CAPE TOWN, Jan 27 (AGCNewsNet) –Mozambique's Maputo Port has commenced construction on the first phase of its $2 billion expansion initiative, aiming to establish itself as a key regional shipment hub, a senior port official announced on Monday.

First Phase Highlights

· The $164 million initial phase will double the container terminal's capacity from 255,000 TEUs (twenty-foot equivalent units) per year to 530,000 TEUs.

· Infrastructure upgrades include extending the quay from 250 meters to 650 meters and deepening the berth draft to 16 meters to accommodate larger ships.

· The first phase is expected to be completed within two years.

The expansion project comes as increased logistics challenges in neighboring South Africa drive commodity exporters to explore alternative routes.

Osorio Lucas, CEO of the Maputo Port Development Company (MPDC), highlighted the project's significance in enhancing the port's capacity and efficiency. MPDC is a consortium comprising multinational logistics company DP World, South Africa’s Grindrod, and state-owned Mozambique rail operator Caminhos de Ferro de Mocambique.

Following a brief decline in exports due to civil unrest linked to disputed elections in Mozambique last year, Lucas expressed optimism that port operations would regain momentum starting next month.

This development reinforces Maputo Port's vision to become a major gateway for trade in Southern Africa.