Mozambican private sector pushes for competitive coastal transport

High cargo handling costs in Mozambican ports and excessive red tape are the main reasons why companies avoid using coastal transport and prefer sending their goods by road, according to a report drawn up by the Confederation of Mozambican Business Associations (CTA).The report on “Restructuring and Reviving Coastal Transport” was presented last week. According to a report in Monday’s issue of the independent newssheet “Mediafax”, it calls for an overhaul of the legal framework and the design of a plan of action to transform coastal transport into a factor that dynamises economic growth. Faruque Assubuje, head of the transport portfolio in the CTA, declared “what we want to discuss with the government are the problems facing coastal transport in the country and to propose solutions. Operating in this sector has become expensive compared with the past, and we have to identify the factors behind this”.“With this research”, he added, “the CTA intends to contribute towards identifying the essential factors for restructuring coastal transport in order to reduce the transaction costs for businesses in Mozambique”.The government, represented at the launch of the report by Jafar Ruby, Chairperson of the National Naval Institute (INAMAR), admitted that the concerns of private business were legitimate, but claimed they could only be overcome with the involvement of all interested parties.“We understand there is a series of constraints facing coastal shipping in Mozambique, and we must have the courage to face them”, Ruby said. “But the solution does not lie exclusively in the hands of the transport and communications sector. It’s a multi-sector question which demands the involvement of the Finance Ministry, the Ministry of Industry and Trade, and the private sector. We must look for solutions together”.