In December 2025, the Charles Telfair Centre convened 20 senior professionals and experts from the government, private sector, and academia for a workshop on increasing the competitiveness and sustainability of the Port Louis harbour. We explored tangible solutions to support the growth of the port towards greater sustainability and competitiveness. This document presents a formal analysis of their discussions and offers strategic recommendations for the port of Port Louis.
The Current Context
Seaport infrastructure is both a facilitator of trade and a key driver of national productivity. More than 80% of global trade by volume is transported by sea, and in some developing countries the figure rises to 90%, highlighting the critical role that ports play in economic resilience, energy supply, and food security (UNIDO, 2025). For Small Island Developing States (SIDS), any gain in port productivity translates directly into enhanced export competitiveness. Conversely, inefficiency acts as a de facto tariff on domestic consumption and production.
Setting the context of the discussion Prof Christian Bueger, University of Copenhagen, noted that the industry’s complexity now requires a proactive shift beyond traditional government-led management toward a multi-stakeholder model that can handle the modern challenges of decarbonisation and automated logistics.
Geopolitical instability has altered traffic patterns in the Indian Ocean. Disruptions in the Red Sea throughout 2024 and 2025 forced global shipping to reroute around the Cape of Good Hope, temporarily enhancing the strategic importance of Port Louis as a bunkering and technical stopover. However, this island view of the Indian Ocean; where small states like Mauritius, Madagascar, and the Seychelles gain agency; also embeds these nations in a context of intensifying geoeconomic competition, including between India’s "MAHASAGAR" doctrine and China’s Belt and Road Initiative (BRI).
Mauritius aims to position Port Louis as a green regional trade hub to support its blue economy. Despite this strategic foundation, the Competition Commission Market Study (2024) identified underperformance in container handling, turnaround times, and institutional coordination.Concurrently, climate change and regulations (e.g. IMO targets) are driving a global transition toward greener infrastructure.
The Container Terminal Concession Guidelines for Africa (World Bank, 2017) suggest that small island ports can overcome scale disadvantages through governance reforms and private sector partnerships.
To support this, UNEP published a toolkit for sustainable port development in the Western Indian Ocean, and the Mauritius Port Authority (MPA) is implementing the Green Port Concept.
Operational Challenges and Regional Threats
Despite its advantageous location, Port Louis faces a persistent and substantial productivity gap. According to the latest available data, Port Louis currently handles approximately 450,000 TEUs annually (Competition Commission, 2024), while comparably positioned hubs such as Colombo process over 7 million TEUs, and Tanjung Pelepas in Malaysia exceeds 11 million TEUs.
The World Bank’s Container Port Performance Index ranked Port Louis 369th globally, placing it well below regional competitors such as Durban and Mombasa. The Container Port Performance Index (World Bank, 2022) cited equipment downtime and swell-related disruptions as key bottlenecks. In response, the Cargo Handling Corporation Ltd (CHCL) launched a Rs 5.3 billion modernisation plan in late 2025 to increase capacity to 1.1 million TEUs by 2030, targeting full terminal digitalisation by 2026.
However, expanding port capacity significantly without securing firm volume commitments from international shipping lines carries considerable financial risk. This is particularly pertinent given that a substantial portion of current transshipment volumes originates from Madagascar, which currently lacks deep-water port facilities. Once the JICA-financed Toamasina port expansion is completed, Madagascar-bound cargo that currently transships through Port Louis is likely to be handled directly at Toamasina, eroding a key pillar of Mauritian throughput.
Regionally, competition is, hence, mounting. The Toamasina Port in Madagascar poses a significant economic challenge to Mauritian transshipment ambitions. With expansion progress at 52% by early 2025 and a new 16-meter depth berth due in March 2026 (SPAT, 2025), Toamasina will soon handle large-capacity vessels that previously favoured Port Louis or Durban.
Recognising these shifts, the UNCTAD Sustainable Smart Port Assessment Report (2025) for Port Louis asserts that sustainability is now a core requirement for relevance in green shipping corridors.
Priorities for Competitiveness
The workshop highlighted three priority areas:
- Regional Security: Cooperation to secure food, energy, and maritime interests.
- Governance Reform: Addressing internal constraints to catalyse a commercial vision.
