Mozambique: More income distributed to ports, railways

Login

Register

http://www.clubofmozambique.com/

Mozambique: More income distributed to ports, railways

10:11 CAT | 14 Jul 2023

File photo: Folha de Maputo

The Ports and Railways Company of Mozambique (CFM) will now receive more revenue from railway-port concession contracts to encourage investment in the sector, according to a government decree seen by Lusa on Thursday.

The measure, approved by a cabinet decree of 6 July, is justified by the “need to update the revenue sharing regime for fixed and variable fees” in the railway-port concession contracts, repealing the previous one from 2000.

Specifically, it involves the revenue resulting from the collection of the award fee and signature bonus, as well as fixed and variable fees, arising from the award of concession contracts for the design, construction, maintenance, management and operation of “existing and future” ports and railway systems.

In the case of railway concessions, CFM will keep 75% of these revenues (50% previously), with 15% going to the state and 10% to the sector’s regulatory bodies.

In port concessions, excluding the Port of Beira, CFM will keep 50% of these revenues, the state 25%, and the regulatory bodies another 25%, in this case, distributed equally between the Ferro-Port Institute of Mozambique, the Institute of Maritime Transport and the National Institute of the Sea.

In the case of the Port of Beira, the “total revenue from fixed and variable fees of this port concession” will be allocated to CFM “to safeguard the fulfilment, on behalf of the State, of the obligations of the granting authority” namely “those relating to the financing of dredging, operationalisation of navigation along the access channel, pilotage services, tugboats, aid to navigation and regular maintenance of the berth work of the quays”.

Source: Lusa