July 20, 2024

Cape Verde ports see 43.6% profit drop in 2023 amid changing maritime trends

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Cape Verde ports see 43.6% profit drop in 2023 amid changing maritime trends

Cape Verde ports see 43.6% profit drop in 2023 amid changing maritime trends

Cape Verde’s port management company, Enapor, reported a significant 43.6% decline in profits for 2023 compared to the previous year, according to the company’s annual report and financial statements.

Enapor, a public enterprise listed for sub-concession of services, concluded 2023 with profits amounting to 144.3 million escudos (approximately 1.3 million euros).

This figure represents a decrease of 111.4 million escudos (around 1 million euros) from the previous year’s results, as detailed in the report accessed by Lusa.

Impact of Maritime Traffic Shifts

The company attributed the profit decrease to a reduction in the tariffs applied to long-haul vessels docking in Cape Verde, which saw an 11.83% decline.

This reduction was due to the fact that these vessels spent fewer days in the archipelago and were smaller in size, directly impacting the revenue.

Despite a slight increase in container traffic on long-haul ships, Enapor highlighted that the tariff for empty 40-foot containers was reduced. This contributed to the overall financial decline.

Operational Performance and Service Provision

Enapor’s operational results saw a 5% decrease compared to the previous year, with a notable 7% drop in service provision.

Nonetheless, the company’s president, Irineu Camacho, presented a “positive balance” for the 2023 economic year, noting a 7.9% increase in passenger movement through the country’s ports.

Additionally, there was a modest increase in container traffic (0.8%) and ship calls (2.6%).

The volume of goods handled also rose by 6.7%, although the revenue from these operations fell by 7.2%.

Future Prospects and Privatization Plans

In March, the Cape Verdean government initiated a public consultation for the sub-concession of Enapor’s port services, as part of its broader privatization strategy set to be completed by mid-2025.

The government aims to finalize the Enapor sub-concession process by the end of the year, with the signing of a contract with a selected international operator.

The sub-concession, which will last up to 30 years with an initial term of 15 years renewable for an additional 15 years, covers a wide range of port services.

These include bunkering operations, storage, loading and unloading, equipment rental, water and energy supply, commercial space management, mooring/unmooring, and towing and piloting.

Despite the sub-concession plans, the state will retain ownership of the country’s nine ports and their infrastructure.

A Challenging Year Ahead

As Cape Verde navigates through these economic challenges, Enapor’s focus remains on adapting to shifting maritime trends and improving efficiency in service delivery.

The anticipated privatization and strategic partnerships are expected to bring new opportunities for growth and modernization, ensuring the ports can better serve the nation’s economic needs in the years to come.

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