Chapo relaunches coastal shipping

Maputo, 13 Apr (AIM) – Mozambican President Daniel Chapo on Friday relaunched commercial coastal shipping, and announced a series of fiscal incentives to persuade businesses to move their goods by sea rather than by road.

The relaunching of coastal shipping was marked by the entry into operation of two large cargo vessels, the “Dugongo” and the “Civitas”, acquired by private companies, which will ensure the regular transport of merchandise between the main Mozambican ports.

“Coastal shipping plays a fundamental role in stimulating the economy”, said Chapo. “It promotes greater efficiency in the transport of merchandise, it reduces logistical costs, and it stimulates the development of strategic sectors”.

He announced a series of incentives for coastal shipping, including special registration for the ships used, a favourable customs regime, a 50 per cent reduction in harbour fees, a 75 per cent reduction in fees for navigation aids, and priority for these vessels in entering and leaving the ports.

“We want to encourage Mozambican and foreign businesses to invest in coastal shipping”, said the President, adding that the government is committed to creating an environment favourable to moving goods by sea rather than by road.

The purpose is to reduce the number of trucks using the main north-south highway (EN1). The current heavy level of traffic is seriously damaging the roads. If many of the goods concerned can be moved by sea, this will reduce congestion on the roads, and will cut the number of traffic accidents.

Chapo challenged the Ministry of Transport and Logistics to recover the hegemony that coastal shipping once enjoyed. He recalled that, in the 1980s, the country had a strong publicly-owned shipping company, Navique, which managed a fleet of 21 vessels, moving an annual average of 220,000 tonnes of cargo.

The Confederation of Mozambican Business Associations (CTA) considered that relaunching coastal shipping is an opportune initiative. CTA chairperson Agostinho Vuma called for the removal of all barriers to shipping activity, including eliminating complications in customs clearance and reducing port waiting times.

He pointed out that Friday’s operation moves about 10,000 tonnes by ship, which will take between 250 and 300 trucks off the roads.
(AIM)
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