative Office in Matola port
The New Grindrod Administrative Office in Matola port


South African firm Grindrod is injecting $80 million into Mozambique’s Matola Coal Terminal to ramp up capacity and shift the region’s freight backbone from congested roads to revitalized railways.

Announced Friday at the inauguration of Grindrod’s newly built $5 million administrative complex in Matola Port, the investment will lift the terminal’s coal handling capacity by 50% from 8 to 12 million tonnes annually. However, beyond volume, the expansion represents a decisive shift toward more sustainable and cost-effective rail logistics across the Maputo Corridor.

“This integration will not only bring benefits at the technical and operational level, but it will also have positive economic, social, and environmental impacts, including the creation of more jobs along the Corridor,” declared Mozambican President Daniel Chapo, calling for urgent structural reforms in cargo transport. “Our objective is to continue investing in the railways, so that we have fewer trucks and more rail wagons transporting coal and magnetite.”

The expansion is part of a broader integration push involving Mozambican rail operator CFM, South Africa’s Transnet, and the Maputo Port. Authorities hope this cross-border collaboration will enhance competitiveness, reduce emissions, and generate employment in key sectors.

MPDC Executive Director Osorio Lucas emphasized that infrastructure alone is not enough. “Teamwork is indispensable. That is the only way to guarantee that the Port of Maputo and the logistical system that feeds it are competitive and useful for the region and the world,” he said. 

Grindrod’s administrative office, covering 2,000 square metres and employing over 90 staff, symbolizes the company’s long-term commitment. “This year we complete 115 years of history, a trajectory of resistance, innovation, and commitment,” said Executive Director Xolani Mbambo.

Over 800 direct jobs are expected during construction, with further gains as operations scale. For Mozambique, the coal terminal upgrade is more than an infrastructure project; it’s a turning point in its quest for regional trade leadership.

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