NEW MAPUTO PORT DEAL TO BOOST SA EXPORTS

Business Day, 25 March 2003
By: Carli Lourens, Industrial Correspondent

In a move that could boost exports from SA, the Mozambican government yesterday finalised a concession agreement that would see a private sector consortium managing the country's Maputo port for the next 15 years.

The award of the concession, after a two-year delay, will come into effect on April 14.

Congestion at and distance to SA's main ports have led several SA companies, such as BMW, to consider using the Maputo facility. The proximity of an efficient port at Maputo to Mpumalanga and Limpopo could also render new export ventures from these regions viable.

However, SA companies would only give the option serious thought if efficiencies at the Mozambican operation were stepped up and if facilities and infrastructure in and around the port were improved.

Maputo Port Development Company (MPDC), which was awarded the concession, yesterday said it would commence with a $70m upgrade programme which was already guaranteed by the private sector investors immediately after the takeover next month.

MPDC head Alec Don believed throughput at the harbour could be raised to about 15-million tons from the current four-million tons over the next few years. He expected much of the boost in volumes to come from SA companies diverting exports to Maputo.

Improvements at the port over the next three years would include the introduction of new tugs, construction of a new port entrance linking to the N4 highway, the purchase of new material handling equipment, and the upgrade of roads, among other things.

The railway line between SA and Mozambique was also being upgraded to the tune of R200m after the Mozambican government awarded SA rail utility Spoornet a concession to operate the line earlier this year.

The granting of concessions for the port and railway line forms part of the institutional reform process underway in Mozambique.

Private sector companies are being invited to manage port and railway infrastructure as part of the strategy to reform the country.

Mozambique's transport and communication minister Tomaz Salomo yesterday said the completion of the port concession and the completion of the Ressano Garcia rail concession would create many new opportunities for further investment in the region.

MPDC is 51% owned by a consortium consisting of Mersey Docks and Harbour Company, Swedish company Skanska BOT and Portuguese company Liscont Operadores de Contentores. The balance is owned by the national Mozambican transport utility CFM.

MPDC is funded by its shareholders, and by banks in SA and Europe. The banking group is led by Standard Corporate and Merchant Bank of SA. Other lead lenders include the Development Bank of Southern Africa, and FMO of Holland.