Inland Transit Facility Aims to Slash Transport Times Between Maputo and Johannesburg

A new inland transit facility between South Africa and Mozambique could slash transport times between the Maputo port and the region’s industrial and business hub.

DP World’s new dry port depot in Komatipoort, a town on South Africa’s eastern border with Mozambique, operates as a bonded container facility, allowing shippers to clear customs quicker when they arrive from the Maputo port that’s a 100km drive away. That way, a container can reach the Gauteng province with South Africa’s financial hub, Johannesburg, and capital, Pretoria, within a day of it arriving in Maputo, the Dubai-based port operator said.

The port of Durban handles 69 percent of South Africa’s maritime imports. However it has struggled to meet demand and cut transit times, with inbound containers spending an average of three days in the port, and those for export almost double that time.

South Africa plans to invest R100 billion (US$7.4 billion) over the next decade to increase Durban’s container handling capacity to more than 11 million units a year from 2.9 million units.

DP World’s Maputo container terminal is much smaller, with expansion underway to increase capacity to one million units a year. The company has spent US$100 million expanding capacity over the last five years, and will invest another US$130 million.

The company also plans to expand the Komatipoort dry port depot and build rail infrastructure that will allow it to transport containers by train from Maputo into South Africa within a year or two. That would reduce risks of shipments getting snared in congestion at the border, where queues of trucks waiting to cross can stretch for more than 20km. The expansion at the Komatipoort facility will cost R185 million (US$13.6 million), DP World said.

Source: Bloomberg