Mozambican state-owned company Sociedade Portos de Cabo Delgado awarded concession of ports of Pemba and Palma

23 January 2014

The Mozambican government Wednesday formally awarded the concession of port and logistics terminals of Pemba and Palma to state-owned management company Sociedade Portos de Cabo Delgado, Mozambican news agency AIM reported.

Sociedade Portos de Cabo Delgado is a partnership between state port and rail manager Portos e Caminhos de Ferro de Moçambique (CFM) and oil and gas company Empresa Nacional de Hidrocarbonetos (ENH), each with 50 percent. The concession of the Pemba and Palma terminals, for a period of 30 years, was approved in December 2013.

The president of Sociedade Portos de Cabo Delgado, John Kachamila, said at the time that the company would make an initial investment of around US$150 million to build infrastructure, with a view to providing the logistics needed to develop the natural gas industry in Cabo Delgado.

The main purpose of the port of Palma will be to export liquid natural gas (LNG), the exploration project for which is scheduled to begin in 2015.

In Pemba another port will be built next to the current port that is managed by CFM. This new port will be built and managed under a special regime that will allow it to attract private investment.

The two ports will be points of entry for all the equipment needed for gas companies prospecting in the Rovuma basin to operate and for exporting the final products, particularly LNG.

Sociedade Portos de Cabo Delgado is also charged with identifying and publicising all upstream business opportunities in Cabo Delgado province, to Mozambican businesspeople. (macauhub)