Benguela – The concession of the Lobito Corridor to the international consortium Lobito Atlantic Railway (LAR) was a historic milestone in 2023 in Benguela province, where expectations are growing around the relaunch of this mega railway project that will connect the Atlantic to the Indian Ocean.
By José Honório, ANGOP journalist
Ten years after the resumption of the Benguela Railway (CFB) train from Lobito to Luau, on the border with the Democratic Republic of Congo (DRC), the prospect of revitalizing this gigantic 1,344-kilometer corridor puts the province in the spotlight.
On 4 July this year, the Angolan Government took a step forward by signing the contract for the transfer of the concession of rail services and the logistics to support the project to LAR, a consortium formed by Trafigura (49.5%), Mota-Engil (49.5%) and Vecturis S.A. (1%).
Under the watchful eye of the Presidents of Angola, João Lourenço; from Zambia, Hakainde Hichilema; and DRC, Félix Tshisekedi, the transfer contract was initialed, in the city of Lobito, by the Angolan Minister of Transport, Ricardo d'Abreu, and representatives of Trafigura, Mota-Engil, Vecturis S.A.
Winner of the international tender for the operation, operation and maintenance of the Lobito railway corridor, the concessionaire assumes the transport of goods, with a greater predominance for ores and fuels, between Lobito and Luau, with the creation of an intermodal freight transport solution for the DRC and Zambia.
Investing €455 million in Angola and another €100 million in the DRC to improve the infrastructure of the Lobito Corridor in terms of capacity and safety, as well as buying 35 locomotives and 1,500 carriages is the commitment made by the LAR consortium, under the concession contract, which can be extended to 50 years.
The transfer contract was signed, in the city of Lobito, by the Angolan Minister of Transport, Ricardo d'Abreu, and by representatives of Trafigura, Mota-Engil, Vecturis S.A. and witnessed by Presidents of Angola, João Lourenço; from Zambia, Hakainde Hichilema; and DRC, Félix Tshisekedi.
Winner of the international tender for the operation, operation and maintenance of the Lobito railway corridor, the concessionaire assumes the transport of goods, with a greater predominance for ores and fuels, between Lobito and Luau, with the creation of an intermodal freight transport solution for the DRC and Zambia.
Investing 455 million euros in Angola, and another 100 million in the DRC, to improve the infrastructure of the Lobito Corridor in terms of capacity and safety, as well as purchasing 35 locomotives and 1,500 carriages is the commitment made by the LAR consortium, under the concession contract, which can be extended to 50 years.
Awakening the 'Sleeping Giant'
To achieve the expected results, Lobito Atlantic Railway initialled, one month after the concession was formalized, more precisely on August 16, 2023, a memorandum of understanding with the Canadian company Ivanhoe Mines, which operates the Kamoa-Kakula copper mines in the DRC.
Awaken the “sleeping giant”
To achieve the expected results, the Lobito Atlantic Railway initialed, one month after the concession was formalized, more precisely on August 16, 2023, a memorandum of understanding with the Canadian company Ivanhoe Mines, which explores the Kamoa copper mines. Kakula, in the DRC.
The commercial agreement aims to ensure the transport of 10 thousand tons of copper concentrate, in the last quarter of 2023, from the DRC to the Port of Lobito, from where they will be exported to the international market.
The big advantage is that the Canadians at Ivanhoe Mines now see the round-trip time through the Lobito Corridor reduced to 20 days.
Previously, they traveled up to 50 days by road from Kamoa-Kakula to ports in Durban (South Africa), Walvis Bay (Namibia), Beira (Mozambique) and Dar es Salaam (Tanzania).
This is where the important strategic value of the Lobito Corridor lies, not only for Angola but for the whole of Southern Africa, as it constitutes the most economical export axis for ores from the exploration of the Copperbelt region (DRC and Zambia), for the market international - Europe, America and Asia, in a descending direction (Luau/Lobito).
In the upward direction – Lobito/Luau – it is a route for the transport of goods, such as refined petroleum derivatives (diesel and gasoline), with a view to meeting import needs for consumption in Zambia and the DRC, in this sub-region of the Community Southern African Development Council (SADC).
It is true to say that “yesterday as today”, the weight of the Lobito Corridor goes beyond the borders of Angola, as, through the connection to Zambia, it is possible to reach the city of Beira, in Mozambique, and Dar es Salaam, in Tanzania, next to the Indian Ocean, facilitating commercial exchanges.
Among the country's railway lines, the main one is the CFB, which is also indirectly connected to the South African railway system, forming part of a transcontinental network.
The trade agreement aims to ensure the transport of 10 thousand tons of copper concentrate, in the last quarter of 2023, from the DRC to the Port of Lobito, from where they will be exported to the international market.
The big advantage is that the Canadians at Ivanhoe Mines now see their round-trip travel time through the Lobito Corridor reduced to 20 days.
