Maersk and MSC, the world’s two largest container lines, are to take up to 40% of Port Louis operator Cargo Handling Corporation (CHCL) under a Mauritius port reform due by February 2027.
The government hopes the deal will revive a port that has lost ground to regional rivals. Port Louis ranks 369th of 405 ports in the World Bank’s container port performance index, behind Toamasina in Madagascar, Mayotte, Reunion and Mombasa, RFI reported (in French) on Sunday.
What does the Mauritius port reform involve?
Acting Prime Minister Arianne Navarre-Marie told parliament that the two shipping groups would acquire up to 40% of CHCL’s equity and take over its management, with the transition to be completed in February 2027, News Moris reported on 11 November. A transaction adviser to value the shares is due to be appointed by the end of November, she said.
The government will keep a majority. The cabinet gave approval in principle in March for two shipping lines to enter CHCL’s capital as minority shareholders, with private participation capped at 40% so that control of the port stays public, according to Mauritian media. Under the Mauritius port reform, the Mauritius Ports Authority will be refocused on regulating the sector, and the Ports Act is being reviewed.
Prime Minister Navin Ramgoolam met representatives of both companies in September, when they gave their agreement in principle, RFI said. The government has said no jobs will be lost under the new structure, Le Mauricien reported.
Why does Port Louis need new investors?
Port Louis has capacity for more than 1mn twenty-foot equivalent units (TEUs) a year but handles about 400,000 containers, nearly a third of them transhipped, mainly to Madagascar, Le Mauricien reported. Officials have said the island could handle more than 3mn TEUs with better infrastructure and strategic partners.
Before the Mauritius port reform, shipping lines, importers and exporters had complained about the port’s performance, according to News Moris. The government also plans an Island Container Terminal, estimated at Rs47.3bn (roughly $1bn), under a government-to-government agreement with India; a memorandum of understanding was signed on 19 October. It is part of a wider Rs56.3bn port programme, Business OI reported.
The World Bank’s Container Port Performance Index ranks ports on the time ships spend in port, a measure that matters to lines choosing where to tranship cargo bound for East Africa and the Indian Ocean islands.
What are the risks of the Mauritius port reform?
Giving shipping lines a stake in the island’s only port operator raises competition questions. A Competition Commission of Mauritius study found that MSC accounted for about half of vessel calls at Port Louis between 2018 and 2022, and recommended that the government seek its advice before any shipping line, especially MSC, takes ownership in port operations.
Neither company has published terms, and the price of the stake will depend on the valuation. Mauritius and Seychelles topped Africa in a recent capitalism index; the Mauritius port reform will test whether private partners can lift performance at a state-run hub.
FAQ
What stake will Maersk and MSC take in the Mauritius port reform?
Up to 40% of Cargo Handling Corporation, the state port operator, with the government keeping a majority.
When will the deal be completed?
The share transfer is expected to be finalised by the end of February 2027, the acting prime minister told parliament.
Will port workers lose their jobs?
The government has said there will be no job losses under the new structure, according to Le Mauricien.
How does Port Louis rank among ports?
It is 369th of 405 in the World Bank’s container port performance index, RFI reported.
