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Restructuring of Cargo Handling Corporation Ltd (CHCL)

Sector
Transport
Scope
TA
Grant Amount
EUR 1,200,000
Total project cost
EUR 42,100,000
Status
Under disbursement
PFG Lead Financier
AFD

Handling in Port-Louis harbour is the responsibility of Cargo Handling Corporation Ltd (CHCL) whose shareholders are the Mauritian State, the State Investment Corporation (SIC) and MPA. CHCL has developed a restructuring / recovery plan, endorsed by its shareholders, which involves a recapitalization, financial management recovery (reducing the relative weight of the wage bill, increasing profitability), achieving an investment program, and increasing the productivity of operations, including training and technical support.

The total cost of the project is EUR 38 million, of which AFD would finance EUR 27 million through a loan to the Mauritian State (52% to be invested as equity in CHCL and 48% to be on-lent to CHCL); the remainder will be funded by CHCL.

A first disbursement of EUR 4,5 million was made at the end of 2015 to support the investments (refurbishment of cranes, acquisition of tractors/trailers, acquisition of reachstackers...)

In addition with the AFD loan (EUR 27 million), the EU-AITF technical assistance will finance two components:

- Capacity building (EUR 0.7 million): this grant component will support the training of operators so that once the new equipment is commissioned, operators are fully trained to perform their duties. CHCL has specially recruited a professional with wide international exposure (a Chief Operations Officer) to train operators with a view to foster an international benchmark and improve work practices and organizational efficiency. Moreover, he will develop and implement a management training program to reinforce middle management as well as senior management.

- Consultancy services for improving the performance of CHCL (EUR 0.5 million): the study will focus on the performance of the handling company, improving productivity in relation with the perspective of the further developments, and will explore, in case of failure, solutions involving private partners.

06/2016