Mozambique has taken a major step towards improving its transport and logistics sector after signing a 25-year concession agreement for the development and operation of the Dondo Logistics Terminal. The inland dry port, valued at US$117 million (about R2.1 billion), is expected to reduce congestion at the Port of Beira while improving the movement of cargo along one of Southern Africa’s most important trade routes.
The concession agreement follows the awarding of the project to Terminal Logístico de Dondo, S.A., a consortium led by Chinese investors, last year. The consortium is working in partnership with Mozambique’s state-owned railway company, Caminhos de Ferro de Moçambique (CFM), to deliver the project. With the agreement now signed, construction of the logistics terminal is expected to begin, marking the start of an important infrastructure investment for the country.
The Dondo Logistics Terminal will be located about 30 kilometres from the Port of Beira in Sofala Province. Instead of handling all cargo directly at the seaport, the inland terminal will allow containers and other goods to be stored, sorted, consolidated and distributed before they are transported through the port. This will help reduce pressure on the busy port while making cargo handling faster and more efficient.
Speaking during the signing of the agreement, Mozambique’s Minister of Transport and Logistics, João Matlombe, said the terminal is expected to become operational by August or September next year. Once completed, it is expected to play a key role in easing congestion on the Beira Corridor, one of the country’s most strategic transport corridors connecting the port to neighbouring countries.
The Beira Corridor is an important gateway for regional trade, particularly for landlocked countries such as Zimbabwe, Zambia and Malawi. These countries depend on the Port of Beira to import goods and export agricultural products, minerals and other commodities to international markets. Improving cargo movement along the corridor will help lower transport delays and support more reliable supply chains across the region.
The new logistics hub is also expected to improve coordination between road and rail transport. By shifting some logistics activities away from the port, trucks and trains will spend less time waiting to load or unload cargo. This could reduce transport costs, shorten delivery times and improve the overall efficiency of freight operations. Better use of rail transport may also reduce pressure on roads and contribute to safer and more sustainable freight movement.
The project reflects Mozambique’s continued investment in transport infrastructure aimed at strengthening its position as a regional trade and logistics hub. Modern inland terminals are becoming increasingly important as cargo volumes continue to grow, allowing ports to operate more efficiently while expanding their handling capacity without major congestion.
For businesses operating along the Beira Corridor, the Dondo Logistics Terminal is expected to bring significant benefits once operational. Faster cargo processing, improved storage facilities and better connections between road, rail and sea transport will enhance trade competitiveness and support economic growth in Mozambique and the wider Southern African region. As construction begins, the project represents another important milestone in developing efficient transport networks that facilitate regional and international trade.
