Govt terminates marine concessions
Malawi Government has terminated two marine concession agreements with Mota-Engil subsidiaries Malawi Shipping Company (MSC) and Malawi Ports Company (MPC) for alleged breach of concession requirements.
The 35-year lake and ports service concessions were granted in 2010 and 2012 to allow private investor Mota-Engil take over lake transport services from State-owned Malawi Lake Services (MLS) and ports operations run by the Department of Marine Services under the Ministry of Transport and Public Works.

In an interview on Tuesday, Minister of Transport and Public Works Jacob Hara confirmed the termination of the two concessions on December 31 last year purportedly because the concessionaire failed to comply with the agreed terms such as taking care of the country’s four ports and profiting from vessels that sail on Lake Malawi.
He said: “Both concessions have been terminated because we haven’t seen much investment on the ports and there has been no substantial progress. The ports have been deteriorating and water vessels have not profited from their [MSC] investment.
“We are going to have a new company that will be running operations of both shipping and the ports. We are also doing this in preparation for acquisition of new passenger vessels on the lake.”
Hara said the agreement was mutually terminated upon analysing all implications that would arise.
But spokesperson for Mota-Engil, Thomas Chafunya, declined to comment on the development.
“This is not the right time for us to post our comment. When time is right, we will surely comment on the matter,” he said.
Veteran captain Philimon Harawa, who sails passenger vessel MV Illala, yesterday said water transport users and stakeholders including employees in the water transport industry are not affected by the development.
“Business is as usual and nothing can happen. Shipping services are still run by Mota-Engil until the government finds another company to take over,” he said.
Among other commitments in the concession, the concessionaire was required to construct a four-star hotel in Monkey Bay, Mangochi and contribute one percent of its revenue to Malawi Marine Training College (MMT), settle outstanding rental arrears of the existing fixed assets such as shipyard properties and houses.
Mota Engil procured Malawi Lake Services moveable assets at $3.5 million and was tasked to manage vessels and ports of Chilumba, Nkhata Bay, Chipoka and Monkey Bay.