Mozambique Relaunches Coastal Shipping to Ease Road Congestion and Boost Trade

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On Friday, Mozambican President Daniel Chapo officially relaunched commercial coastal shipping and introduced a range of fiscal incentives aimed at encouraging businesses to shift cargo transport from roads to the sea.

This initiative coincides with the launch of two new cargo vessels, the Dugongo and Civitas, purchased by private companies. These ships will provide regular freight services between Mozambique’s key ports. “Coastal shipping plays a vital role in driving economic growth,” said Chapo. “It enhances transport efficiency, cuts logistical costs, and supports the development of key sectors.”

To support this mode of transport, the government is rolling out several incentives, including special vessel registration, a favorable customs framework, a 50% reduction in port fees, a 75% cut in navigation aid fees, and priority docking access for coastal shipping vessels.

The President expressed the government’s intention to foster a more business-friendly environment for sea transport, aiming to reduce reliance on the north-south EN1 highway. Diverting freight to sea routes will ease road congestion, lower accident rates, and prevent further damage to the already overburdened highway.

Chapo also challenged the Ministry of Transport and Logistics to restore the prominence coastal shipping once held. He reminisced about the 1980s, when state-run shipping company Navique operated 21 ships and moved around 220,000 tonnes of cargo annually.

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The Confederation of Mozambican Business Associations (CTA) welcomed the relaunch as timely. CTA president Agostinho Vuma emphasized the need to eliminate barriers to maritime trade, such as customs bottlenecks and port delays. Friday’s launch alone will move approximately 10,000 tonnes of goods by sea, potentially removing 250 to 300 trucks from the roads.