Africa-Press – Angola. The consortium formed by the companies Vecturis, Trafigura and Mota Engil has the technical conditions created to start operating, in December this year, in the management, operation and maintenance of rail transport of goods and logistics of the Lobito Corridor.
The Lobito Corridor concession contract, for a period of 30 years, between the Ministry of Transport and the consortium, was signed on Friday in Luanda.
The Minister of Transport, Ricardo de Abreu, considered the act a relevant milestone for the development and optimization of the sector.
According to the national director of the Economics of Concessions, Eugénio Fernandes, for the start of operations, it is still necessary to assemble the teams that will work permanently in Lobito.
“The current state of the Lobito Corridor remains operational and, with the entry of the consortium, what will happen is that this partnership will provide more dynamics, increased efficiency, dynamization and technological modernization of the existing infrastructure”, he said.
He indicated that, of the US$3.2 billion employed by the State, around US$1.9 billion were invested in increasing the infrastructure and expansion of the Port of Lobito, US$1.2 billion for the construction of terminals and the remaining in the construction of logistics centers, to “create more capacity” for the Benguela Railway (CFB).
With the execution of the contract, the State raised US$100 million that will be used as its own resources for activities in the sector’s portfolio, with the exception of the 40 percent of the amount deposited in the Single Treasury Account (CUT).
The concession contract can be extended for up to 50 years, if the consortium chooses to build the Luacano (Moxico) and Jimbe (Zambia) railway branch, with a total length of 259 kilometres, valued at US$3.6 million per kilometre.
Last week, interested parties met to discuss some details of the State’s interest safeguard contract, to ensure the achievement of the intended objectives.
Invested capital
In turn, the representative of the consortium, Alexandre Canas, informed that the company has already invested around US$550 million, of which around US$450 million were spent on the purchase of new locomotives.
With the logo “Lobito Atlantic Railway”, the consortium plans, over the 30 years, to increase the daily frequency to 50 trains and guarantee 1,600 direct jobs, with an initial annual collection of three million in the first ten years.
For the new managers of the Lobito Corridor, the activity will unlock the region rich in energy transition minerals, improve trade relations in Central Africa and is an opportunity to accelerate the economic development of the provinces of Benguela, Huambo, Bié and Moxico.
The contract for the management of the Lobito Corridor comprises the infrastructure and the railway and port operation, over an extension of more than 1,200 kilometers that connects Angola to neighboring countries such as Zambia and SADC partners.
The reactivation of the Lobito Corridor is part of the Angolan Executive’s efforts to strengthen regional integration and materialize the sub-region’s cooperation commitments. The project focuses on the Atlantic-Indian interconnection, with the connection of the railroad to the Port of Dar-es-Salaam, in Tanzania.
The Lobito Corridor is formed by the port of the same city and the railways of Benguela. The corridor route is the fastest export route for copper, cobalt and other minerals to countries such as Zambia or the Democratic Republic of Congo.
Impact on job creation
The award of the Lobito Corridor to the consortium made up of the companies Trafigura, Vecturis and Mota Engil brings relevant benefits to the country, the Transport Minister recently said in a note sent to the newsroom.
Among the benefits, Ricardo de Abreu pointed out the direct impact on the development of industries that are heavily dependent on the logistics chain, such as agriculture and mining, and the consequent creation of jobs in each of these areas.
The Lobito Corridor, he said, will also create opportunities for the development of small businesses adjacent to rail transport and a competitive rail alternative to road transport. This alternative, he added, is capable of contributing to the reduction of freight transport rates.
According to the note, financially, the operation of the Lobito Corridor will allow rail transport “to bring a set of positive benefits, contributing to local and regional development, around the railway line, and may represent a contribution to the Gross Domestic Product, estimated at between 1.6 and 3.4 billion dollars”.
“The proven technical capacity and financial strength of the companies that are part of the consortium are a guarantee for the correct operation of the transport of goods in the Lobito Corridor”, guaranteed, on the occasion, Minister Ricardo de Abreu.
The Belgian company Vecturis is a private railway operator that provides transport services for passengers, minerals and goods anywhere in the world. Founded in 2006, it is assumed, in the market, as one of the most experienced railway operators in private railway operations in emerging economies and already operates in countries such as South Africa, Brazil, Russia, among others.
Switzerland’s Trafigura, founded in 1993, is one of the largest physical commodity trading groups in the world. It also owns and operates several industrial assets, including the fuel storage and distribution company Puma Energy. It currently employs over 13,000 people in 48 countries.
In turn, the Portuguese company Mota Engil has been operating in the Angolan market for over 70 years, in the Engineering and Construction sector.
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