MSC launches dedicated shipping service for Mozambique LNG project as construction accelerates at Afungi

by Francis Mwangi
6 minutes read

Mediterranean Shipping Company has launched a dedicated logistics service linking Afungi with Mozambique’s ports of Nacala and Maputo, strengthening supply chains for the $20 billion Mozambique LNG project as construction resumes and Africa’s LNG ambitions gather pace.

Mediterranean Shipping Company (MSC) has launched a dedicated maritime logistics service to support the Mozambique LNG project, reinforcing supply chain capacity for one of Africa’s largest energy investments as construction activity accelerates following a five-year suspension. The new service, known as the Afungi Shuttle, will provide scheduled shipping connections between the project site in northern Mozambique and the ports of Nacala and Maputo, creating a specialised logistics corridor designed to streamline the movement of equipment, construction materials and industrial cargo required for the development of the liquefied natural gas (LNG) project.

According to information published by Club of Mozambique, the new shipping service was announced on July 28 and represents one of the clearest indicators yet that procurement and construction activities are intensifying at the Afungi Peninsula. The dedicated service comes after TotalEnergies resumed work on the Mozambique LNG project in January 2026, following the lifting of force majeure that had remained in place since the insurgent attack on Palma in March 2021.

The launch of the Afungi Shuttle reflects the growing importance of logistics infrastructure in supporting Africa’s expanding energy sector. Large-scale LNG developments require continuous movement of oversized industrial equipment, modular processing units, steel structures, specialised machinery and operational supplies from manufacturing centres across Europe, Asia and the Middle East. By offering a single logistics provider and unified booking system for the entire transport chain, MSC aims to simplify cargo handling while reducing transit complexity for contractors operating on one of the continent’s most significant energy projects.

The service will operate regular sailings between Afungi and the ports of Nacala and Maputo, each serving distinct strategic functions within Mozambique’s transport network. Nacala, located approximately 450 kilometres south of Afungi, is one of Southern Africa’s deepest natural ports and serves as a critical gateway linking Mozambique to Malawi and Zambia through the Nacala Development Corridor. The port has increasingly become an important logistics hub for regional trade, supporting imports and exports for several landlocked countries in Southern Africa.

Maputo, Mozambique’s principal commercial port, complements the northern route by providing efficient access to South Africa, the region’s largest industrial economy. Together, the two ports create a dual logistics network capable of handling diverse cargo flows supporting the LNG development while strengthening Mozambique’s wider transport infrastructure.

According to industry analysts, efficient logistics remain one of the defining factors determining the successful delivery of mega energy projects. LNG developments typically involve thousands of international suppliers operating across multiple jurisdictions, making integrated transport systems essential for maintaining construction schedules and controlling costs. Dedicated shipping services also reduce congestion, improve cargo visibility and minimise delays associated with fragmented supply chains.

The announcement coincides with renewed momentum at the Mozambique LNG project, which remains one of the largest private investments ever undertaken in Africa. Operated by TotalEnergies, the development is centred on the Golfinho and Atum natural gas fields within Offshore Area 1 of the Rovuma Basin, an area estimated to contain some of the world’s largest undeveloped natural gas reserves.

According to TotalEnergies, construction of the project is currently approximately 42% complete, with more than 6,000 workers already deployed on site. The company expects first liquefied natural gas production in 2029, subject to the continued progress of engineering, procurement and construction activities.

The restart of construction follows significant improvements in security conditions around Cabo Delgado Province after coordinated interventions by Mozambican security forces, regional troops deployed under the Southern African Development Community (SADC) Mission, and Rwandan security forces. While security challenges have not disappeared entirely, improved stability has enabled contractors to gradually return to the project site after several years of suspension.

The economic implications of the project extend well beyond Mozambique’s gas sector.

President Daniel Chapo has estimated that the Mozambique LNG project could generate approximately US$35 billion in government revenue over its operational lifetime through taxes, royalties and other fiscal contributions. Such revenues have the potential to significantly strengthen Mozambique’s public finances, expand fiscal space for infrastructure investment and support long-term economic development if managed transparently and effectively.

According to the International Monetary Fund (IMF) and the World Bank, Mozambique’s natural gas reserves could transform the country’s macroeconomic outlook over the coming decades. However, both institutions have consistently emphasised that translating resource wealth into broad-based development will depend on sound governance, prudent fiscal management and continued investment in human capital and economic diversification.

Beyond government revenues, the project is expected to create substantial employment opportunities. TotalEnergies estimates that construction and associated activities will generate up to 7,000 direct jobs for Mozambicans, alongside additional indirect employment through local suppliers, transport providers, engineering firms and service industries. Local content programmes are also expected to expand participation by Mozambican businesses within the project’s procurement chain.

The dedicated shipping service introduced by MSC may also deliver broader benefits for Mozambique’s maritime sector. Increased cargo throughput at Nacala and Maputo could stimulate additional investment in port infrastructure, warehousing, customs modernisation and multimodal transport systems. Improved logistics capacity developed for the LNG sector may subsequently support agricultural exports, mining operations and regional trade long after construction is completed.

According to the African Development Bank (AfDB), logistics costs remain among the highest barriers to competitiveness across Africa, with transport inefficiencies significantly increasing the cost of industrial production and cross-border trade. Investments that strengthen maritime connectivity therefore have implications extending beyond individual projects by improving regional supply chains and supporting implementation of the African Continental Free Trade Area (AfCFTA).

The Mozambique LNG project also forms part of Africa’s expanding role in global natural gas markets. As European and Asian economies seek to diversify energy supplies while supporting lower-carbon transitions, African LNG producers including Mozambique, Senegal, Mauritania, Nigeria and Tanzania are attracting increasing investor interest. Natural gas is expected to remain an important transition fuel for many developing economies, particularly where it supports industrialisation, electricity generation and reduced dependence on more carbon-intensive fuels.

Nevertheless, the project continues to attract scrutiny from environmental organisations and financial institutions concerned about climate impacts, biodiversity protection and community livelihoods. Several international lenders previously reassessed their exposure following the security crisis in Cabo Delgado, while civil society groups continue to call for stronger safeguards to ensure local communities benefit from the project’s economic gains.

For Africa, the launch of MSC’s Afungi Shuttle represents more than a logistics announcement. It illustrates how large-scale infrastructure investments increasingly depend on integrated transport networks capable of supporting complex industrial supply chains across multiple continents. As Mozambique advances towards becoming one of Africa’s major LNG exporters, the efficiency of its logistics ecosystem will be as important as the gas reserves themselves in determining whether the country can translate resource development into sustainable economic growth, stronger regional trade and long-term industrial competitiveness.

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