Pan African Mining Logistics Business Plan › Section 7 › Geographic Strategy & Corridor Footprint

7.1 Strategic Logic

PAML’s geographic strategy is built on the principle that, in mining
logistics, geography is destiny. The economic value of a logistics
network is determined not only by the size of its fleet but by the
location of its depots, the density of its corridor coverage, and the
strategic importance of the mining clusters it serves. PAML’s corridor
footprint has been designed to align directly with the most economically
active mining clusters in Southern Africa and to position the Company at
the natural choke-points where corridor traffic concentrates.

Figure 13

7.2 Country-by-Country Strategy

7.2.1 Republic of South Africa (Core Base)

South Africa is PAML’s home market and the foundation of the
Company’s operating base. Core operations span four primary corridors:
(i) the Mpumalanga–Richards Bay coal corridor; (ii) the Northern
Cape–Saldanha iron-ore and manganese corridor; (iii) the
Limpopo–Polokwane chrome and PGM corridor; and (iv) the
Gauteng–KwaZulu-Natal main-line trunk for general commodity movements.
South African operations represent approximately 72% of Year 1 revenue
and approximately 58% of Year 5 revenue, reflecting the sustained
importance of the home market alongside progressive cross-border
expansion.

7.2.2 Republic of Zambia (Copper Corridor Expansion)

Zambia’s Copperbelt represents the single largest cross-border
opportunity. Zambian copper exports of approximately 12.5 million tonnes
per annum (concentrate plus cathode) are forecast to grow to 18.8
million tonnes by 2030, driven by the global energy transition.
Two-thirds of Zambian copper exports move via South African ports
(predominantly Durban and Richards Bay), creating a structural
cross-border haulage opportunity. PAML’s Phase 2 strategy targets a
12–15% market share of the Zambia–RSA corridor by Year 5, supported by
the Kasumbalesa mega-hub investment.

7.2.3 Republic of Botswana (Coal Logistics Integration)

Botswana hosts substantial coal reserves at Morupule and Mmamabula,
with growing export ambitions through both Namibian and Mozambican
ports. PAML’s Botswana strategy focuses on (i) inbound mining-supply
logistics to Botswana operations, (ii) cross-border coal flows from
Botswana into the South African export network, and (iii) progressive
participation in the proposed Trans-Kalahari Railway logistics
ecosystem.

7.2.4 Republic of Namibia (Western Corridor Diversification)

Namibia’s Walvis Bay port represents a strategic alternative export
channel for Botswana coal, copper, and Zambian transit cargoes,
particularly in periods of South African port congestion. The
Trans-Kalahari Corridor and the Trans-Caprivi Corridor connect Walvis
Bay to landlocked SADC mineral producers. PAML will operate dedicated
cross-border services on both corridors, supported by a depot at Walvis
Bay.

7.2.5 Republic of Mozambique (Port Diversification)

Mozambique provides three export channels — Maputo, Beira, and Nacala
— that collectively represent material capacity diversification away
from congested South African ports. Maputo handles approximately 22
million tonnes of South African chrome, magnetite, and coal exports per
annum. Beira serves as the primary port for Zambia–Beira corridor flows.
PAML will operate cross-border services to all three Mozambican ports,
with Maputo as the priority focus for Phase 2.

7.3 Corridor Economics

Each of PAML’s principal corridors has distinctive economic
characteristics. The table below summarises corridor economics at
steady-state utilisation:

Cross-border corridors deliver materially higher gross margins
(24–26%) than domestic corridors (19–24%), reflecting the greater
operational complexity, customs expertise, and capital intensity
required. This margin profile is a key driver of the EBITDA-margin
expansion projected over the Plan period.

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