CHCL Commits Rs 5.3 Billion to Modernise Port

The ambitious five-year business plan, approved by the government and presented by Managing Director Gassen Dorsamy, seeks to address persistent challenges and boost the port’s competitiveness. The Cargo Handling Corporation Ltd (CHCL) is investing Rs 5.3 billion over the next five years to modernise its operations and safeguard its position as a key transshipment hub in the Indian Ocean.

The CHCL’s current concession with the Mauritius Ports Authority (MPA) expires in December, making a robust strategy crucial for its renewal.

The port faces increasing pressure from regional rivals, particularly the port of Toamasina in Madagascar, where Mr Dorsamy previously worked.

A central element of the plan is to raise container handling capacity to 1.1 million TEUs (twenty-foot equivalent units) by 2030, a significant increase from the record 700,000 processed between July 2024 and June 2025.

This growth is contingent on a major investment in new equipment, including three Super Post-Panamax cranes. An urgent tender for the cranes is set to be issued this month.

The investment of Rs 5.3 billion includes Rs 3.8 billion allocated for the first three years, with Rs 2 billion already secured from CHCL’s reserves.

The company is currently finalising an additional Rs 1.3 billion in funding from a consortium of local and foreign banks.

In a move to increase productivity and meet international standards, the CHCL will focus on technology and digitisation.

By 2026, the company aims to have a fully digitalised and automated terminal to reduce vessel turnaround times and prevent operational disruptions.

The plan also addresses environmental concerns by prioritising the acquisition of equipment that reduces carbon emissions.

Eight of the current 16 diesel-powered rubber-tyred gantry cranes will be converted to hybrid models.

Furthermore, the CHCL is tackling a shortage of skilled labour by establishing a new training centre. The Indian government is providing a simulator valued at more than Rs 25 million and a trainer to support the initiative. The company has also hired an engineer to overhaul its maintenance system to ensure equipment reliability.

Mr Dorsamy underscored the importance of maintaining transshipment activity, which accounts for over 50% of the port’s business.

He warned that a decline in transshipment would cause a 60% drop in vessel calls, leading to increased freight costs and negative impacts on the national economy.

Since March, the CHCL has expanded its services to include vehicle transshipment, with a focus on serving local and regional markets, notably Madagascar and the Comoros, with vehicles mainly from India.

Source: l’Express