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Mozambique wants to attract capital for cabotage
5:33 CAT | 09 Mar 2016
ENH Logistics / Cabotage
The government of Mozambique is preparing the legal and regulatory framework to attract the private sector to invest in cabotage, said the Minister of Transport and Communications, Carlos Mesquita.
The minister noted some of the advantages of cabotage such as reduction of freight prices and consequent lower product prices at the destination, as well maintaining national cohesion, through the north-south connection, which is currently only provided by road .
Mesquita, cited by Mozambican daily newspaper Notícias, said that another of the advantages of cabotage was increased productivity, as producers will now have easier access to potential markets.
The minister, who was speaking at a business meeting between Mozambique and Canada, said that “if all goes well, by the end of March we will be able to present a document for assessment and approval to the Council of Ministers.”
Cabotage is shipping along the coast, specifically between ports in the same country.
Source: Macauhub
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Coastal transport could and should make a difference in Mozambique. However being competitive with road transport other variables have to be taken into account such as but not limited to stevedoring costs, truck turnaround time in ports, etc. Currently loading and unloading costs in Mozambican ports including all other ancillary costs and administrative hurdles when added to see freight costs (which are today rock bottom) make coastal transport an uneconomical alternative when compared to road transport.