Cresco MD Conrad Hefer discusses the potential of the Maputo Logistics Corridor as a strategic trade artery for Southern Africa, and the challenges to overcome before it reaches its full potential.
What are the most immediate infrastructure constraints currently limiting the full potential of the Maputo Logistics Corridor, and how are they being addressed through public-private partnerships?
The main constraint lies in rail infrastructure, particularly on the South African side of the corridor. To date, neither Transnet nor the Department of Transport has issued a Request for Information (RFI) to address the long-standing issues with the Transnet Freight Rail (TFR) network.
While no formal projects have been launched, private-sector consortiums have been engaging with relevant public entities to propose collaborative solutions. Industry insiders suggest the slow progress and reluctance to involve the private sector may be linked to the corridor being one of Transnet’s more profitable operations.
Due to these rail limitations, road haulage has stepped in to fill the gap. However, this too faces constraints, mainly because of delays in implementing a 24-hour one-stop border post at the Komatipoort/Ressano Garcia crossing.
Given the increased pressure on traditional South African ports like Durban and Richards Bay, how can the Maputo Corridor offer a sustainable alternative for bulk commodity exporters?
The Maputo Corridor provides a sustainable and scalable alternative to Durban and Richards Bay, particularly for bulk-commodity exporters. It eases congestion at South Africa’s traditional ports, diversifies logistics routes, and benefits from ongoing infrastructure investment and regional integration.
While South African ports require massive capital investment to address backlogs, Maputo Port has consistently attracted maintenance and expansion funding in recent years. Once rail constraints are resolved, South Africa’s export capacity through this corridor could grow faster than through other trade routes.
What role does regional cooperation among South Africa, Mozambique, Eswatini, and Zimbabwe play in optimising the Corridor’s long-term performance and competitiveness?
Regional cooperation has been key to improving the efficiency, resilience, and competitiveness of the Maputo Logistics Corridor. One of the biggest barriers to regional trade remains customs delays at border posts, and enhanced cooperation will be essential to overcoming this.
Established in 2013, the Maputo Corridor Joint Operating Centre (JOC) unites Transnet, Mozambique Ports and Railways (CFM), Swaziland Railway, and the Maputo Port Development Company (MPDC). The JOC coordinates operations, safety standards, maintenance, and investment planning across borders.
Further initiatives include:
- Economic Corridor Development & Trade Facilitation between South Africa and Mozambique, which since the 1990s has unlocked over US$5 billion in infrastructure investment across transport, ICT, energy, and port development.
- The Maputo Corridor Logistics Initiative (MCLI), launched in 2004, which aligns regulatory frameworks and drives infrastructure upgrades.
- Grindrod, as part of MPDC, has expanded regional rail networks and introduced an Eswatini multimodal route, improving access for Mpumalanga exporters.
With recent African Development Bank funding and ongoing port expansion, what specific investment opportunities exist for the private sector along the Maputo Corridor?
The African Development Bank’s US$40 million loan to Mozambique Ports and Railways (CFM) and the MPDC’s infrastructure expansion are catalysts unlocking multiple private-sector investment opportunities.
Potential areas include:
- Border-post concessions and intermodal logistics facilities
- Rolling stock and terminal infrastructure
- Digital logistics platforms and tracking technologies
- Manufacturing and industrial clusters within Special Economic Zones (SEZs)
- Rail technology, engineering, and advisory or financing services
With rising freight volumes and corridor modernisation, the Maputo Corridor represents a high-growth investment frontier in Southern African logistics.
From a financial modelling perspective, what are the most critical variables when assessing cross-border infrastructure investments along the corridor?
The key determinant is the revenue-generating potential of each project — whether the infrastructure can sustain repayments on capital investments.
Where demand is insufficient to justify the spend, government support becomes necessary, placing additional strain on national budgets and potentially deterring private investors. Robust demand forecasts and risk-adjusted financial models are therefore critical for project viability.
How can improvements in customs efficiency and the proposed one-stop border post at Lebombo/Ressano Garcia unlock greater trade flows through Maputo, and what are realistic timelines for results?
Customs delays remain one of the most serious bottlenecks along the Maputo Corridor. Implementing a 24-hour one-stop border post at Lebombo/Ressano Garcia could rapidly increase throughput and reduce waiting times — a relatively quick win for trade facilitation.
However, progress depends heavily on regional cooperation between South Africa and Mozambique. Once implemented effectively, these interventions could deliver tangible results within a short timeframe, significantly boosting the corridor’s competitiveness.
The Road Ahead
With its strategic location, maturing partnerships, and expanding infrastructure, the Maputo Logistics Corridor has the potential to become one of Southern Africa’s most efficient trade routes. To realise this, public-private collaboration, cross-border coordination, and targeted investment will be essential.
As Hefer notes, “If South Africa’s rail and customs challenges are addressed collaboratively, the Maputo Corridor could redefine regional logistics — not in decades, but within years.”
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