Preparatory work is underway to launch tenders for the project and will costs around USD270 million. The work includes reconstruction and expansion of the pier, acquisition of general cargo handling equipment, construction of the railway container terminal and improvement of access roads.
Back in May 2015, the Ambassador of Japan in Mozambique, Akira Mizutani, signed an agreement with the government of Mozambique to grant a loan of USD280 million to finance the second phase.
The first phase of the project was also funded by the Japanese government at a total cost of USD84 million. The work included repairing the north pier, paving the container terminal, installation of equipment to modernise fuel operations and construction of a new railway terminal which was awarded to the Japanese company Penta–Ocean Construction Co Ltd.
With the latest agreement the Japanese government is investing more than USD360 million in Nacala. In addition to serving Mozambican commercial operators and farmers, the port of Nacala is the gateway for goods entering and exiting neighbouring Malawi.