Lobito-Luau Railway Corridor Project

Project description 

The Project consists of the operation, management and maintenance of approx. 1,350 km of railway line, a brownfield infrastructure asset which crosses Angola from east to west, from the city of Luau at the border with the Democratic Republic of Congo (DRC) to the Port of Lobito on the Atlantic coast; including the operation and maintenance of existing and new ancillary infrastructure along the railway line and at the mining terminal located at the Port of Lobito.

The Project involves the following components: (i) the operation, management and maintenance of the brownfield Lobito-Luau railway line and ancillary infrastructure, (ii) the operation and management of the railroad service for the transport of merchandise on the Lobito-Luau railway line, (iii) the construction, operation, and management of two freight transit terminals (in Lobito and Luau) to support the rail freight service, (iv) the management and maintenance of the transport training center in the city of Huambo, (v) the operation, management and maintenance of railway workshops, located in Lobito, Cubal, Huambo, and Luena, and (vi) the use of the Port of Lobito mining terminal for the reception, loading, unloading, and transshipment of goods within the perimeter of the Port of Lobito mining terminal, as well as the management and maintenance of its infrastructure, in Angola.

The Project entails one of Africa’s historical railway lines, an established corridor which aims to provide landlocked, mineral-rich, neighboring countries such as DRC and Zambia with an attractive route for the transport of their mining outputs – primarily copper and cobalt - for global export.

The proposed MIGA guarantee would cover Equity/Quasi-Equity and/or Shareholder Loan investments by Trafigura Pte Ltd (Singapore), ME Lobito SGPS LDA (Portugal) and/or any of their group holding companies, subsidiaries, or affiliates, into Lobito Atlantic Railway SA (the Project Enterprise) for a duration of up to 20 years. The guarantee is expected to cover the risks of Expropriation, Breach of Contract, War and Civil Disturbance, and Transfer Restriction and Inconvertibility.  

Environmental Categorization 

The Project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.

Development Impact 

The Project will play a key role for the economic development of Angola and the region more broadly, mobilizing significant private sector resources and expertise for the long-term operation and management of a strategic asset – previously in the public domain - under a PPP structure. The Project will enhance connectivity between some of Africa’s mineral rich countries and the rest of the world, supporting increased availability and supply of key metals for the clean energy transition (primarily copper and cobalt) at a global scale. Through the mobilization of foreign direct investment (FDI) in the non-oil sector, the Project’s contribution is also significant in the context of Angola’s diversification away from hydrocarbons.