Sustainable Infrastructure: Establishing the port as a regional Green Hub.
Competitiveness must be viewed through a global lens. While Western markets remain important, a "Look Africa" policy is central to long-term strategy. The African Continental Free Trade Area (AfCFTA) positions neighbouring markets as the primary frontier for growth, requiring a disconnect between government and the private sector to be bridged.
Raj Mohabeer, Indian Ocean Commission (IOC) emphasised a regional approach to development, stressing specific focus areas:
Sustainability: Ports must adopt climate risk modelling and nature-based solutions. Mauritius is pursuing shore-to-ship power supply to reduce emissions.
The Mauritius Ports Authority (MPA) has formalised this with Japanese partners via solar power expansion, efficiency upgrades, climate impact mitigation, and regulatory compliance.
- Food Security: The 2025-2026 IOC Summits proposed a regional food security strategy. The Economic Development Board (EDB) is tasked with creating a supply calendar to replace distant imports with regional produce, positioning Port Louis as a food distribution hub.
- Maritime Security and Safety: Maintaining the safety of Western Indian Ocean trade corridors is a collective responsibility. By 2026, regional surveillance will be an essential requirement to prevent criminal operations from exploiting security loopholes, ensure search and rescue, and reduce risks from accidents and collisions.
- Energy Security: Ports are evolving into renewable energy platforms, enabling alternative fuel supply chains and acting as hubs for clean hydrogen storage and export.
Norms: Improving compliance with international standards, specifically the ISPS Code and MARPOL, is required to maintain regional competitiveness.
Mauritius and the Competitive Gap
Despite its advantageous location, the port of Port Louis faces a persistent gap between its potential and its productivity. The World Bank’s Container Port Performance Index ranked the port 369th globally, citing operational bottlenecks such as equipment downtime and swell-related disruptions. While the Cargo Handling Corporation Ltd (CHCL) launched a modernisation plan in late 2025 to increase container handling capacity to 1.1 million TEUs by 2030, the port faces rising regional competition.
In the 2026 maritime landscape, the commercial viability of Mauritius is under intense scrutiny, as articulated by private sector leaders who view the current state of Port Louis Harbour as a series of missed opportunities. Mauritius has not yet been able to fully capitalise on its geographic advantage. Exercising institutional agency would require transitioning from being a passive "rule-taker" to a proactive shaper of policy. In the port sector, this calls for a shift from merely serving regional trade to capturing the large potential of global East-West trade lanes connecting Asia to Latin America and Africa.
Mehul Bhatt, Chairperson, Connectivity Workgroup, Business Mauritius shared how the disparity between Mauritius and other successful island hubs is often framed as an inevitability of size.
Yet, according to him, a comparison with the thriving port economy of Singapore reveals that success is the result of deliberate choices rather than mere geography. Despite being one-third the size of Mauritius, Singapore handles 40 million TEUs (Twenty-foot Equivalent Units), while Mauritius handles 700,000 and is currently in decline. For Mauritius, the current challenge in reaching a potential of 3 to 5 million TEUs is the brick wall constituted by institutional stagnation and a lack of accountability.
Governance and Institutional Challenges
Governance
A primary constraint identified by participants is the current governance structure. For nearly three decades, the failure to separate the regulatory, ownership, and operational functions of the port has created a lack of accountability and foresight. The Mauritius Ports Authority (MPA) operates with a conflict of interest as it functions simultaneously as the regulator, landlord, and operator.
This structure has generated a "trust deficit" among international players. One senior leader noted that a recent mobile crane tender attracted only one applicant, suggesting that major industry players may no longer view Mauritius as a reliable partner.
Labour and Modernisation
The workshop identified labour dynamics as another factor slowing evolution. With a workforce of approximately 1,400 employees, the Cargo Handling Corporation Ltd (CHCL) is often viewed as a political stronghold.
Entrenched practices, such as hereditary employment, make the system resistant to modernisation. While political sensitivity often prevents leadership from acting, participants argued that a strategic private partner could depoliticise workforce management. Somme suggestions included introducing a Voluntary Retirement Scheme (VRS) and improving working conditions for skilled labour. While specific tools remained to be reviewed there was consensus that these should allow the port to transition the workforce toward high-productivity roles.
