This week, it was revealed that the R10.5 billion railway project connecting the Lobito port in Angola with the Democratic Republic of the Congo and Zambia will be managed by a consortium led by international commodities trader Trafigura.
The presidents of Angola, Zambia, and the DRC convened on Tuesday in Lobito to make the announcement that the rail infrastructure for the 1 300 km corridor will be operated, managed, and maintained for the next 30 years by the Lobito Atlantic Railway.
It is a joint venture between independent train operator Vecturis SA, worldwide construction and infrastructure management company Mota-Engil, and Trafigura.
According to the statement, the railway is anticipated to be the quickest and shortest route to a port from the important mining region of Kolwezi in the DRC, where raw material exports of copper, cobalt, and other metals are expanding quickly. Additionally, it will encompass Zambia’s copper belt. Additionally, Lobito will provide the quickest export and import route for the area to Europe and the Americas.
The Benguela Railway’s second goal is to provide a faster and safer route for individuals traveling inside of Angola. This will be connected to a port in Lobito that is not congested, offering an alternative to east African ports that are congested and have lengthy wait times.
In a statement released by Trafigura, Angolan President Joo Lourenço expressed optimism that expanding the corridor to Zambia will increase intra-African commerce.
“The Lobito Corridor, which links Angola to the Democratic Republic of the Congo and whose concession we have given today provides for its extension to Zambia, will certainly boost intra-African exports which currently account for only 14% of the total exports for the rest of the world.
“Figures like this show us the importance and necessity of putting our infrastructure at the service of the economic and social development of our countries and our continent. And we are doing so with vision, purpose and clearly defined objectives,” he said.
The Lobito Atlantic Railway’s Jeremy Weir stated that their aim was to “build the most significant logistics corridor in sub-Saharan Africa.”
The heads of state for the Great Lakes Region agreed that restoring the Lobito Corridor would connect southern Africa and central Africa and improve access to the east African region when they signed the Dar-es-Salaam Declaration on November 20, 2004, pledging their commitment to working together to promote economic growth.
However, during the 1970s, fighting in Angola between the National Union for the Total Independence of Angola (UNITA), led by the late Jonas Savimbi, and the ruling People’s Movement for the Liberation of Angola (MPLA), had a significant impact on the Lobito Corridor. Peace treaties served as one of the main impetus for its reconstruction.
In Angola, the Lobito Atlantic Railway will run 30 locomotives and at least 1,555 carriages. All of these would cost an estimated R8.5 billion, and a further R1.8 billion would be needed if the DRC side were taken into account.
According to the Trafigura announcement, the consortium “plans to invest up to $100 million in the DRC and $455 million in Angola overall.” The amount that will be required after Zambia is included was not immediately disclosed.