The second phase of the modernisation and expansion works of the port of Nacala in Mozambique may start this year.

Preparatory work is underway to launch tenders for the project, provincial governor of Nampula, Victor Borges says.

This work, costing $270 million, includes reconstruction and expansion of the pier, acquisition of general cargo handling equipment, construction of the railway container terminal and improvement of access roads.

In May 2015, the Ambassador of Japan in Mozambique, Akira Mizutani, signed an agreement with the government of Mozambique to grant a loan of $280 million to finance the second phase.

The first phase was also funded by the Japanese government, which contributed $84 million, bringing that country’s total investment to over $360 million.

Work on the first phase, which included repairs to the north pier, paving of the container terminal, installation of equipment to modernise fuel operations and construction of a new railway terminal, was awarded to Japanese company Penta Ocean Construction Co Ltd.

The port of Nacala, in addition to serving Mozambican commercial operators and farmers, is the gateway for goods entering and exiting neighbouring Malawi.