Mozambique has signed a 25-year concession agreement for the development and operation of the Dondo Logistics Terminal, a US$117 million (R2.1 billion) inland dry port that is expected to ease congestion on the Beira Corridor and strengthen regional cargo flows through the Port of Beira.
The project was awarded to Terminal Logístico de Dondo, S.A., a consortium led by Chinese investors, last year, but the signing of the concession agreement now clears the way for construction to begin. The consortium is partnering with Mozambique's state railway operator, Caminhos de Ferro de Moçambique (CFM).
Located about 30km from the Port of Beira in Sofala province, the Dondo Logistics Terminal will serve as an inland logistics hub where cargo can be stored, consolidated and distributed before moving through the port.
Mozambique's Minister of Transport and Logistics, João Matlombe, said the terminal was expected to become operational by August or September next year, helping to ease pressure on the Beira Corridor.
The facility is expected to strengthen logistics links for Mozambique and neighbouring landlocked countries, including Zimbabwe, Zambia and Malawi, which rely on the Beira Corridor for access to international markets.
Once operational, the inland terminal will allow some logistics activities to take place away from the Port of Beira, improving cargo handling efficiency, reducing congestion and supporting more efficient road and rail freight operations.