A solution to drive down costs of doing business

Dry ports are helping to reduce logistics costs by taking pressure off the maritime gateways, with the Mombasa Dry Ports and Komatipoort singled out as examples of what can be achieved. Africa has over 40 dry ports and inland container depots, more than on any other continent, according to Victor O Nyakinda, a climate finance, circular economy, and green infrastructure consultant. According to the African Development Bank (AfDB), African countries pay 40-70% more on average in international transport costs for imports than other developing regions. Transport costs in Africa’s 16 landlocked countries are up to four times higher than coastal regions, with freight costs accounting for at least 20% of the total import value. Their fragile infrastructure, complex customs, border management and administrative setup result in higher transaction costs, restricting the capacity of landlocked countries to compete favourably in international markets, according to the bank. Dry ports ease seaport congestion, allow inland customs processing, and enhance hinterland links. The Port of Mombasa achieved 41.1 million tons of cargo throughput in 2024, a 14.1% rise from 35.98m tons in 2023, with container traffic exceeding two million TEUs for the first time (up 23.5%). This improvement has been supported by dry ports, with Mombasa Dry Ports having the highest efficiency rank in Africa. The Port of Mombasa operates three dry ports for handling and storage of containerised cargo and empty containers. They are directly linked to the container terminal in Mombasa by rail and road. Transit cargo grew by 17.4% to 13.4m tons, mainly to Uganda. DP World established the Komatipoort dry port near the border with Mozambique in 2019. According to DP World, it enables customers in South Africa to deliver and receive cargo directly in their country, “meaning less paperwork and faster delivery times”. The facility also supports Maputo’s expansion as a logistics hub under AfCFTA, with revived rail services to Zimbabwe enhancing overall corridor throughput, the company states. The AfDB is a strong proponent of dry ports, stating that effective, integrated intermodal transport logistics systems (such as dry ports) are needed to facilitate regional connectivity, cross-border efficiencies, and international trade. But dry ports are only part of the solution, according to research conducted by F J van Zyl, Leila Goedhals-Gerber, and Joubert van Eeden of Stellenbosch University. They found that African dry ports were affected by weak multimodal integration, heavy reliance on road transport and customs inefficiencies that directly affect throughput and cost recovery. According to the research, African dry ports differ from global models, shaped by a local evolution driven by state-led planning, complex governance structures, capacity constraints and the demands of regional integration. ER