The Mozambican government will extend Cornelder Mozambique’s Port of Beira management concession for another ten years in the expectation that during this period the port’s cargo handling capacity will be modernised and expanded.
The decision was taken at the Council of Ministers’ seventh session in Maputo yesterday, with the cabinet approving a resolution calling on the concessionaire to invest in capacity at the container terminals and several other assets of the Sofala port.
Council of Ministers spokeswoman Ana Comoana explained that, as a result of the investments to be made by the concessionaire, the Port of Beira could look forward to increased cargo flow to and from hinterland countries and the emergence of new shipping lines.
The executive also expects the modernisation of the cargo terminal to usher in greater efficiency in the provision of services, as well as an increase in the port’s contribution to state revenue.
Ultimately, according to Comoana, the extension of the concession period and the investments foreseen will allow the Port of Beira to make the public investments in the area, such as the rehabilitation and expansion of National Highway Number 6 (EN6) and the Machipanda railway line restoration plan, feasible and profitable.
Both the highway and the railroad link the city of Beira to the border post of Machipanda, between Mozambique and Zimbabwe.
Responding to a question by Noticias, Deputy Minister of Culture and Tourism Comoana said that the terms and conditions of the extension of the concession and the volume of investments were still to be negotiated between the government and the concessionaire.
The current management concession contract was signed in 1998 and is valid for 25 years, ending in 2023. The government will be represented in the negotiations by the Minister for Industry and Commerce, Ragendra de Sousa.
The seventh session of the Council of Ministers also discussed President Nyusi’s visit to Switzerland, the decree on health and safety at work in the public administration, as well as disaster management between 22 February and March 3 and the closure of the Hulene waste dump in Maputo.
Reference Source: Notícias – Club of Mozambique