$250m to be invested in Maputo Port over next five years

The extension of the public private partnership concession to operate the port of Maputo has signalled the start of a new wave of investment that paves the way to volumes of up to a million TEUs a year and 16 million tons of breakbulk. That’s the confident prediction of Jorge Ferraz, chief executive officer of the port of Maputo. Over US$250-million is expected to be invested in the port over the next five years on extensions to the coal, vehicle and container terminals, as well as the dredging of the channel and harbour, which has already started. Under the masterplan for the port, nearly half of the proposed capital expenditure up to 2030 will be invested in upgrading existing quays and building three new 15-metredeep berths for the container and Maputo cargo terminals. The Portus Indico concession to operate the port as a public private partnership now runs to 2033, with an option to extend it. Shares in the Maputo Port Development Company (MPDC) are held by the government-owned Mozambique Ports and Railways (49%), and the remainder by the Portus Indico partnership. Shareholders in the partnership are DP World and Grindrod (48.5% each), and Mozambique Gestors SARL (the remaining 3%). “It is all positive, and it is exciting times for the port,” he told FTW in Maputo. Shipping lines have identified the opportunities, and more are now calling on the port – with additional services expected as volumes grow, he says. Ferraz – together with others involved in the management of the port – is quick to say that “we are not in competition with South African ports”. The region, he believes, needs more capacity if it is to grow economically. South African ports will not be able to meet the demand. “The time for Southern Africa is now,” he says. With container traffic alone growing by 20% to 25% a year, the region needs Maputo, which at present has under-utilised rail, road and port infrastructure. Dubai World and Grindrod, through their investment in the port, show that they share the optimism, he says. Container volumes are expected to reach 190 000 next year, with plans in place to accommodate up to a million a year in the future. Exports of coal, nickel and ferrous ores are expected to reach 40 million tons a year “within the next five to six years,” he says. An investment of R6-million in the coal terminal by Grindrod will see it able to handle 16 million tons a year, with further expansion planned to meet additional demand.