Mozambique Awards 15-Year Concession for Chongoene Port Terminal Development

Mozambique Awards 15-Year Concession for Chongoene Port Terminal Development

The Mozambican government has granted a 15-year concession for the construction, operation, maintenance, and management of the Chongoene Port Terminal in Gaza province.

This public-private partnership involves a joint venture between Chinese firm Desheng Port and the state-owned Mozambican Ports and Railways (CFM).

The concession was formalized through a decree approved by the Council of Ministers on August 26, which outlines the legal framework for this public-private partnership.

The decree emphasizes the need for a private operator to undertake the development and management of the Chongoene Port Terminal, ensuring its commercial exploitation for public port services.

The project has been awarded to Sociedade Terminal de Minérios de Chongoene SA, a company co-founded by Desheng Port and CFM.

The concessionaire is authorized to design, finance, construct, operate, manage, rehabilitate, and maintain the port infrastructure, as well as to commercially exploit and eventually return the Chongoene Port Terminal and its related facilities.

The terminal’s primary function will be the storage and handling of national heavy sands in bulk. It is expected to have an initial capacity of eight million metric tons per year, with the possibility of expansion based on demand.

The first phase of the Chongoene Port Terminal project is estimated to cost $55 million (€49.6 million). The terminal will be instrumental in exporting heavy sands from the Chibuto region, a project also spearheaded by Desheng Port, with an estimated annual production of two million tons.