The Berbera corridor and the economics of bulk mineral exports

For low-unit-value commodities such as gypsum, limestone, aggregate and dimension stone, logistics dominate the cost stack. A deposit 120 km from Berbera on a good road can beat a richer one 400 km out on a poor one.

The corridor upgrades have changed the map. Projects that were marginal on trucking cost five years ago now clear their hurdle rate, provided the operation can guarantee volume and predictable turnaround at the port.

The sensible approach: model the delivered cost to the ship, not the mine gate, from day one, and stress-test it against fuel and road-condition scenarios.