The chairman of Lobito Atlantic Railway, the concessionaire for the Lobito Corridor, said on Thursday that the financing contracts to develop the infrastructure that crosses Angola would be signed in the “next few months”.
Francisco Franca was speaking in Luanda at the meeting “ESG in Angola – Challenges and opportunities, organised by the Portugal – Angola Chamber of Commerce and Industry (CCIPA), where he pointed out that, to date, the investments have been made by the shareholders.
The Lobito Atlantic Railway consortium is made up of Trafigura, Mota-Engil and Vecturis, who were awarded the concession in 2022 to operate and manage the so-called Lobito Corridor for 30 years, which includes the Lobito mining terminal and the Benguela railway, which crosses Angola over 1,300 kilometres to the Democratic Republic of Congo (DRCongo).
Loans totalling $748 million are at stake, of which $553 million will come from the US entity DFC (International Development Finance Corporation) and $195 million from the Development Bank of Southern Africa (DBSA). In addition, the shareholders, who represent around 20% of the project’s costs, have invested $187 million.
Francisco Franca pointed out that the Lobito Corridor has existed for 100 years and has been an engine of growth for Angola, adding that he had no doubt that the project would be a success and emphasising the efficiency that the concession has brought to the infrastructure.
“We only started receiving rolling stock at the end of last year. We started the operation with the same resources (that already existed), improving the efficiency of management and resources,” he said, adding that 4,200 trains ran on the Lobito corridor last year, most of them passenger trains (3,400).
The number is set to increase this year and next with the arrival of more rolling stock that will increase freight volumes.
Essentially, this strategic transport route links the mineral-rich regions of the DR Congo (such as Katanga province) to the Atlantic Ocean and transports minerals, agricultural products, and foodstuffs.
“We’re investing in rolling stock, and we’re going to increase freight volumes, so it’s important to close the financing to make these investments, but they’re being mad,e and it’s not because it’s sooner or later that the shareholders won’t invest in the project,” assured the chairman of LAR’s Board of Directors.
Lusa
