Mozambique Approves CFM Project to Develop Major New Logistics Terminal in Dondo

Mozambique Approves CFM Project to Develop Major New Logistics Terminal in Dondo

Mozambique Greenlights CFM-Led Dondo Logistics Terminal to Boost Beira Corridor Capacity

Mozambique’s government has approved a plan for Caminhos de Ferro de Moçambique (CFM), the national railway operator, to lead the development of a major logistics terminal in Dondo, aimed at easing mounting pressure on the busy Port of Beira.

The project will initially cover 70 hectares, with space reserved for future expansion as regional demand grows.

The decision, outlined in a recently issued government resolution, authorizes CFM to take on the project through a direct award.

A dedicated negotiation team will now prepare the concession contract for the design, construction, operation, and maintenance of the new terminal, located in Sofala province in central Mozambique.

Beira Port: A Critical Regional Gateway

According to the Ministry of Transport and Logistics, the Port of Beira has become one of the region’s most important logistics hubs.

It serves several landlocked countries — including Zimbabwe, Zambia, Malawi, and the Democratic Republic of Congo — providing a vital route for fuel, agricultural products, minerals, and other essential goods.

However, the port’s infrastructure is struggling to handle growing volumes. Storage facilities and access roads are frequently congested, and long queues of trucks at entry and exit points regularly disrupt operations, raise transport costs, and compromise road safety along the corridor.

Dondo Logistics Terminal: A Strategic Solution

To address these challenges, the government has mandated CFM to spearhead the Dondo Logistics Terminal, a dry port intended to relieve pressure on Beira’s waterfront by offering additional space for:

Cargo handling

Storage

Customs clearance

Value-added logistics services

By shifting part of the logistics flow inland, the new terminal is expected to reduce congestion, accelerate cargo movement, and improve the overall efficiency of the Beira Corridor.

Why CFM Will Lead the Project

The government highlighted CFM’s extensive experience in rail and logistics infrastructure, as well as its technical and financial capacity, as key reasons for entrusting the company with the project. The plan also allows CFM to partner with private-sector entities experienced in designing and managing dry ports.

The concession will be implemented through a consortium comprising:

CFM

MPDC (Maputo Port Development Company)

Sofala Business Council

Municipality of Dondo

This partnership aims to ensure the terminal aligns with regional logistics needs and supports Mozambique’s long-term transport strategy.

Part of a Wider National Logistics Vision

The Dondo project forms part of Mozambique’s broader effort to transform its logistics corridors — including Beira, Maputo, and Nacala — into competitive, revenue-generating transport routes that meet international standards and attract increased cargo volumes and investment.

Under the government resolution, Transport and Logistics Minister João Matlombe has 90 days to present the finalized concession contract and accompanying decree for approval.

A Boost for Southern Africa’s Supply Chains

Once operational, the Dondo Logistics Terminal is expected to deliver significant regional benefits by:

Reducing congestion at the Port of Beira

Cutting transport delays

Improving cargo flow and supply chain reliability

Strengthening trade links across Southern Africa

For the countries dependent on the Beira Corridor, the new terminal represents a major step toward building a more efficient, resilient, and competitive regional logistics network.