US$32 million boost for Maputo port

DP World has become a 48.5% shareholder in Portus Indico, the company that holds the concession to operate Maputo port until 2018.

"Together, we have created a partnership that will support the investment required to build the port of Maputo into a notable force in the logistics chain in southern Africa," said DP World Chief Executive Officer Mohammed Sharaf.

Sharaf expects the new partnership to make Maputo port the first choice for the region's importers and exporters.

DP World's other partners in Portus Indico are shipping and logistics group, Grindod International, who also hold 48.5% of the shares, while a Mozambican company, Mozambique Gestores SARL, holds 3%.

It is one of the largest marine terminal operators in the world and already holds the concession to operate the container terminal at Maputo port.

DP World holds 60% shares in container terminal company, Maputo International Port Services (MIPS), while the Mozambique Ports and Railways Company holds the remaining 40%.

It also has interests in countries such as India, China and the Middle East.

The Maputo Development Corridor

The port is part of the Maputo Development Corridor, which is the brainchild of former Mpumalanga Premier Mathews Phosa and has opened trade links from Gauteng, through Mpumalanga, to Mozambique's capital of Maputo.

The Maputo Development Corridor is part of Mpumalanga's "Big Five" flagship projects which will be prioritised this year to boost development and service delivery in the region.

Other projects are:

• providing clean water to all residents by 2010
  
• establishing a development corridor linking the impoverished Moloto region to Gauteng,
  
• boosting the capacity of government officials and
  
• promoting heritage, tourism and conservation.

Private and public sector partnerships were also necessary to leverage development and investment opportunities along the Maputo and Moloto corridors.

As part of the Maputo Development Corridor, industrial infrastructure projects would be implemented to create an environment for business operations along the corridor.

Such projects would include establishing freight logistics.

The corridor would also promote manufacturing among small, medium and large enterprises in the province.

This project would also encourage primary production of goods and services as part of rural development.

The Maputo Development Corridor, which links the province with Gauteng and the port of Maputo in Mozambique, is not an entirely new project.

It was conceptualised in 1994 when the new South African government entered into bilateral agreement with the Mozambican government.

It had since been described as true transportation, comprising road, rail, border posts, port and terminal facilities.

The corridor, which passes through vast industrial and primary production areas, was designed to upgrade South Africa's links to Maputo port, and to persuade more South African companies to import and export through Maputo.

Article published courtesy of BuaNews