Strategic Opportunities: Green and Connected
Commercial Vision and Regional Connectivity
To reclaim its standing, Mauritius must pivot toward an "ecosystem approach". The port must move from being a public utility for local consumption to an external-looking, revenue-generating commercial asset.
Given that the domestic Mauritian market is too small to attract global shipping giants on its own, transshipment is the only mechanism to provide the volume necessary to maintain relevance.
This commercial vision must align with the African Continental Free Trade Area (AfCFTA). The entry into force of the AfCFTA makes neighbouring African markets the primary frontier for Mauritian maritime growth. The port has the potential to become a regional food security hub by aggregating demand for commodities like maize and coordinating supply chains with partners like Kenya and Madagascar.
Resilience and the Blue Transition The climate crisis is pushing ports to transition toward greener infrastructure. Sustainability is no longer a peripheral concern but a requirement for remaining relevant in green shipping corridors. The Mauritius Ports Authority has formalised this transition through strategic pillars including solar power expansion and efficiency upgrades.
However, Dr. Chime Youdon from the National Maritime Foundation highlighted a "resilience gap" in current strategies. While stakeholders focus on mitigation (e.g., solar panels), there is a failure to address the port's capacity to survive extreme climate events. Projections indicate that sea-level rise and high-intensity cyclones could threaten operations for extended periods. To combat this, the port must move away from static engineering toward modular designs and nature-based solutions.
Key Policy Recommendations
To transform Port Louis Harbour into a premier global maritime hub, the following recommendations are proposed:
For Governance and Reform
Separate Regulatory and Operational Functions:
The government should complete the transition toward a "landlord" model as outlined in the 1998 Ports Act. This involves clearly delineating the roles of regulator, owner, and operator to allow the MPA to focus on long-term planning while granting operational entities the flexibility to respond to market demands.
Specific Tools:
- Secondary Legislation: Urgently finalise secondary legislation required by the 1998 Port Act to allow for public-private partnerships (PPP) and private terminal operators.
- Commercial Asset Status: Formalise a policy shift that treats Port Louis Harbour as a revenue-generating commercial entity rather than a public utility.
Establish an Empowered Implementation Task Force:
To address the implementation gap, create a high-level, multi-sector team with the authority to bypass bureaucratic hurdles.
Specific Tools:
Empowered Implementation Team: Create a dedicated team with the authority to implement urgent solutions for equipment shortages and modernisation.
Address Labour Dynamics through Dialogue:
Initiate structured mediation between CHCL labour unions and potential private partners.
Specific Tools:
- Voluntary Retirement Scheme (VRS): Analyse the feasibility of a VRS to offer a fair exit strategy for some of the workforce while transitioning the remainder to a productivity-linked reward system.
- Structured Mediation: Initiate dialogue to create a bargain that guarantees job security while allowing for private investment.
For Commercial and Regional Strategy
Execute a "Transshipment-First" Strategy:
Enhance transshipment as a core economic objective to maintain relevance with global shipping lines. Bringing in a private, independent operator, such as a Global Terminal Operator, would support greater efficiency, attract investment and depoliticise operations. One possible path suggested in the workshop is to secure binding volume commitments from major shipping lines and to involve them in the operations and governance of the transshipment terminal. While that last option remains open to discussion, there was a consensus of the need to involve a private independent operator for improved operations.
Specific Tools:
- Regional Feeder Network: Develop a dedicated regional feeder service in conjunction with established shipping lines to connect Mauritius with Madagascar, Reunion, Seychelles and the East African coast. Rather than Mauritius launching such a service unilaterally, partnership with carrier groups that already operate in the Indian Ocean basin would provide both commercial credibility and operational viability, reducing the financial exposure to the Mauritian state.
- AfCFTA Integration: Use the African Continental Free Trade Area to embed the port into larger continental value chains. It should be noted, however, that the larger transshipment opportunity for Port Louis lies in capturing East-West trade flows connecting Asia to the Americas. Latin America, in particular, represents a substantial and growing cargo market, and to a lesser extent, so does the North American eastern seaboard. Positioning Port Louis on the Asia-Americas routing via the Cape of Good Hope corridor would yield considerably higher volumes than intra-African feeder traffic alone. The AfCFTA strategy should therefore be pursued in parallel with, rather than as a substitute for, an Americas-oriented transshipment proposition.
