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Logistics giant Grindrod suspends Mozambique port activities after border closure

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Following a violent crackdown on post-election protesters, South Africa has temporarily closed the main border with its northeastern neighbour due to safety concerns, prompting logistics giant Grindrod to cease port and terminal operations in Mozambique, the company announced on Thursday.

As underfunded state-owned port and rail businesses struggle to offer appropriate services, the suspension will impact the movement of commodities and goods in an area already facing logistical difficulties.

As opposition supporters protest what they claim is a rigged election victory by Frelimo, the party that has controlled Mozambique since 1975, at least 18 people have been killed in the protests, according to human rights organisations.

Following reports of cars being set on fire on the Mozambican side, South Africa’s border authorities announced on Wednesday that it had closed the Lebombo border. Following the border closure and rail service suspension, Grindrod stated it has halted port and terminal operations in Maputo and Matola.

Along with DP World, the Mozambican Railway Corporation, and Gestores, a private Mozambican corporation, the company is a member of a consortium that was given a concession to run the Maputo port.

Due in part to higher coal and chrome export volumes that were diverted from South Africa, where state-owned Transnet is unable to offer sufficient rail and port capacity, Maputo port had record volume increases in 2023.

A record 31.2 million metric tonnes of cargo, primarily minerals including coal, copper, chrome, and ferrochrome, were handled by Maputo port in 2023, a 16% increase over the previous year.

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Nigeria signs deal for aircraft maintenance facility

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To build an aircraft maintenance, repair, and overhaul facility, the Nigerian government, acting through the Ministry of Aviation and Aerospace Development, has partnered with a private company in a public-private partnership.

Details of the agreement were given by a Ministry of Aviation representative, who spoke on condition of anonymity because they were not authorised to discuss the subject. The representative explained that the new facility would function as an Approved Maintenance Organisation under the Nigerian Civil Aviation Authority’s regulations.

The representative said, “AMO approved by the NCAA is meant to perform specific aircraft maintenance activities, which activities may include the inspection, overhaul, maintenance, repair, and/or alteration and release to service of aircraft or aeronautical products.”

Nigeria, which is the most populous country in Africa, is a major destination for more than 22 international airlines. Over 78 nations now have bilateral air services agreements with Nigeria.

According to the ministry source, this facility is the first of its kind in Nigeria and is intended to address the increasing maintenance requirements of domestic aircraft, which currently frequently necessitate costly and time-consuming journeys to foreign maintenance facilities.

The actual “date of commercial operations will be the date on which the NCAA grants the concessionaire approvals and licenses as required by the concessionaire in the agreement,” the ministry continued, adding that the exact start date for construction and ultimate operations is still unclear.

The source added that “all necessary activities are underway to make the contract effective.”

The official responded, “I don’t have those timelines,” when questioned about them. Before we discuss the actual building and management of the facilities, we are working quickly to complete a few tasks that will make the contract effective.

Festus Keyamo, the country’s minister of aviation and aerospace development, announced in August that he had finalised plans to start the bidding process for the construction of maintenance, repair, and overhaul facilities.

The minister stated that the action was a component of the government’s endeavour to improve the nation’s aviation infrastructure and lessen dependency on foreign MRO services. Due to the project’s high capital requirements, he also declared his intention to pursue a significant project using a Public-Private Partnership approach.

Nigeria’s economy and transportation sector both heavily rely on civil aviation. Nigeria boasts 23 operating domestic airlines, 20 airports, several regulated airstrips and heliports, 554 certified pilots, 913 qualified engineers, and 1700 cabin crew members.

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Angola LNG open to expansion as gas supplies ramp up

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As fresh gas supplies to the facility ramp up over the next 12 months, Angola Liquefied Natural Gas (ALNG) is looking at potential expansion options, including adding a small train of three million metric tonnes annually, industry executives told Reuters.

The plant will reach full capacity for the first time with the help of additional supplies anticipated from Chevron by year’s end and the New Gas Consortium by the end of 2025.

The second-largest crude producer in Africa intends to shift its focus more towards natural gas in order to meet the rising demand in important European and Asian markets.

The $12 billion Angola LNG plant was put into service more than ten years ago, but it has been operating below its nameplate capacity for years as gas output at the mature sources that supply it has declined.

According to government sources, the current supply averages roughly 700 million standard cubic feet per day (SCF), or 70% of operating capacity.

Azule CEO, Adriano Mongini, the New Gas Consortium, a gas project run by the Azule Energy alliance between BP and Eni, is anticipated to begin production at the end of next year, six months ahead of schedule.

He stated on the fringes of an African energy conference in Cape Town that the project’s extra supplies will enable ALNG to operate at full capacity, with more feedstock expected from Angola’s first gas-specific exploration well to be drilled early next year.

“Angola LNG is already thinking about this expansion, if it’s a mini train or one additional train, so there are many ways to do it,” Mongini told Reuters.

 

Angola LNG is intended for a single train carrying 5.2 million tonnes annually and has Chevron, TotalEnergies, and Sonangol as stakeholders.

Billy Lacobie, managing director of Chevron’s Southern African division, stated that the company backed initiatives to boost the home market and maximise LNG exports.

According to an ALNG spokesperson, by filling around 40% of the plant by the end of 2024, Chevron’s Sanha Lean Gas Connection will boost ALNG usage and provide gas for 15 years.

Angola has 38 trillion cubic feet (tcf) of known gas and another 56 tcf of prospective resources, according to the country’s newly published 25-year gas master plan, which also indicated intentions to develop more than 40 gas fields.

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