The government of Mozambique has approved a deal for its largest port, including a US$2 billion expansion that will enable Maputo to draw cargo away from the troubled trade infrastructure of neighbouring South Africa, according to reports.
The deal grants the Maputo Port Development Company a 25-year extension to run the capital city port, ending in 2058. MPDC, a first-of-its-kind public private partnership in Africa, is split between state-owned rail and port company Caminhos de Ferro de Moçambique and Portus Indico, comprised of DP Limited, Grindrod and Mozambique Gestores.
Under the deal, investments of nearly US$1.1 billion will be made by 2033, the year the original concession was due to end.
[See more: The Mozambican government has announced a long-term investment in Beira Port]
The port of Maputo has grown rapidly in recent years, driven by Mozambique’s expanding economy and exports from neighbouring South Africa. MPDC announced earlier this month that a record-setting 31.2 million tons were handled by the port in 2023, up 16 percent over the previous year.
South Africa’s creaking trade infrastructure, and the issues it creates for exporters, is a factor behind Maputo’s growth. Coal, chrome and magnetite miners have been sending increased volumes to Maputo by truck, as breakdowns in South African logistics utility Transnet have cost them billions in lost revenue.
The new deal will increase Maputo’s capacity from 37 million tons per year to 54 million tons by 2058, and expand the coal terminal by 140 percent, from 7.5 million tons to 18 million tons a year. Annual shipping-container capacity will almost quadruple, hitting a million units over the same period.