Operationalise the Regional Food Security Hub:
The Economic Development Board (EDB) should lead a joint working group with regional peers to align port logistics with regional food security needs.
Specific Tools:
- Regional Strategic Alignment: Establish a joint working group between regional EDBs (Mauritius, Madagascar, Kenya) to align port logistics with regional food security needs (e.g., maize and fish).
Restore International Credibility:
Move from assertion-based planning to evidence-based action to consolidate credibility with global maritime partners.
Specific Tools:
- Port Performance Dashboard: Create a public dashboard to track vessel turnaround times and equipment availability.
- Port State Control: Increase funding and technical training for maritime surveyors to bring vessel inspection standards up to IMO benchmarks.
For Sustainability and Resilience
Pioneer the "Green Port Ecosystem":
Position Mauritius as the first green port in the Southern Hemisphere by implementing a "Blue Economy" framework.
Specific Tools:
- Shore Power: Transition Port Louis to a "Plug-In" port where vessels use shore-side electricity.
Solar and Electrification Pilot:
Prioritise solar PV installation for the terminal and the electrification of quay cranes
- Green Bunkering Hub: Develop Port Louis as a regional green bunkering hub, positioning Mauritius to supply alternative marine fuels including green methanol, bio-LNG, and green ammonia to vessels transiting the Indian Ocean. With the IMO’s tightening emissions targets and the growing number of dual-fuel vessels entering service, bunkering infrastructure for low-carbon fuels represents a high-value commercial opportunity. Mauritius could leverage its renewable energy potential (solar and offshore wind) to produce green hydrogen derivatives on-island, creating a vertically integrated clean fuel supply chain. Establishing such a capability early would give Port Louis a first-mover advantage in this part of the world, complementing its green port credentials with a revenue-generating service that global shipping lines are increasingly seeking.
Adopt Climate Resilience Standards:
Implement the "Pillars of Port Adaptive Capacity" by integrating climate data into master planning.
Specific Tools:
- Disaster and Climate Risk Management (DCRM) Tool: Develop a DCRM tool to establish standard operating procedures for port infrastructure.
- Nature-Based Solutions: Invest quality data on and for ecological protection, such as coastal restoration, to act as a natural buffer.
References:
Baruah, D. M. (2025). [Title of publication regarding Indian Ocean geopolitics].
Competition Commission of Mauritius. (2024). Market study on the port sector.
Government of Mauritius. (1998). The Ports Act 1998.
Notteboom, T., & Lam, J. S. L. (2018). The green port: Strategies and challenges. [Inferred Title based on context of citation].
Société du Port à Gestion Autonome de Toamasina (SPAT). (2025). Port expansion progress report.
United Nations Conference on Trade and Development (UNCTAD). (2024). Review of maritime transport 2024. [Inferred based on context of trade volume data].
United Nations Conference on Trade and Development (UNCTAD). (2025). Sustainable smart port assessment report: Port Louis.
United Nations Environment Programme (UNEP). (n.d.). Toolkit towards sustainable port development for the Western Indian Ocean region.
United Nations Industrial Development Organization (UNIDO). (2025). Industrial development report 2025. [Inferred based on context of economic resilience].
World Bank. (2017). Container terminal concession guidelines for Africa.
World Bank. (2022). The container port performance index 2022.
Main Photo from Freepik
Charles Telfair Centre is an independent nonpartisan not for profit organisation and does not take specific positions. All views, positions, and conclusions expressed in our publications are solely those of the author(s).
Note on Methodology & AI Assistance
The development of this policy brief incorporated the use of artificial intelligence (AI) technologies. The specific applications included:
- Transcription: AI-powered services provided a complete text record of the workshop discussions.
- Thematic Analysis: The transcript was processed by an AI model to perform an initial analysis, helping to identify and categorize the primary themes and arguments that emerged.
- Language Refinement: The final draft was reviewed with AI-driven tools to enhance grammar, style, and overall readability.
* Thank you to Mehul Bhatt and Christian Bueger for reviews and feedback on earlier versions of this policy brief.
