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Fri 3 Jun 2011 02:04 PM

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DP World-operated port plans $1bn investment

Mozambique port, part-owned by Dubai firm, will see investment over the next 20 years

DP World-operated port plans $1bn investment
Dubai ports, Dubai logistics

Mozambique's Ports Development Company (MPDC), part-owned by Dubai's DP World, has announced a $1bn investment over the next 20 years to improve infrastructure in the country's main port to meet international demands.

"We think that it is a good time to invest because the demand is there and what we need to do is to create the gateway, developing the infrastructures to take these commodities to the market," MPDC chief executive Dave Rennie said.

Rennie added that India and China were markets that needed to be serviced.

MPDC, whose owners are South African logistics firm Grindrod and Dubai-based port operator DP World, raised its investment from $750 million pledged in January saying it now also wanted to add rail facilities within the port.

Last year, DP World announced that its concession for the port of Maputo, Mozambique has been extended to 2033 with an option to extend for a further ten years.

DP World holds the concession to operate the container terminal at the port, with DP World Maputo operating the terminal.

The concession was originally due to expire in 2018, the company said.

DP World spent $32 million on a stake in the Mozambique company that manages the port of Maputo in 2008. DP World bought 48.5 percent of Portus Indico-Sociedade de Servicos Portuarios.

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