The maritime cabotage in Mozambique

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With the support of the Fund for the Business Environment (FAN), the CTA conducted a survey on maritime cabotage in Mozambique, presented on April 30.

Maritime cabotage is defined as navigation between two ports (a port of loading and port of unloading) located in the same country, regardless of the country of registration of boats. Widely used during the colonial era, cabotage has weakened in recent years, although it has many advantages: 

  • environment friendly (reducing emissions), cost efficiency (fuel consumption by tonne by road is 31.33 grams, 8.91 by rail and 4.82 by sea);
  • the increased use of cabotage routes decrease the number of trucks, which would minimize maintenance costs roads at the expense of the state),
  • and secure (security for the transport of flammable or hazardous materials, reduced possibilities of road accidents).

However, cabotage suffers from many constraints:

  • Maritime and ports: obligation to use piloting and towing services in the ports of Mozambique for all ships, including for cabotage; delays in berthing; high costs of rental equipment for cargo handling; high and disparate shipping tax between ports.
  • Customs: freight cabotage is subject to the same customs treatment (inspections — scanner and physical) as imports, delays and cost uncertainties in the course of commercial activities.
  • Migration: liability of members of crews, especially of foreign-flag ships, migratory regularization inspections and procedures.

Therefore, it is recommended:

  • The institutionalization of a regulatory port entity.
  • Approval of a legal regime, fiscal and customs for the port sector in general and particularly in the subsector of cabotage.
  • Elimination or minimization of the subjection of cabotage cargo to customs procedures. 
  • Elimination or exemptions from customs duties on equipment imports.
  • Elimination or reduction of certain maritime and port taxes. 
  • Regulation to set standard indicators of port productivity.
  • Adoption of double registration of vessels.
  • Encouragement of the management of port and customs operations with the help of modern technology.