Mozambique: Chongoene port concession granted for 15 years

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Mozambique: Chongoene port concession granted for 15 years

3:50 CAT | 30 Aug 2024

FILE - For illustration purposes only. [File photo: TV Sucesso]

The Mozambican government has granted a 15-year concession, as a public-private partnership, for the construction, operation, maintenance and management of the Chongoene Port Terminal in Gaza province, to a company co-established by Chinese firm Desheng Port and state-owned Mozambican Ports and Railways (CFM).

“There is a need to establish the legal basis that allows the concession, under a public-private partnership regime, to a private operator, for the construction, operation, maintenance, management and return of the infrastructure of the Chongoene Port Terminal, in Gaza province, for commercial exploitation of the public port service,” reads the decree approved by the Council of Ministers, dated August 26, to which Lusa had access this Friday.

The concession is granted to Sociedade Terminal de Minérios de Chongoene SA, formed by the companies Desheng Port and Portos e Caminhos de Ferro de Moçambique (CFM), and “authorises” the concessionaire to “design, finance, build, own, operate, manage, rehabilitate, maintain, commercially exploit and return the port infrastructure of the Chongoene Port Terminal and all related and auxiliary infrastructures”.

“The operation, on an exclusive basis within the concession perimeter of the port infrastructure at the Mining Port Terminal, has as its main activity the storage and handling of national heavy sands in bulk,” the decree details.

The terminal “must have a minimum capacity of eight million metric tons per year, for the export of national heavy sands in bulk, which may increase depending on demand,” it adds.

READ: Mozambique: Government establishes Port Jurisdiction Area in Chongoene

According to previous official data, the first phase of investment in the construction of the Chongoene Port Terminal is budgeted at US$55 million (€49.6 million), with the promoters expecting to use it for the export of heavy sands from Chibuto, a project also led by Desheng, whose production is estimated at two million tons per year.

Source: Lusa