Maputo Port

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The government of Mozambique awarded to Maputo Port Development Company (MPDC) a 15 year concession to run the Maputo Port in March 2003. The contract was renewable for 10 years. The company committed to invest around US$70 million in rehabilitating and modernizing port infrastructures over the following three years. 51% of the MPDC shares were held by Portus Indico, described as a joint venture investment vehicle, while the remaining 49 per cent remained in the hands of the publicly owned ports and rail company, CFM. The investors in Portus Indico were the British Mersey Docks and Harbour Company (18.3 per cent), the Swedish company Skanska (16.33 per cent), Liscont of Portugal (14.84 per cent), and the local company Mocambique Gestores (1.53 per cent). The US$ 70 million capital program aimed to restore the port's basic land and marine infrastructure, and supply urgently needed equipment. Other projects included building new harbor offices, developing a new port entrance linking to the main highway, purchasing of new material-handling equipment, and upgrading roads. As result of the new investment the port capacity was expected to increase from 4 million to 18 million tons. By the end of 2003, total volume had increased to 4.9 million tons and container volume had increased by 15 percent since the start of the project. Over the years shares have changed hands. In April 2005, Grindrod purchased 12.24 per cent of Portus Indico from the European partners for an undisclosed sum. In November 2006, Grindrod also purchased all of Skanska's shares in MPDC. Mota Engil, the Portuguese company that owned over 80 per cent of Liscont, sold the Liscont holding in MPDC in December 2007. In 2005, Mersey Docks and Harbour was purchased by Peel Ports, the second largest ports group in Britain and Peel decided to pull out of Mozambique altogether. As a result of several shares trading, by 2007 DPWorld and Grindrod each held 48.5% of Portus Indico, with the remaining 3% owned by Mocambique Gestores. In June 2010, the government extended the concession to 2033, with na option to extend for a further ten years. In 2013, Maputo port announced it expected to exceed its previous record of 17 million tonnes in terms of cargo handling. MPDC had invested US$80 million in 2013 in facilities, part of a $2 billion investment program over five years.