Mozambique's Council of Ministers has granted approval for an extensive expansion initiative at its largest port, involving Emirates-based DP World Ltd., South Africa-based Grindrod Ltd., as well as the country's state-owned operator Mozambique Ports and Railways (CFM).
The expansion plan, with a total value of $2 billion, includes a 25-year extension for the group's operation of the port in Maputo, the capital city, with the concession set to run until 2058.
The deal, as outlined in a statement by the Council of Ministers, paves the way for substantial investments, reaching nearly $1.1 billion by 2033, which was the original end date for the concession.
Under the extended concession agreement, the port's capacity is slated to increase to 54 million tons annually by 2058, compared to the current 37 million tons. This expansion encompasses the enhancement of the coal terminal in Matola alongside Maputo, raising its throughput to 18 million tons per year from the current 7.5 million tons.
Additionally, the annual shipping-container capacity is anticipated to nearly quadruple to a million units over the same period.