Project’s Name: Dondo Dry Port

Project’s Location: Dondo District

Type of Investment: Public Private Partnership

Project Description: Dondo Dry is Port situated at inland from the Port of Beira, which is the second largest port in Mozambique and is located about 1,200 kms north of Maputo, midway along the Mozambique coast at the mouth of the Pungue River and is 20 km from the open sea.

The Dondo Dry Port is designed to modernize and improve efficiency at Beira Port. As imports and exports increase, the congestion and transit times for cargo requires additional, improved logistics to meet demand. The congestion leads to security and social problems which has a serious negative impact on the population. In addition, trucks are often overloaded in order to increase productivity and profits, but this leads to increased infrastructural maintenance cost.

Project Objective: The overarching goal of the Dondo Dry Port project is to boost the logistical performance of the Beira Corridor in Mozambique in order to create a hub for import/export growth in Mozambique and the greater SADC region.

The Dondo dry port will alleviate much of this problem with congestion and allow for authorities to improve their ability to regulate truck weights and mandatory standards.

This project will increase the effectiveness of the transport chain, to develop the hinterland, provide cheaper extra stacking space, strengthen multimodal solutions, help minimize traffic bottlenecks and create employment.


– Local population, private sector, Dondo and Beira Municipalities;

– However approximately 80% of the labor force works in agriculture, 6% in industry and 13% in services making the available work force for dry port construction particularly limited. Current estimates place nationwide adult literacy levels at under 56%, with most of the literate Mozambicans living in urban centers. In Mozambique, technically or professionally qualified labor force remains small, and highly qualified professionals have been educated abroad and have often used to receive international salaries.

Products and Market:

– Internal Market;
– SADC region (Zimbabwe, Botswana, Malawi, Zambia and DRC).

Public Infrastructures: 

– Container Yard (CY)

– Container Freight Station(CFS

– Access roads, Railway link or sidings, Inland Water Transport (IWT) berths

– Break-bulk receiving and storage area

– Bulk receiving and storage area

– Administrative office with space for banks, forwarders and cargo agents

– Customs office

– Container light repair facility

– Secure fence and entry point

– Cargo handling equipment (RTGs, RMGs, reach stackers, empty lifters, forklifts, container chassis, prime movers etc.)

Total Investment: 

  • USD 61.3 Million

Economic & Financial Indicators (Private Investment): 

The revenues for the developer company are:

– Concession fee for the intermodal terminal and the container freight station, to obtain a profitability of 28%:

  • USD 7,301,397/year

– Income from rental of logistics buildings: USD 5/m2 monthly. Initially 10,000m2 of building facilities will be rented, increasing 15,000m2 yearly up to 125,000m2;

– Income by built-up plot rental of the service center:

  • USD 0.065/m2 monthly
  • In 2015, the plot of the first phase will be rented and the plot of the second phase in 2019.

The operating results for the Developer Company of intermodal terminal and CFS are:

– The Internal Rate of Return (IRR) previously agreed is 28%, which can be considered suitable for a business of this kind in Mozambique (taking into account the country risk).

From this IRR, the fee to be paid by the operator is calculated

– The resulting Net Present Value (NPV), after taxes is $ 27,608,912 discounted at a WACC discount rate of: 17.9%.

– A financing peak of -$29,234,781 will take place in the year 2014

– The investment will be recovered in the year 2021

– The concession fee obtained is USD 7,301,397 yearly

The operating results for the Developer Company of the inland terminal are:

– The Internal Rate of Return (IRR) previously fixed is 18.84%.

– The resulting Net Present Value (NPV), after tax is $ 3,280,000 discounted at a WACC discount rate of: 17.9%.

– A financing peak of -$71,030,806 will take place in the year 2014

– The investment will be recovered in the year 2022