Mauritius unions draw line over $1bn container terminal

Port unions in Mauritius are demanding safeguards for existing cargo-handling jobs as the government pushes ahead with a $1bn India-backed expansion of Port Louis.

The Front Syndical Portuaire has said it is prepared to discuss the proposed Island Container Terminal but wants guarantees that at least 1m containers will continue to be handled by state-controlled Cargo Handling Corporation.

The terminal is one of the largest infrastructure projects planned for Mauritius. Government plans call for a roughly 2 km breakwater, an 18 m-deep navigation channel, around 60 ha of reclamation, a 1.2 km quay and a 50 ha container yard capable of handling about 1.8m teu.

The project is being developed under a government-to-government arrangement with India and is intended to strengthen Port Louis as an Indian Ocean transhipment hub. Mauritius has budgeted around $1bn for the scheme.

The debate has an additional commercial dimension. Earlier this year the government backed, in principle, opening up to 40% of Cargo Handling Corporation’s capital to Maersk and MSC, subject to procurement and competition rules.

Mauritius says a second container-handling licence will be issued to an international operator as part of the expansion.