Previously, they traveled up to 50 days by road from Kamoa-Kakula to ports in Durban (South Africa), Walvis Bay (Namibia), Beira (Mozambique) and Dar es Salaam (Tanzania).
Therein lies the important strategic value of the Lobito Corridor not only for Angola but for the whole of Southern Africa, as it is the most economical export axis for minerals from the exploration of the Copperbelt region (DRC and Zambia), to the international market - Europe, America and Asia, in the downward direction (Luau/Lobito).
In the upward direction – Lobito/Luau – it is a route for the transport of goods, such as refined petroleum products (diesel and gasoline), in order to meet the needs of imports for consumption, in Zambia, and in the DRC, in this sub-region of the Southern African Development Community (SADC).
Tripartite partnership
Another significant event in 2023 was the creation of the Agency for the Facilitation of Transit Transport of the Lobito Corridor (AFTTCL), by the Tripartite Agreement between Angola, DRC and Zambia, signed on 27 January, to boost the circulation of goods, mainly minerals, and promote the mobility of citizens.
As countries located in the region, that is, without access to the sea, this partnership will allow Zambia and the DRC to transport their goods, especially minerals from the Copperbelt region, using the logistics and transport infrastructures of the South Africa Corridor. Lobito, such as Porto do Lobito and CFB.
The Committee of Transport Ministers of the Lobito Corridor Transit Facilitation Agency met, for the first time, on December 16, also in the province of Benguela.
Among the issues discussed was financing from the United States of America and the European Union to support the development of infrastructure in the Lobito Corridor, as well as road and telecommunications projects.
In the sights of major investors
Due to its important role as a lever for the development of Southern Africa, the Lobito Corridor aroused great interest from influential countries, international financial institutions and investors inside and outside the continent, such as the United States, the European Union, the African Bank of Development (ADB) and the Africa Finance Corporation (AFC).
An example of this is the investment of one billion dollars approved by the United States of America, within the framework of President Biden's Partnership for Global Infrastructure and Investment in (PIG).
The investment project in the Lobito Corridor, under the terms of the PGI, was approved at the last G7 summit held, in May 2023, in the Japanese city of Hiroshima.
In a first phase, the US is supporting the development of the Lobito Corridor with an initial investment in rail expansion, which could become the main rail transport infrastructure connecting the DRC and Zambia to global markets through Angola.
The project to extend the Lobito Corridor railway line was selected among 40 European and North American investment projects, with a global value of around one billion dollars, in transport infrastructure.
Also in 2023, Porto do Lobito, one of the infrastructures that make up the Lobito Corridor, became Porto Senhorio, after the signing of the concession contract for the multipurpose terminal (general and containerized cargo) with Africa Global Logistics.
Now, the Port of Lobito will no longer operate as an operator for handling container loading and unloading, with this mission falling to the private sector, which will assume the management of its main terminals, as established in the Lobito Corridor concession program.
With the concession to operate the multipurpose terminal for 20 years in favor of África Global Logistics, it is expected that the Port of Lobito will have professional management governed by international practices in the sector, capable of transforming it into one of the best and most efficient ports in the world. Southern Africa.
Other achievements of the year
Also, this year, Benguela gained an Administrative Complex for the Provincial Government of Benguela, where several Provincial Offices were transferred, including those for Education, Social Action, Family and Gender Equality and the National Children's Institute (INAC).
Composed of nine blocks, five of which have been completed in the first phase, the new structure also houses the Provincial Offices for the Environment, Waste Management and Community Services, Former Combatants and Veterans of the Country, Records, Administrative Modernization and Transport, Traffic and Urban Mobility, Culture, Youth Tourism and Sports and Health.
In the industrial domain, the sector registered, throughout the year, an increase of 51 companies, increasing the number of industrial units to 846, of which 465 in the food sector, 312 light and 69 in heavy industry, thus consolidating Benguela's position as second largest industrial park in the country, after Luanda.
The private business group Adérito Areias announced the start-up, scheduled for March 2024, of the tomato concentrate factory in the Dombe Grande commune, Baía Farta municipality, with a processing capacity of 150 tons/day.
It is a manufacturing unit, completed nine years ago, which aims to transform tomatoes into paste or pulp, and is part of the Dombe Grande Agro-Industrial Complex, as well as a cold store and a can factory to be used. such as packaging.
Another highlight of 2023 has to do with the opening of the first regional branch of the Credit Guarantee Fund (FGC), in the municipality of Lobito, which was created to facilitate access to credit for micro, small and medium-sized companies.
The credit facility is extended to farmers, family members and cooperatives in the provinces of Benguela, Cuanza Sul, Huambo and Bié.
Oscillating production sector
Benguela closed the year with a production (still provisional) of 53 thousand and 18 tons of fish of various species captured, until September 2023, 5,221 tons more compared to the same period in 2022.
The salt industry evolved in the opposite direction, with the national leader province in this sector producing 102 thousand and 696 tons, from January to September this year, 34 thousand and 180 tons less than in the same period of 2022.
