The facility is to be known as the Enditrade Logistics Terminal (ELT). Enditrade, a logistics group, is a 100% owned subsidiary of the Angolan state-owned company Endiama.

When developed, ELT will comprise a new 3 867 square metre office development and a 15 000 square metre bonded dry port facility. It will be developed on existing, zoned, Enditrade-owned land at Grafanil, Luanda.

"This location has been chosen for its excellent access to major road systems and its proximity to the new Luanda airport currently under development," Lonrho said.

The port comes amid growing concerns over severe congestion at all major Angolan ports that often causes delays of up to three months to clear goods, according to Lonrho.

A new Angolan company has been established for the project, ELT Luanda, which will be owned 51% by Lonrho, 30% by Enditrade and 19% by Project Net.

Following repayment of all commercial loans for the project, dividends will be split 40% to Lonrho, 35% to Enditrade and 25% to Project Net.

Enditrade will lease the site to ELT Luanda for 20 years, on a peppercorn rent, and will co-manage the operation with Lonrho.

Project Net, an Angolan project development company, will project manage the development of the facility and arrange local commercial funding for the development. Lonrho will provide funds for the balance of the project cost not available from the local market.

Enditrade has obtained planning and customs authority for the development of the project, which is scheduled to be completed and operational within nine months of the development commencing.