Dubai’s DP World Wins Port of Luanda Concession

The Angolan government has awarded DP World, a Dubai-based port company, a 20-year concession for the operation of the Multi-Purpose Terminal at the Port of Luanda, which is expected to yield to the Portuguese-speaking State close to USD 1,000 million.

The public tender, initially had expressions of interest from nine candidates, but, in addition to DP World, only 4 submitted proposals: Angola’s Multiparque Terminal Link and foreign companies Sifax Group (Nigeria), ICTS International Container Terminal Services (Philippines) and the SAS/ MPLFI MSC consortium.

DP World plans to invest USD 190 million during the concession period, for the rehabilitation of existing infrastructure and the acquisition of new equipment, with the aim of increasing the platform’s capacity to around 700,000 TEUs (unit equivalent to one 20 feet container) per year.

The Port of Luanda Multi-Purpose Terminal has an area of ​​181 thousand square meters and a processing capacity of 2.6 million tons/ year.

The infrastructure will be the first to be operated and managed by DP World in the region.

The Ministry of Transport approved the final report of the international public tender, launched in December 2019, for the concession of the Terminal, submitted by the Evaluation Committee, which classified the proposal submitted by DP World Ltd as the one that “globally most satisfies the public interest”.

The proposal submitted by DP World Ltd presents as an advantage payments that over the concession period will represent more than USD 1,000 million, of which USD 150 million will be paid on the date of signing the contract.

The investment plan provides for the rehabilitation of the physical infrastructure of the MPT wharf, implementing a new MPT plan. The maintenance of jobs for the personnel assigned to the terminal was also considered an advantage.

The DP World Group (Dubai Ports World) currently operates 78 maritime and land terminals in 40 countries, with 36,500 employees.

In Brazil, it has one of the largest terminals in the Port of Santos, with an annual turnover of 1.2 million TEUs.

The international tender was opened following the termination by the Angolan Government of the concession contract for the port terminals of Luanda and Lobito, operated by Soportos – Transporte e Descarga, under a 20-year concession. Connected to the previous concessionaire was General Manuel Hélder Vieira Dias “Kopelipa”, former head of the Security Cabinet of the former Angolan president, José Eduardo dos Santos.

“Kopelipa” was present in the formal and voluntary delivery to the Asset Recovery Directorate of the Attorney General’s Office of the multi-purpose terminals of the port of Luanda and Lobito, in 2019. In a press release then disclosed, he stated that he participated in the quality of “legal representative” of a family shareholder of Soportos, José Cordeiro dos Santos, absent from the country due to illness.

Mandatory requirements for participation in the concession tender included, among others, the requirement for an average annual turnover for the last three fiscal years not less than the equivalent of USD 100 million, a net asset not less than the equivalent of USD 100 million  and paid-in equity not less than the equivalent to USD 25 million.

The initial deadline for submitting applications was extended twice due to the Covid-19 pandemic.

Since 2002, the authorities have made major investments in the rehabilitation of roads, railways, seaports and airports. Public finance data suggest that the government spent more than USD 38 billion on transport infrastructure during 2002-18 with around 70% invested in roads, which on average corresponds to USD 2.3 billion per year and 2.4% of GDP.

 

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