Evolution of the social sector
The year 2023 witnessed the presentation of the Benguela Provincial Development Plan for 2024-2027, which includes a portfolio of 707 local initiative projects, 164 of which are ongoing, 538 new and five paralyzed, in a budget above 285 billion kwanzas.
The aforementioned plan, presented by the provincial governor of Benguela, Luís Manuel da Fonseca Nunes, to the local business class, foresees, among others, the construction, from 2024, of over 231 new primary and secondary schools of seven, 12, 20 and 24 rooms, as part of local initiative projects.
In the education sector, Benguela recorded an increase in access to basic education, with the construction and rehabilitation of new teaching units, with particular emphasis on the Instituto Politécnico BG 0030 “António Satito”, with 21 classrooms.
These units will serve, in two shifts, from 2024, 1,680 secondary school students, in the commune of Biópio, municipality of Catumbela.
Also, this year, the Program for Construction of Classrooms in Existing Schools, initiated by the Provincial Government, completed 21 permanent classrooms in two primary schools in Chapas, on the outskirts of Benguela, benefiting 1,600 students who now have better conditions of learning.
The continuity of the Integrated Infrastructure Works Program for the coastal municipalities of the province of Benguela, with a focus on improving communication routes, facilitating not only road traffic, but also promoting integration and access to essential services, was another highlight of the year.
The Government's announcement to build and equip around 136 health units was also echoed, with emphasis on two regional hospitals - one in the municipality of Cubal, to serve the southern region of the province of Benguela, health posts and centers to bring services closer to health among populations.
Seeking to increase the electrification rate to 90 percent in the province of Benguela, the authorities announced, this year, the reinforcement of the production of thermal and hybrid plants, including energy distribution networks in municipal, communal and neighborhood headquarters.
In the area of water supply, the renewed commitment of the authorities to see the distribution of drinking water to the coastal cities of the province of Benguela, in 2024, brought encouragement to the inhabitants, through the restoration of the capacity of the Water Treatment Station (ETA) from Luhongo.
With the capacity to pump 1.5 cubic meters per second, the Luhongo ETA only has 0.5 m3/second available and, therefore, the Government plans to recover the nominal capacity of the installed system.
This action should be supported by the Integrated Coastal Emergency Works Program, budgeted at 415 million euros, thus making it possible to mitigate the current deficit in water supply.
After Chongoroi, Caimbambo and Cubal, with 121,853 households receiving around nine billion kwanzas, the Social Protection Strengthening Program (Kwenda) continued this year to the municipality of Ganda.
In this location, close to 51 thousand disadvantaged families began to be registered to be able to benefit, briefly, from monetary social transfers, equivalent to 66 thousand kwanzas every six months for each household.
Still in the social domain, the province registered the entry into operation of social passes for public transport (GIRAMAIS), issued by the National Integrated Ticketing Company (ENBI) in favor of students from six primary schools, I and II cycles, located in municipality of Benguela.
The reopening of the operating room at the Maternity Hospital of the General Hospital of Benguela and the emergency department at the General Hospital of the municipality of Lobito, with new facilities to improve care for the population, was also a notable event during the year.
The campaign for free surgeries was also echoed, within the scope of the 'Muenho' project, developed since 2010 by the association Kimbo Liombembwa – Aldeia da Paz para a Criança”, during which eight doctors from Germany operated on 37 patients, most of them children, to cleft lip and palate, at the General Hospital of Benguela (HGB).
Still in the social domain, 2023 highlights the launch of two clinical vehicles from the Tata Uhayele Project, equipped with pediatrics, general clinic, gynecology-obstetrics and ophthalmology offices, a pharmacy and a laboratory, which brought medical assistance to the villagers of the remote village of Calenguer, in the commune of Wiyangombe, municipality of Caimbambo, province of Benguela.
An initiative of the Ngana Zenza Foundation for Community Development - FDC, under the aegis of the First Lady of the Republic, Ana Dias Lourenço, the Tata Uhayele Project aims to provide primary health care to vulnerable communities along the Benguela Railway (CFB), in partnership with the Ministry of Transport.
Sports environment
In the environment sector, the signing of a cooperation protocol for the implementation of four eco-points - two in the city of Benguela and an equal number in Lobito - for the recycling and reuse of solid waste, in the province of Benguela, by the companies Refriango, Coca-Cola and NGOs Guardians of the Coast Muangolê and For Afrika, was highlighted.
Another milestone was the realization, for the first time, in the province of Benguela, of an itinerant exhibition on the travels of the Hungarian explorer László Magyar (1818-1864) to the Bié Plateau, in pre-colonial times, in an initiative of the Hungarian Embassy in Angola.
In terms of sports, Benguela once again focused the attention of basketball fans by hosting, on November 11, 2023, the dispute of the 'Vlademiro Romero' Super Cup, won by Petro de Luanda. by beating Interclube, by 93-87. JH/IZ/DOJ
