A Chinese-led consortium has officially signed a 15-year concession for the construction, operation, maintenance, and management of the Chongoene Port Terminal on the southern coast of Mozambique.
The public-private partnership between Chinese firm Desheng Port, which holds an 80-percent stake, and Mozambican state-owned railway operator Caminhos de Ferro de Moçambique is now authorised to “design, finance, build, own, operate, manage, rehabilitate, maintain, commercially exploit and develop the port infrastructure” of both the port and “all related an auxiliary infrastructure.” Officials say the Chongoene Port Terminal will enable various development projects in the south of the country.
Chinese mining company Dingsheng Minerals has agreed to finance the project in order to export heavy sands – mineral-rich ore deposits used in a variety of paints, plastics and ceramics – from its site in Chibuto.
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The Mozambican government originally authorised construction of the port in April of last year, but it was only last Thursday that the public deed for the contract was signed by Mateus Magala, Mozambique’s transport and communications minister, and Qijia Xue, vice president of the joint venture Sociedade Terminal de Minérios de Chongoene SA.
In addition to construction of the port and an approximately 73-kilometre railway connecting Chibuto to Chokwe railway line, the concession includes maintenance of the road connecting Chibuto to Chongoene, a new 7-kilometre road linking the EN1 highway in Chongoene to the terminal, and supply of water and energy to the people around the facility, “among other initiatives for the development of local communities,” according to a statement from the Ministry of Transport and Communications.
While the first phase of investment in construction of the Chongoene Port Terminal is budgeted at US$55 million, total works are estimated at over US$300 million. Despite the high price tag, it is considered a more profitable – and flexible – means of transporting heavy sands for export. The Chibuto site, where Dingsheng has been mining since 2018, has an estimated annual production of two million tonnes.
