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Lobito Port Opens New Trade Corridor

Trafigura, a multinational commodities trader, has announced a significant milestone for Angola, as the country received its first vessel at the minerals terminal in the Port of Lobito. This development is anticipated to revolutionize bimodal logistics serving the Copperbelt region in Zambia and the Democratic Republic of the Congo (DRC).

On July 12, the MV Lindsaylou, a bulk cargo vessel loaded with 40,500 tonnes of sulphur, docked at the terminal, marking the commencement of port operations for the Lobito Atlantic Railway (LAR). LAR is the concession holder responsible for the operation, management, and maintenance of the pit-to-port rail link.

The vessel embarked on its journey from Qatar and arrived in Lobito after a month-long voyage. The unloading and storage of the cargo are being executed entirely by local labor and equipment sourced from Angola.

All operations adhere to stringent environmental and safety procedures, utilizing two automatic hoppers designed and manufactured in Angola. Initially, the cargo is stored at the mineral terminal in bags before being transported on LAR international cargo trains to the DRC. This transportation will support refined copper production by mining companies in the Katanga area.

Francisco Franca, president of LAR’s Board of Directors, emphasized that the arrival of the Lindsaylou signifies the final step in integrating all logistics necessary to operationalize and develop the railway line to its full potential.

Franca reiterated LAR’s commitment to enhancing the most important logistics corridor in the region and increasing the volume of railway and port operations to meet the strategic objectives of the Angolan government in this vital corridor of regional economic development.

The launch of LAR’s port operations follows extensive rehabilitation work initiated after the start of railway operations in January of this year. These efforts have already enabled the circulation of 1,800 trains, including both passenger and freight trains, on national and international routes.

Currently, two international freight trains travel weekly from the DRC to the Port of Lobito, along with around 50 domestic freight trains each month. Future plans aim to have six international freight trains in transit daily after the planned investments are completed.

The project to refurbish the railway line represents a substantial investment exceeding $800 million over the lifetime of the concession. This investment will facilitate the renovation of railway sections and associated infrastructure, alongside the acquisition of wagons and locomotives. Discussions are ongoing regarding a financing package, which includes potential investment from the US International Development Finance Corporation.

LAR has already initiated significant investments, purchasing rolling stock and commencing maintenance work on the existing railway line. The consortium currently employs over 650 workers, focusing on maintenance and improvement operations along the line from Lobito to Luau at the DRC border and the mineral terminal. This workforce is crucial for ensuring the efficiency and reliability of the logistics corridor, which is expected to play a pivotal role in regional economic development.

The docking of the MV Lindsaylou at the Port of Lobito marks a transformative moment for Angola’s logistics and transportation sector.

The Lobito Atlantic Railway’s operations are set to significantly enhance the transportation of minerals from the Copperbelt region, fostering economic growth and development across Angola, Zambia, and the DRC. With substantial investments and strategic planning, this project is poised to become a cornerstone of regional economic integration and development.

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