The Mauritian government has taken a step forward in its plan to open up the capital of Cargo Handling Corporation Ltd (CHCL) to private port operators. A meeting was held at the Prime Minister's Office, led by Prime Minister Navin Ramgoolam, with the presence of the Labour Minister and representatives from Maersk and Mediterranean Shipping Company (MSC). The meeting discussed the modalities of the proposed reform to modernize port operations. An agreement is expected to be signed soon, allowing the international groups to play a role in managing cargo handling at Port-Louis.
According to sources, Maersk and MSC will take a 40% stake in CHCL, while the Mauritian government will retain the remaining 60%. Maersk had reportedly sought a larger stake, but the government declined, considering port activities strategic to the Mauritian economy. The next step will be the appointment of a Transaction Advisor to evaluate the assets as part of the operation. The investment aims to upgrade port equipment and strengthen Port-Louis' position on major shipping routes.
However, unions at CHCL have expressed concerns about the development. Gérard Bertrand, president of the Joint Negotiating Panel (JNP), stated that the unions were surprised to learn about the meeting and had already opposed the privatization of CHCL. The unions argue that the company's financial situation, with over Rs 750 million in profits at the end of the 2025 financial year, does not justify selling a stake.
The unions are demanding guarantees that the traffic handled by CHCL will be maintained and that their working conditions will not be affected. While Maersk has provided assurances on job security, the unions require guarantees on service conditions, which are governed by a collective agreement. Gérard Bertrand emphasized that the unions are open to discussions but want the government to engage in formal negotiations before finalizing the operation.
The unions are also critical of CHCL's management and have called for the non-renewal of the contract of the company's director general, Gassen Dorsamy. Gérard Bertrand stated that the unions are not opposed to port development but want to ensure that workers' rights are protected. The proposed investment by Maersk and MSC aims to enhance Port-Louis' position as a major shipping hub.
The Mauritian government has assured that the operation will be carried out in a transparent manner. The Prime Minister's Office has not commented on the specific details of the agreement, but sources indicate that the deal is expected to be finalized soon. The investment is expected to bring in new technology and expertise to upgrade port operations.
The outcome of the negotiations between the government and the unions will be crucial in determining the future of CHCL and the port sector in Mauritius. The country's port operations are a significant contributor to its economy, and any changes to the management structure are being closely watched by stakeholders. The government's handling of the situation will be critical in ensuring a smooth transition.
Key points
- Unions at CHCL demand guarantees on job security and working conditions before Maersk and MSC invest $40% stake.
- The Mauritian government aims to upgrade port operations and strengthen Port-Louis' position as a major shipping hub.
- The proposed investment by Maersk and MSC is expected to bring in new technology and expertise to enhance port operations.
