Bullish outlook for the sector

Project cargo operators across southern Africa are reporting growing optimism as investment in energy, mining and infrastructure increases. From major LNG developments in Mozambique and Namibia’s rapidly expanding oil and gas sector to new mining projects in Zambia, Zimbabwe, Botswana and the Democratic Republic of Congo, industry experts say the outlook for project cargo over the next two years is among the strongest seen in recent years. “Project cargo is definitely on the up,” said logistics specialist Kevin Melnick. “It is a very buoyant market. This isn’t something we’re seeing in just one country or on one continent. Demand for large-scale projects is increasing globally and Africa is very much part of that growth.” Energy remains one of the biggest drivers. Namibia’s offshore oil discoveries, the anticipated restart of major LNG developments in northern Mozambique and continued investment in renewable energy projects are creating sustained demand for heavy-lift, breakbulk and oversized cargo transport. Mining is providing another significant boost. With Zambia and the DRC on track to increase mining output significantly over the next few years, a healthy pipeline of projects requiring specialised logistics planning and execution is coming together. Athol Emerton, managing director of LBH Mozambique, believes the sector is entering a sustained growth phase. “As infrastructure improves and delayed projects resume over the next two years, demand for breakbulk and project cargo logistics will keep increasing,” he told Freight News. “Beyond what’s already under way, the LNG restart in northern Mozambique – Area 1, Rovuma and Coral – will be the single biggest driver of project cargo demand in the region over the coming years.” He said major transport corridor developments, including the Lobito and revitalised Nacala corridors, together with West African iron ore and rare earth projects, would continue generating significant project cargo volumes. “The three industrial sectors that will determine how quickly Africa develops are energy, mining and infrastructure,” said Emerton. “But without infrastructure development, the first two will remain in the ground.” While demand continues to strengthen, the industry still faces significant operational challenges. Unlike many other regions, Africa continues to contend with fragmented customs systems, differing regulatory requirements and inconsistent border procedures that can delay high-value project cargo movements. “There is still far too much red tape,” said Melnick. “We don’t have a harmonised customs environment across the continent. Duties, taxes and customs procedures differ from country to country, so cargo is still held up at borders.” He said successful project execution continued to depend on working with experienced local partners who understand country-specific regulations and can navigate often complex approval processes. Infrastructure constraints also remain a concern, with ageing roads, limited rail capacity, bridge restrictions and port congestion continuing to affect route planning for oversized cargo. Global geopolitical tensions are adding another layer of complexity. Lv