Africa-Press – Liberia. The US Administration of President Donald J. Trump has come out in firm support of a multiuser rail system with an Independent Operator, and calls on the Administration of President Joseph N. Boakai to quickly close deals and attract more US Investment. In a clear sign of this position, the Senior Advisor on Africa at the U.S. State Department, Massad Boulos, who also serves as Senior Advisor to President Trump on Arab and Middle Eastern affairs, posted on X: “Reliable infrastructure is key to sustainable development. In Liberia, President Boakai is making progress in establishing a multi-user railway managed by an independent operator which will create new economic opportunities for Liberia’s people and attract U.S. investors. The U.S. endorses his initiative and urges all parties involved to make a deal quickly.”
The post was also reposted by Ambassador J. Peter Pham, former Trump Envoy to the Sahel Region, echoing those sentiments and stating “Clear message from #USA🇺🇲 admin under @POTUS to #Liberia🇱🇷’s gov’t: an integrated infrastructure corridor like #Lobito, anchored by multi-user railroad with a trusted independent operator, will attract American support & investment, boosting prospects across region. Let’s do it!”
US Authorities are reportedly closely tracking ongoing negotiations in Liberia with the Government and Ivanhoe Atlantic (formerly HPX), a company owned by Mr. Robert Friedland and other US investors that is seeking rail access in Liberia for the evacuation of iron ore from Guinea on the Yekepa to Buchanan Rail. The rail has been under the exclusive control of ArcelorMittal, a monopoly that has lasted over 20 years and set to expire in 2030. AML is demanding that its monopoly over the rail asset continues, whereas the Boakai Administration has decided through Executive Order that the corridor be opened up to multiple users under the regulatory oversight of the National Rail Authority. AML is reportedly adamantly against this policy shift and is insisting that it continues to operate and monopolize the rail for 25 more years. The Government of Liberia has received proposals from at least two internationally recognized rail operators, including TheloDB, a major South African-German company, and Rail Development Corporation (RDC), a US Company.
In recent documents seen by the Daily Observer provided by Government sources, the potential for revenue generation under a multiuser regime with an Independent Operator presents clear revenues for Liberia to the tune of billions of dollars, if the Corridor is opened to others and not just AML. In the case of Ivanhoe Atlantic, the company is insisting that Liberia transitions to an Independent Operator when the current AML Mineral Development Agreement expires in 2030. According to documents, Ivanhoe Atlantic has proposed a fiscal package that includes over $1.4 billion in rail user fees, $600 million in projected income and other taxes, approximately $900 million in infrastructure investment, $175 million in Community contributions to impacted counties, over the duration of its concession Agreement. In the immediate, the Company will pay $35 million upon signing which is in addition to $37 million paid during negotiations in 2022. It is reported that thousands of jobs will result from this new agreement both in terms of direct employment and through downstream local service providers.
According to Industry observers, there is no reason that Liberia cannot benefit from multiple investors including AML and Ivanhoe Atlantic using that Yekepa to Buchanan Port rail infrastructure, which is Government owned. There is no threat to AML whatsoever and both companies can still run very viable mining businesses. AML has been a major investor, however, Liberia cannot rely on just AML in a corridor that has an estimate of over 11 billion tons of iron ore. It makes sense to open up the corridor to multiple companies looking to invest and build sustainable businesses.
President Boakai has signaled on multiple occasions his desire for a multi user system and independent operator, although he has been slow to appoint a management team for the National Rail Authority.
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