Lobito rail corridor, Angola – update

28th June 2024

Lobito rail corridor, Angola – update

Name of the Project
Lobito rail corridor.

Location
The railway line extends across Angola for almost 1 300 km between the Port of Lobito to Luau, in eastern Angola, and connects with the rail network run by the National Railway Society of the Congo, in the Democratic Republic of Congo (DRC) to Kolwezi in the heart of the Copperbelt.

Project Owner/s
A 30-year concession has been awarded to Lobito Atlantic Railway (LAR) consortium comprising Trafigura, Mota-Engil and Vecturis SA.

Project Description
The Lobito rail corridor has great potential to boost the development of sectors along the line, including heavy industry, agriculture and mining, creating new jobs and new opportunities. 

The investment will include 1 555 wagons and 35 locomotives for the Angolan side of the corridor and the investment in training and skills, with dedicated training centres already in place at Huambo and Lobito.

There is the potential to extend the line into Zambia, extending its benefits across the region.

Potential Job Creation
Not stated.

Capital Expenditure
The consortium plans to invest $455-million in Angola and up to $100-million in the DRC.

Planned Start/End Date
Not stated.

Latest Developments
LAR has placed an order for 275 new container wagons from South African company Galison Manufacturing for an undisclosed sum.

The wagons will be delivered in three tranches, with the first wagons due to arrive in Lobito from the fourth quarter. They will be able to carry 10-ft-, 20-ft- and 40-ft-long containers, providing flexibility in terms of the loads to be transported.

They are being manufactured from high-strength steel to increase the durability and reduce the weight of every wagon, consequently allowing for heavier loads to be carried. The manufacturing process involves extensive use of modern fabrication methods, including computerised beam saws and robotic welding cells.

The new wagons are compatible with the existing rolling stock in the Southern African Development Community region. They wagons have been designed with local conditions on the railway in mind to ensure the smooth transport of critical minerals and other materials for domestic and international traffic. 

A financing package, which includes a potential investment by the US International Development Finance Corporation, is under discussion.

Key Contracts, Suppliers and Consultants
Galison Manufacturing (container wagons).

Contact Details for Project Information
Mota-Engil Press Office, Pedro Arrais, tel +351 214 158 576 or email pedro.arrais@mota-engil.pt.
Trafigura Press Office, tel +41 22 592 4528 or email media@trafigura.com.
Vecturis Press Office, Eric Pfeiffer, tel +32 2 626.26.87 or email epe@vecturis.com.