Lobito - The Lobito Atlantic Railway (LAR) consortium is negotiating an investment of around 500 million dollars to improve the Benguela Railway infrastructures.
Speaking to the Angolan Public Television (TPA), the consortium's operations director, Nicolas Régua, said that the enterprise is mobilising funding from the U.S. International Development Finance Corporation (DFC) and South Africa’s Development Bank of Southern Africa (DBSA) for this purpose.
He said that the documents are being finalised and are expected to be completed next year.
According to him, the investment will be greater in the first three years of the 30-year contract signed with the Angolan government, adding that it will focus on rolling stock, mainly wagons.
The official said that LAR already signed a contract to buy 450 wagons and some of them have already arrived in Lobito and next week the first train will be assembled.
He added that the consortium intends to increase the daily capacity of the trains with up to 50 wagons and invest in line crossings.
Bridges, new stations, maintenance of the railway line and modern signalling are also on the list of investments.
Asked about the cargo already handled since operations began on 25 January this year, he revealed that 40,000 tonnes of miscellaneous cargo have already been sent to the international market and 60,000 tonnes to the domestic market.
Most of this is copper from the Democratic Republic of Congo (DRC) and the sulphur that this country imports for copper production.
Regarding the destination of exports, he pointed to the United States of America (to where a shipment has already been taken) and Asia.
Regarding the influence of President Joe Biden's visit to Angola, he said that LAR has a good relationship with the American DFC.
He said that there will be a lot of talk about the Lobito Corridor, which will also involve agriculture.
To Nicolas Régua, Angolan businesspeople will help to grow the economy along the Lobito Corridor, informing that LAR will be there to help with fast and efficient transport.
Lobito Atlantic Railway (LAR) is a consortium formed by the companies Vecturis, Trafigura and Mota Engil, which will manage the railway and port infrastructures of the Lobito Corridor for a period of 30 years. It also takes over the operation and maintenance of one of the longest and most important railway lines in the African region, as well as the mining terminal at the Port of Lobito.
With a solid commitment to contributing to economic and social development, LAR operates a 1289 km railway line linking the Port of Lobito to the border with the DRC. This route is important for the export and import of goods, facilitated by the Mining Terminal at the Port of Lobito.
TC/CRB/MRA/jmc
