Angola's Railway Revival: A Critical Look at the Lobito Atlantic Railway Project
The Lobito Atlantic Railway (LAR) is poised to secure a $533 million loan from the U.S. International Development Finance Corporation (DFC) by the end of this year. This funding is pivotal for upgrading 1,300 kilometers of railway infrastructure in Angola, facilitating the transport of minerals essential for the global shift to cleaner energy.
Consortium and Concession
The LAR consortium, comprising Trafigura, Mota-Engil, and Vecturis SA, was granted a 30-year concession by Angola in 2022. This concession allows the consortium to operate the railway, providing a swift export route for copper and cobalt from the Democratic Republic of Congo (DRC) via the Lobito port.
Political Shifts and Commercial Focus
Despite political changes, such as President Donald Trump's reversal of Biden-era climate and energy policies, the consortium's CEO, Nicholas Fournier, remains optimistic. He emphasizes that the loan deal is purely commercial, not geopolitical. Fournier expects the deal to be finalized by year-end, with legal teams currently finalizing details.
Investment and Future Capacity
The consortium has already committed $555 million for upgrade work. Fournier anticipates:
- Doubling railway capacity by 2026
- Transporting 40,000 tons of cargo monthly in each direction
- Reaching an annual capacity of 1.5 million tons by the end of the decade
Current Operations
Currently, the railway primarily transports:
- Copper and cobalt to the Lobito port for export
- Sulphur to DRC mines
- Agricultural commodities and industrial products from the port