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DP World’s USD 2 bn (AED 7.4 bn) Mozambique port expansion received the greenlight from Mozambique’s cabinet, Bloomberg reports. The agreement involves a further USD 1.1 bn investment into the port until 2033, when the original concession was due to end, according to the outlet.
Background: DP World secured the concession for Maputo Port back in 2003, as part of a consortium with Mozambique’s national railway operator Mozambican Railway Company, Grindrod and local company Mozambique Gestores, according to the port’s website. The concession was extended for a period of 15 years in 2010, with an option of an additional ten years of operations after 2033..
The new agreement: The 25 year-extension extends the group’s concessions at Maputo until 2058.
The port’s capacity is expected to increase to 54 mn tons a year by 2058, up from 37 mn tons a year presently, according to the revised concession agreement. The Matola coal terminal near Maputo will be expanded, increasing its capacity to 18 mn tons per year from 7.5 mn tons. Annual shipping-container capacity is set to experience a nearly fourfold increase, reaching 1 mn units during the same period.
Maputo’s port has seen increased demand in recent years, driven by the country’s expanding economy and a surge in South African miners opting to export through the port, avoiding disruptions caused by issues with South Africa’s state-owned rail and ports operator Transnet. These disruptions have incurred significant financial losses, amounting to bns of USDs for exporters.
OTHER INVESTMENT NEWS-
Luxury real estate developer Omniyatplans to invest AED 10 bn by 2028 in theMarasi Bay Marina, which it acquired in September 2023, Albayan cites Omniyat CEO Mehdi Amjad as saying.The company plans on adding a fifth tower to its existing AED 8 bn investment in four towers and a hotel in the Marina.
The company is also looking to explore green bonds to fund its operations in the next two years, Amjad said.
