Mozambique’s government has approved a decree authorizing the Ministers of Transport and Logistics, and Agriculture, Environment and Fisheries to sign the concession contract for the construction of the Chongoene Port Terminal in Gaza province, located in the southern region of the country.
The decision was announced in the final communiqué of the cabinet meeting held on Tuesday, confirming the government’s intention to move forward with the project through a public-private partnership (PPP).
The decree ensures continuity of the contract with the concessionaire, Sociedade Terminal de Minérios de Chongoene S.A., which is authorized to provide comprehensive port services, including the design, financing, construction, operation, and management of the terminal infrastructure.
The 15-year concession has been awarded to a consortium formed by Chinese company Desheng Port and Mozambique’s state-owned rail operator Caminhos de Ferro de Moçambique (CFM).
According to a cabinet decree dated August 26, 2024, the terminal will serve as a key logistics hub, enabling large-scale development projects in Gaza province.
Chief among these is the Chibuto Heavy Sands project, which underpins the viability of the port infrastructure.
Under the terms of the agreement, the concessionaire is granted the exclusive right to “design, finance, build, own, operate, manage, rehabilitate, maintain, commercially exploit, and develop the port infrastructure of the Chongoene Port Terminal and all related and auxiliary infrastructure.”
The primary function of the terminal will be the storage and handling of bulk domestic heavy sands, with an initial minimum capacity of 8 million metric tonnes per year, scalable based on future demand.
The first phase of the terminal’s development is budgeted at $55 million USD (€49.6 million). The project is expected to be driven by exports of heavy sands from Chibuto, a mining operation led by Desheng, which anticipates an annual production of 2 million tonnes.
In addition to the terminal, the project includes the construction of a 73-kilometer railway line, which will link the port to key mining and production areas.
This multimodal infrastructure is intended to strengthen Mozambique’s export capabilities and enhance economic growth in the southern region.
